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More strange Apple figures tip up

Nearly half of US retail computer sales revenue
Thursday, 26 November 2009, 12:20

THERE IS ANOTHER bizarre set of figures out that claims Apple machines are taking over the world.

Yesterday we noted a claim that Iphones are responsible for most of the world's mobile traffic, but today there is another assertion that almost half of retail computer sales revenue is also fruity.

NPD analyst Stephen Baker was apparently having a word with Joe Wilcox of Betanews, who said that while Apple's computer market share in the US is small, at about 9.4 per cent, its share of retail revenue was nearly 50 per cent for desktop PCs and 33 per cent for notebooks.

So basically one in two dollars spent on desktops and one in three dollars spent on laptops in the US went to keeping Steve Jobs in pocket money.

Baker said that this was all because Apple charges a lot more than its PC counterparts. In October, the average selling price of a Mac desktop was $1,338 compared to $491 for a PC desktop. For laptops, the Macbook average selling price was $1,410 compared to $519 for a PC notebook, he said.

While that might be true, it is a strange way of looking at the figures and also incredibly unlikely, we think.

Being generous and saying that one in ten desktops or laptops sold is a fruit-themed toy from Cappuccino land means that to get 50 per cent of the market in value Apple's prices would have to be five times higher than PC prices.

While Apple does charge an arm and a leg for its gear, it does not charge that much. µ

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Comments
Oh God...

You don't even have to argue with fruits about how silly the whole Apple business is, they do it themselves with such preposterous claims and blatant skewing of the facts...

Most traffic on iPhone... not even in your dreams :) You really have to be an ignorant american to really think that, after years and years of mobile communication in the majority of the planet.

LOL x 2

posted by : Psihomodo, 26 November 2009 Complain about this comment
snApple world domination!

of course it helps if you think the world stretches from east to west coast and then you come to the big dip where the world ends and if you bungee off it you can clearly see a turtle standing on the back of 3 elephants.

posted by : I know, 26 November 2009 Complain about this comment
Revenue...

If you take it as profit, it's really possible. Apples are 3x the price, but they must have much better margins then normal PCs - this gives much more revenue on a much smaller market.
It just shows that Steve Jobs can laugh all the way to the bank.

Who pays for it? Apple fangirls&boys...

posted by : MirekCz, 26 November 2009 Complain about this comment
'Value for Money'

This should silence the Apple people who are for some reason convinced that they are getting value for money when they buy an Apple. Your not.

What you get is off-the-shelf hardware made in China with a pretty front-end.

posted by : spence91, 26 November 2009 Complain about this comment
Fanbois

Gee, there's so many people having a go at apple. It's like those blokes that make all that noise about not being gay all the time and then end up in bed with their best mate after too many beers - seriously, you all doth protest too much. You got something to hide? Maybe a macBook at home under the bed that you're ashamed of? Or perhaps it's like the neighbor with the nice car that you learn to hate because, well, his car is nicer than yours.

'What you get is off-the-shelf hardware made in China with a pretty front-end.'

Yeah, that's all you get. Nothing else, just that, yup, you're sooo right, just a cheap computer in an expensive box uh huh. (just do it in the voice of Stewie Griffin - you get the drift).

posted by : gareth edwards, 26 November 2009 Complain about this comment
Apple

APPLESAUCE

posted by : Scott, 26 November 2009 Complain about this comment
9 times??

Those figures would me on an average in the US cost of 10 Apple PC's = cost of 90 non-Apple PC's. Apple toys are costly, but I wouldn't say 9 times as costly. Or maybe they are.

posted by : ssj4Gogeta, 26 November 2009 Complain about this comment
gareth edwards

yes, it's all made with stock parts. And the front-end is pretty.

This is what the story is about, the profit made because of the difference between the cost to build and the price that it's sold at.

I can't work out what your objection is.

posted by : spence91, 26 November 2009 Complain about this comment
If only Nick could read...

or do sums even. The numbers given were for ONE month, the month before Windows 7 was released, for retail stores only (in which Apple has now got a strong presence) and with shiny new iMacs on sale. Because of this Windows machine sales were down and iMac sales up, they managed about a 17% unit share among desktops and the MacBooks about a 12% among laptops.
There's nothing wildly unbelievable about this. Neither is it surprising that the ASP of a Mac is higher, Apple choose not to compete in the low price, high volume segments (and before smug Windows fanboys start there are plenty of high end PC models in the same kinds of price brackets as the Macs. Not everyone buys on the basis of what's cheapest).

posted by : Steve T, 26 November 2009 Complain about this comment
spence91

Hey spence91,
my point is simply that any mention of apple seems to throw people into apoplectic fits on this site (and many others). Yes, their kit costs more but so what, a swatch wrist watch does the same job as a rolex but personal choice dictates which one you prefer. It's really time that people just let that one go and accepted it.

People also have to accept that Apple's biz model will always be more profitable simply because they don't have a direct competitor in the same sense that other pc manufacturers do. They don't have to compete with cut-throat infighting within the sector (at all price points - and that's important) and that fact alone would always give them an advantage in profit making.

All the shiz about fanbois paying to line Steve's pockets doesn't really hold water, just the juice of sour grapes I think...

posted by : gareth edwards, 26 November 2009 Complain about this comment
Revenue

The article says revenue not total P.C. sales, you slap a Apple logo on a computer(same as any other computer) and you can charge an idiot $1000 extra. This brings revenue up by quite a bit you would have to sell 3 P.C.s to make the same money as 1 Mac

posted by : Deus Ex, 26 November 2009 Complain about this comment
Have to laugh

The thing is as a single company they will make more profit as they sell the same hardware at higher price than similar PC maker, the hardware is same as in a similar PC.

But the people most laughing are at M$ what ever way you look at it, Bill is smiling as for every ipod sold he gets a fee for some patents he holds, then lots of people who buy a mac put some form of windows on it so they can game or use other hardware/software.

I love the apple designs not the cost but the biggest winner at the mo is Bill Gates who just sells over priced software which most PC have installed and a shed load of mac users buy to.

So Fanbois or PC geek you probably fund the bigger winner in all this and it aint Steve.

posted by : Matt G, 26 November 2009 Complain about this comment
Not Hard To Understand

It's very simple - WIN PC users so loath the experience they are only willing to pay as little as possible (small screen, slow processor), etc - no problem as long as I'm paying as little as possible. Of course, they know all their equipment is the same - who cares what the label says on the front - you buy a WIN PC mainly by price because it's NOT worth buying by any other reason. Macs are not WIN PC's and as WIN PC users so eloquent believe if you slap an Apple logo, Apple charges you extra just for that because that's all they understand. They are wrong. They are WORTH MORE because THEY ARE WORTH more. It's as simple as that. You don't have to believe but it's a simple fact. You find it hard to believe there are ZERO viruses after 10 years and 60 million users of OSx - ZERO ... because that's impossible for a WIN PC ... but you get what you pay for. Believe or don't believe but there is areason why Macs cost more and why 98% of switchers never go back.

posted by : jbelkin, 26 November 2009 Complain about this comment
Nick, please understand RETAIL

Again, either Nick is not the sharpest spoon in the draw or he's just making stuff up....

H'e comparing TOTAL APPLE MARKET SHARE (of 9.4%) to RETAIL SHARE....

In other words it's not just revenue you need to consider you need to consider the retail vs commercial market.... (and Apple is far smaller in commercial space).

Or to dumb it down further - Apple's retail market share is probably a lot higher than the total market share of 9.4%, when you couple this with higher prices, near 50% revenue share IN RETAIL SPACE ONLY is not that much of a reach....

Oh boy, this is poor, even for Nick!

posted by : do the math, 26 November 2009 Complain about this comment
Chinese Apple? No Way!

As long as Apple hardware is being made in China by Foxconn, there is no way in hell I would pay 2 to 3 times the price for the same thing I can buy in a PC, most likely being made in the same factory.

posted by : Isma'il, 26 November 2009 Complain about this comment
Depends on definition of retail

Well if you take retail as in a physical store then most pc's are probably sold direct to corporations in bulk, then small business's and then consumers many of whom also buy direct from people like dell.

What you have left is a small percentage of the pc market sold via retail of which apple stores and such could make up a significant amount, particularly if lots of people were holding off buying last month until windows 7 arrived.

So just about believable.

posted by : ff, 26 November 2009 Complain about this comment
retail

"NPD measures in-store and online sales"
So we are just talking consumer purchases, not large company orders, which account for most of the world's computer purchases, I think.
It would have been nice for NPD to give some retail numbers of macs and pcs sold to the retail sector.

posted by : don buchanan, 26 November 2009 Complain about this comment
Lots of good reasons to buy a Mac, that's why people do it.

Agree with the post above - this article is poor, even for Nick. I don't believe a lot of these reports from market analysts, but I think the generalised objections put forward here are ignoring the exact conditions under which these figures were supposedly produced.

BTW, I still find it amazing that people who knock Apple cannot see the attraction in buying a premium product, which is the market Apple is targeting. I recently sold a two and a half year old Mac Pro on Ebay for £1400. I spent a total of £1800 on it when it was bought from new after buying some third-party memory and disks. For nearly three years I used a workstation class machine and it cost me the same as a cheap desktop PC, which would have had none of its value at the end of this period. It was VERY GOOD VALUE FOR MONEY.

This is not unusual with Apple products. There has always been a healthy second hand market for these computers. This alone makes the additional money a worthwhile investment.

posted by : Matt, 26 November 2009 Complain about this comment
It's called "differentiation"

Apple has a unique product line. You can't get a Mac anywhere else. You can't get an iTunes compatible mp3 player anywhere else. They've done an admirable job. This differentiation enables them to charge more margin. It's the same as BMW 3 series costing more than twice as much as a Honda Civic of the same size. Is a 3 series more car? Sure. Is it more than twice as much? Please...

Also, people speculate profit based on the cost of the hardware alone. However, within the price of a Mac is the subsidization of the software. Apple sells Mac OS X 10.6 for a mere $29, and that's not a cut down version or a just an upgrade. It's a full retail version. How? Because that difference is subsidized in the higher initial purchase price of the Mac. You have to actually own a Mac in order to use the software, unless you're pirating it with a Hackintosh. The same goes for most of their other software titles such as iWork.

Lastly, the price of building an iMac isn't comparable to a tower PC. PC's use standardized components such as motherboards that have a high economy of scale. An iMac, though using standard parts, has a unique form factor, and therefore higher costs to build. Compare an iMac to another all-in-one and you'll see how much more in line the pricing is.

posted by : LinuxLover, 27 November 2009 Complain about this comment
welll......lll.....

yeah id have to say the claim is a full cock-up job. i worked at an electronics chain that sold a LOT of macs, and we sold about 1 mac for every 50 or so PC's, and that was with 2 of 12 of the salesmen and saleswomen being dedicated 'MAC' ppl, and 2/3's of the rest being comfortable with em.

yeah crock o crap~

posted by : neko, 27 November 2009 Complain about this comment
i don't get it

...that there are still comments like this. get over it. there are ppl who like apple products and will buy them and there are ppl who won't buy them. what's the problem with that? would you also whatever fanbois attack ppl if they buy a lotus although they can have similar car in terms of shape and i don't know what, isn't it because you envy these ppl? or what's your point anyway? it's not your money spent on these products so calm down and enjoy your whatever box you have.

posted by : hexx, 27 November 2009 Complain about this comment
Dang it!

Know what - we have been nicknolled... again.

posted by : Abbe, 27 November 2009 Complain about this comment
crap article

a really crap article only intended as flame bait.....

Apple will always be a niche product period windows 'fanbois' (god I feel like such a wanker for using that term...). Anyway stop pissing your self, the Mac will always be a niche product unless they radically change their pricing structure and expand beyond the premium market.

Now as for the pejorative 'toy' label, I use a so called, 'overpriced toy' for business use. And do you know what... I think it may have actually improved my bottom line. I know I am more productive than some of my counterparts not using Macs. And I work with people who do things on PC's that I could never do. So what is your point when you hysterically resort to the labels. Anyone who, on either side, has to resort to dick sizing is in effect just a wanker...

posted by : b, 27 November 2009 Complain about this comment
9.4% mindshare domination

A few more percentage points and Apple will have the majority of the U.S. in it's grip. Will that make the Windows fanbois start shaking? Scared of Apple mindshare?

Whether these figures are lies are not, it really doesn't matter. Apple is making very decent money. Much more so than most Windows PC companies. Dell and HP are struggling. I don't care if Windows does hold 90% of the desktop market share. It's nothing to brag about if the majority of Windows PC makers are losing money. By the time the economy gets on track for Windows PC makers, Apple will have opened another 100 stores around the world and maybe have a couple of more percent of market share and a lot more revenue share. Good news for investors. Even "rounding errors" make money for Apple and investors.

posted by : iphonerulez, 27 November 2009 Complain about this comment
juvenile clickbait

"a fruit-themed toy from Cappuccino land"
Gee, my "toy" runs an OS based on BSD UNIX; your PC "toy" runs-- a mish-mash of insecure, poorly organized, relatively unstable code. And Cappacino land? A state where the GDP exceeds that of many countries and gives us not only Apple, but Intel, HP, Oracle, Adobe-- I could go on.

posted by : Tom B, 28 November 2009 Complain about this comment
Apples vs. Oranges.

That "9% market share" statistic includes all those PCs sitting in office buildings around the world, which spend 8 hours a day running MS Office and the remaining 16 hours doing f*ck all.

Apple don't give a shit about the corporate sector. They never have. There's (demonstrably) very little profit to be made in such a low-price, high-volume market.

Apple targets *consumers*. Specifically, the high-end consumer sector. The same sector targeted by Sony—Apple's real rival. Apple are a design boutique hardware company first and foremost. They don't sell OS X independently; it's just a component for their hardware.

Apple's market share in the consumer sector is a damned sight greater than most people—including this article's writer—think.

posted by : Sean Baggaley, 29 November 2009 Complain about this comment
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