Analyst: Apple’s U.S. consumer market share now 21 percent

Philip Elmer-DeWitt from Fortune Online provides one relevant statistic and one April Fool's joke about the Macintosh. First, the relevant bit, which is of course close to my heart:

According to IDC, Apple’s worldwide market share grew from 2.4% in 2006 to 2.9% in 2007. Piper Jaffray’s chief Apple analyst Gene Munster is conservatively modeling global market share to remain flat this year, but he notes that enterprise sales account for 70% of the worldwide market, a segment Apple is not aggressively targeting. In the consumer market, where Apple does compete, he estimates the Mac’s share is now 10% worldwide and an impressive 21% in the U.S.

Put another way, once we contort the numbers in two ways in Apple's favor (first, by focusing solely on the US market, where Apple's market share is highest for obvious economic reasons, and secondly by completely ignoring a full 70 percent of all PC sales), suddenly, Apple's market share doesn't look so bad. (Actually, there's a third contortion here, as "consumer sales" aren't easy to measure, so this is mostly an educated guess on the part of Munster and IDC.)

These kinds of manipulations may seem unfair and, of course, they sort of are in the sense that statistics can be used to show anything. But let's be honest: Apple mostly targets the consumer market with the Mac. (On the flip side, when Apple targets the business market with the iPhone this year in order to reach its promised 10 million units sold milestone, few Apple fanatics will draw this distinction or have a problem factoring in business sales when they tout that machine's successes. They're cute like that.)

So what does this all mean? In Apple's strongest market by far, and by guessing at what consumer sales are, the Mac gets about 21 percent of the market. Despite the dubiousness of the measurement, I'm willing to accept this as relevant and "true": About 1 out of every 5 PCs sold to consumers (i.e. students and other individuals) are Macs.

Here's the April Fools bit:

Although consumers and investors tend to believe Macs cost 20% to 30% more than comparable PCs, according to Munster, he did some price comparisons and found that on average, the price difference is closer to 16% for desktop machines and 9% for laptops — essentially unchanged from a similar comparison he made two years ago.

This is completely irrelevant if cunningly argued. There's a myth of there that Macs and PCs are comparably priced. But this isn't true. What's true is that "comparable" PCs and Macs are comparably priced. But Apple only sells a few different models. When John Q. Consumer shops for a PC, he's doesn't compare Macs with comparable PCs. He compares Macs and PCs. And what he will find, for example, is that he could buy a low-end Macbook notebook for as low as $1099. Or, he could buy a low-end Dell Inspiron 1525 notebook for just $499, less than half the price of the Mac. Are they comparable? No, not from a specs perspective. But that's not the point, nor is it how people shop. (It's like arguing that BMWs are comparably priced to Fords. Maybe they are, for "comparable" models, if there are such things in that market. I don't know.)

PCs are still less expensive than Macs because there are far more choices in the PC market. One of the choices you get is to buy a less expensive machine with fewer options.

Anyone who believes otherwise is, well, a fool.

Discuss this Article 62

johnpapola
on Apr 3, 2008
"RAM Argument?" I thought it was a 32bit OS limit and so I ASKED you to clarify. So if you're saying that Vista 32bit supports the 4GB of ram as addressable memory, great. If you're saying that Vista 64bit is 100% viable for consumers, than even better. I won't bring that up as a limitation again. However, if you're going to be such a Microsoft apologist that you actually DEFEND the hobbling of the OS in order to FORCE users to buy "Business" or "Ultimate", than you're a fanboy far more blind than I. No, it's not at all right for Microsoft to gouge customers with fake limitations, even if these machines are a minority of the machines out there. I don't know why you'd defend that and it goes back to the main point that both Paul and I agree on: Microsoft bifurcated the Vista system into totally artificial versions in order to confuse customers and milk them of more money in an effort to raise the ASP of windows. As for your inability to engage the real debate of the thread, it's pretty amazing. "it's only 2.67% worldwide though. i guess US marketshare really doesn't count for much after all eh? " - Um. What? First of all, Paul concedes that Munster's numbers for consumer share are probably right, which would put Apple's worldwide share of consumers at 10%. I'd be willing to bet that Canada has comparable Mac consumer share to the US: 20%. Of course, you're not capable of arguing for what worldwide share numbers "count for". Because it's demonstrably worthless as a benchmark of anything. Again, if you're even remotely interested in getting educated about Marketshare as a business metric, you should read the paper from Wharton business school I linked to. Engage in the debate or get lost, man.
Waethorn
on Apr 3, 2008
"No, it's not at all right for Microsoft to gouge customers with fake limitations, even if these machines are a minority of the machines out there." you mean like how Apple hobbled the iPod to not support WMA through a firmware revision, even though the audio processors supported it natively? that's exactly what i was talking about when i said OEM hardware companies like to tweak firmwares to leverage their own brand, as well as to limit customer options. "Microsoft bifurcated the Vista system into totally artificial versions in order to confuse customers and milk them of more money" you mean how Apple charges for service packs every 2 years (or less)? "Engage in the debate or get lost, man." we get it. you worship Jobs, and you'll defend him to the bitter end. don't you have a commercial to film for the "Star Trek and Bikinis Channel"?
johnpapola
on Apr 3, 2008
I think everyone can see that you're a partisan hack, Waethorn. What does iPod WMA support have to do with Mac marketshare or Microsoft's hobbling? Zero. Maybe Apple didn't want to pay Microsoft for a license to an irrelevant and proprietary audio format when they already support MP3, AAC, AIFF, Wav and Apple Lossless. How does your ludicrous dig at OSX updates as "service packs" further the discussion? It doesn't and it's wrong. It's just a knowingly ignorant statement that's pure troll flamewar FUD. You are just so incredibly childish, it's amusing. I can totally picture you plugging your ears and screaming "LA LA LA, I CAN'T HEAR YOU".
Waethorn
on Apr 3, 2008
"What does iPod WMA support have to do with Mac marketshare or Microsoft's hobbling? Zero." it means that it cuts iPod customers out of support of 3rd-party music stores to leverage their closed market, plain and simple. Zune may have done that too, but the Apple abused their monopoly to stifle competition. (what does Microsoft's "hobbling" have to do with an Apple article? - you're the one that brought that up) "How does your ludicrous dig at OSX updates as "service packs" further the discussion? It doesn't and it's wrong." it's milking customers out of money for miniscule updates. if Leopard has "300+ new features", then Vista's count is somewhere near 5000+. (what does varying Windows product versions have to do with Mac marketshare? - you're the one that brought that up) "You are just so incredibly childish, it's amusing." ya, you know, coming from someone that's trying to change the subject to put in a jab against Microsoft at every opportunity, while i point out that Apple does the same thing. you are too drole. btw: nice blog you got there.... :P (for those of the uninformed, he has a blog which is what i would assume another daringfireball-wannabe continuous anti-microsoft hate speech, but no valid links to it exist) why don't you write on it instead of coming here to waste bandwidth day-in, day-out? oh right - nobody would go to it - this is the only place where you'd get an audience....
Avro
on Apr 3, 2008
@ Waethorn Why do you consistently confuse new Apple Operating Systems that have hundreds of new features such as Jaguar, Panther, Tiger and Leopard with Microsoft bugfixes? Is it just beyond your understanding? That is why they give them different names. The fact that Microsoft takes 5 years plus to get its act together is neither here nor there. @Dipsht Admin You make some good points but Apple is making some big inroads with companies with less than 1,000 employees - 15% to be exact. Now that isn't earth shattering, but it is growing. Long term costs of Apple ownership and networks is a big factor and if it all goes Tango Uniform you can always run Ubuntu or Windows on it. In many ways since going over to Intel it has opened up a whole new market for Apple. Wilkes University is in the midst of replacing all its computers with Macs. Dell and HP now have to compete with Apple. http://www.microsoft-watch.com/content/vista/eweek_survey_vista_gimme_xp... I work for two organisations with 100,000 plus employees and one of the things our IT and IS guys complain about is the arrogance of Microsoft "We are the only game in town" and the introduction of Vista has many of them favouring a migration to Linux. All those Microsoft licences add up (sometimes up to 5 for one computer). I don't think Microsoft can automatically assume that Enterprise will stick with them no matter what. @drwam With the greatest respect you have not addressed the point that Mac software houses, the shareware market and after sales shops are thriving. Take a look at some of the tech conferences, almost everybody seems to have a Mac. I think what we may be seeing here is the difference between the US Mac Users and the rest of the world. Here a whole generation grew up as enthusiasts using Sinclair ZXs & spectrums, BBC Micros, Atari STEs, Commodore Amigas, Macs and Acorns and lots of kids could not afford consoles and got into programming. The ones who really were not interested in choosing a computer just went along and bought a Windows box. They are as you suggest the types who buy a computer, never upgrade and just use the software it came with. Most of the Mac Users at our university (175,000 students) have MacBooks or iMacs, but they do upgrade their RAM and are constantly searching for new and better applications for their academic work, for their career and for pleasure. I am currently putting together a Website with software recommendations for the univesity. The LInux guys get into loads of hardware configurations and argue about which distro is better and whether the Gnome or KDE desktop is best. I have to say that most of the Windows Users are unadventurous in the extreme and spend a great deal of time just getting their stuff to work. This is not to say that they are stupid or that Windows is bad, but their interest in computers in minimal. In no way can they be considered enthusiasts. They just have gone along with the crowd and want something to do a bit of WP, browsing and sending emails. Some Mac Users of note David Pogue NYT Walt Mossberg WSJ Steve Dotto Leo Laporte Paul Graham @johnpopola Most of the info I have seen places the Canadian Mac market share a bit above that in the US.
johnpapola
on Apr 3, 2008
Ok, first of all, you were the one that came in with your usual sales pitch for how much cheaper you can build a PC than a Mac. I questioned the ram issue and you answered it. We all know that you can build a cheaper PC than Apple. Great. As for this iPod divergence... what are you smoking? First, Apple hasn't been demonstrated to have a monopoly, so your use of that is a dishonest tactic to establish ethical equivalence with Microsoft. Also, considering that you can happily load MP3s from Amazon or eMusic onto the iPod (the #2 and 3 digital music stores), makes that whole phoney argument irrelevant. Second, again, why should Apple license codecs and DRM software from Microsoft for a format that essentially nobody uses? Especially since Microsoft themselves don't even use it for their player? Maybe, if they want to inflict sync and authentication problems on their users, they can try out "playsforsure", but I think most iPod users like the fact that the damn thing ACTUALLY WORKS. As for that old blog with 3 posts I started years ago, what's your point exactly? I think it's obvious that I'm a defender of Apple's approach to everyone, and I think that the marketshare article I wrote back then still holds up in this very discussion. At least I'm not here bashing Apple to try and sell people on my computer business, if we're really going to go into the world of personal motivation and bias. As I've said before. I'm here, posting in these apple-related articles, as a reader of Paul's and a geek that like to debate and learn from other users. You're still unable to discuss the meaning of market share in anyway other than as a troll. I don't know what else you're trying to prove. Macs are more expensive than PCs. We get it. You win. Nobody cares. Apple's marketshare is still going up and their consumer share is still much much larger than you're capable of admitting. So which one of us is "coming here to waste bandwidth"? Wouldn't you find it more productive to talk with fellow Windows enthusiasts about how to optimize your PCs? I just come here in between writing scripts and waiting on emails at work. i can type fast, so my crazy long posts don't take me too long. btw: Daringfireball rocks.
DRWAM
on Apr 3, 2008
Avro, I see your point, but I have numerous freinds and 300 employees from diverse backgrounds. Very few buy more software for their computers other than what's shipped, Windows or Mac. College and more educated are a different group and surely do exactly what you say. I'm sure that we can agree that there sems to be a few tiers of users. Perhaps I am referring to the less educated home user, and you of the more educated. But lets exclude doctors from the latter because some of them are computer illiterate...trust me. They bother ne night and day. :) So, when's that new iPhone coming? We got Mac and Windows users waiting here in South Jersey. I know that you will all spank me for this, but I am choosing between the Centro and the next iPhone.
Waethorn
on Apr 3, 2008
"We all know that you can build a cheaper PC than Apple. Great.....You win." ....and you previously said that Apple was competitive. thanks! i accept your apology. (btw: i'll remember you said that from now on)
johnpapola
on Apr 3, 2008
So sure, you win on price (unless you're talking Mac Pros, which are cheaper than Dells and the rest). You also win on being the troll most able to ignore the fundamental point of the debate and the post again and again and again. See, man, I can admit when you have a point, but you're incapable of the reverse. That makes you the true zealot in the room.
Dipsh t Admin
on Apr 4, 2008
John, don't throw stones if you live in a glass house. Don't take this as defending Waethorn. While we are both on the same "team", I can tire of him as well. Those that have been here a long time certainly remember the lotsa-waethorn battles that would occur every day. Now it's the john-waethorn show. But earlier you said this: "I'm a defender of Apple's approach to everyone," Yet, you are calling Waethorn a zealot, which he is, but making it seem as though you are "above" this. John, what you are doing is by *definition* a zealot, so please don't try to make it seem that your s**t don't stink. From http://dictionary.reference.com/browse/zealot "One who is zealous; one who engages warmly in any cause, and pursues his object with earnestness and ardor; especially, one who is overzealous, or carried away by his zeal; *one absorbed in devotion to anything*; an enthusiast; a fanatical partisan."
johnpapola
on Apr 4, 2008
Dipsht, Don't worry. I think I've exhausted myself of engaging with this hardhead. Yes, I am a Mac partisan. I do get animated in defense of Apple when they're unjustly attacked, since I love the platform and their software. But I believe that I'm fair. I'm willing and demonstrably able to admit when other people make a good point. I'm also willing to engage people fully on all of their points. Zealot has a stubborn connotation that I don't feel applies to me. Feel free to disagree. I'm way to verbose, but I'm not stubborn. Waethorn doesn't do this, though. He never admits when he's been proven wrong. He constantly spews one-liner FUD instead of actual thoughtful discussion. And he blatantly ignores areas of the discussion where he clearly is wrong through redirection. His style is that of a child snickering after calling someone a name. This kind of behavior wouldn't be tolerable for 10 minutes in a real life conversation, but it can go on and on in this forum. And I admit I'm partly to blame. Well, I'm withdrawing from the dual. I've made every effort to engage him in real discussion and he's come back every time like a mindless hack. From now on, I'll just ignore him. I promise. It is telling that he "feuded" with another user before like this. What's the common denominator here?
Waethorn
on Apr 4, 2008
"It is telling that he "feuded" with another user before like this. What's the common denominator here?" that user left, as did the one before.

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