Mac market share in Q1 2009 = 3.36 percent, Apple earnings strong

Apple has announced its earnings for the first calendar quarter of 2009, and while no company is likely recession proof, Apple is certainly recession-resilient. The company posted revenue of $8.16 billion and a net quarterly profit of $1.21 billion, which is huge. Mac sales were a much better than expected 2.22 million units, and though that's down a pretty meaningless 3 percent, year over year, it's enough for 3.36 percent worldwide market share. (In the year ago quarter, the Mac accounted for just 3.26 of all PC sales worldwide.)

US market share, of course, is harder to gauge since Apple doesn't break out US numbers explicitly. Looking at IDC (1130 units) and Gartner's (1135) estimated sales figures for the US, Apple's Mac has about 7.49 percent market share in the US. That's a bit more vague of an estimate, of course, but it seems reasonable.

Either way, the Mac's in great shape, despite the economy.

More impressive, perhaps, is the iPhone. Sales of the iPhone more than doubled year over year, with Apple selling 3.79 million units (according to AT&T, 1.6 million of them in the US).

iPod sales were up an inconsequential 3 percent, suggesting that the new iPod shuffle hasn't been a fast seller. It's rare for Apple to completely replace an iPod model in the first quarter (they usually go after the full lineup each September) but it doesn't look like it made much of a difference. Maybe the next shuffle could be bigger and have a real UI.

Discuss this Article 90

jeffsters
on Apr 22, 2009
Hey, in this economy, no matter how you cut it, these are good numbers! There are TONS of things I would change and products I would advocate, but I can't argue with success! They must know more than me cause their making the numbers!
daProject
on Apr 22, 2009
they said iPod Touch sales were up 100% year on year - thats big.
Waethorn
on Apr 22, 2009
Really? 7.49%? What happened to the 10% estimates that Goatburg and the Mackie Cronies were fawning over all last year?
SPiotr
on Apr 22, 2009
"There's a weird psychology with Mac fanatics, where they believe every positive bit of news about their favorite platform, and use it all as evidence that Macs will one day rule the world. Well, here's one fact you guys can simply ignore: While overall PC sales jumped a whopping 13 percent year-over-year in January, sales of Mac computers actually dropped 6 percent in the same time period. The reason? The average selling price of a Mac is about $1500, or double the average selling price of a PC. On the good news front for Mac fanatics (i.e., you guys can start paying attention again), revenues on the PC side were flat in January because more and more buyers are turning to low-cost netbook computers. Overall, these numbers won't mean a thing to Mac market share, which is still mired at 3.2 percent worldwide and under 5 percent in the US. Yeah, a couple of other inconvenient truths." Paul Thurrott wininfo-short-takes-week-of-february-23
Waethorn
on Apr 22, 2009
@SPiotr: You forget that in January, people were waiting for announcements from MacWorld before they bought anything.
Ocean
on Apr 22, 2009
So Daring Fireball was right when he said that Apple had invented the next big platform: The iPhone/iTouch? Paul, would you agree?
maati
on Apr 22, 2009
Yeah, I was right. Even in this economy there are enough people buying premium (=Apple) devices. I knew it. The so-called crisis mostly hurts those who would not buy expensive devices anyway. And people who want Macs and can afford Macs just don't care about ads like those "Laptop Hunter" ones.
DRWAM
on Apr 22, 2009
Yep maati, I think that it applies to most expensive wares, even cars. The rich can still afford them, but the less expensive, or entry level luxury models probably aren't selling as well. But buying higher end stuff can sometimes last longer. That's what's said about Macs, but I have the same experience with two expensive, high end Dell laptops. One hat I bought in 2001 [Inspiron 7500] with all the lights, whistles and bells for $3,600, is still running fine. I upgraded to XP, then gave it to my mom. The vid cable in my Inspiron 8200 is loose, but I could have used glue or a glue gun, rather than but my prized $399 ACER laptop. I was happier than Lauren!
johnbaxter
on Apr 22, 2009
Wae, the really silly market share figures (like 10% +) come from Apple talking about US retail sales. A retail sale is not an enterprise buying 50,000 Dells (or even 50). I don't think it's a consumer buying from Apple's or HP's or Dell's (etc) web site either, although I haven't seen a definitive statement one way or the other. If it means brick and mortar (1x4 and wallboard) stores, Apple's share naturally shows up well. And meaninglessly. --John (long time and still Mac user typing on his new Dell Studio)
DRWAM
on Apr 22, 2009
John, did you get the Blu-ray?
SPiotr
on Apr 22, 2009
@Waethorn I didn't forget. The quote is Paul's.
johnbaxter
on Apr 22, 2009
No, DRWAM, I concluded that I didn't want to spend extra for Blu-ray.
Jon Fingas
on Apr 22, 2009
The 10 percent usually applies to retail; in a broader sense, it might only have happened if the economy hadn't tanked. I do think Apple needs a real sub-$1K portable, though, and needs to be more aggressive about updating its desktops. You do start to wonder how much of the netbook market is robbing Peter to pay Paul; Apple mentioned in its call that netbooks are padding the PC market's numbers. It's true that Apple is missing out on a market, but it's a market where the participants are complaining: Microsoft doesn't like it because it has to charge just $15 per copy for Windows XP, PC makers that aren't Acer and ASUS don't it because it destroys their margins, and Intel doesn't like it because you're buying an Atom and not a Core 2 Duo. I'm most anxious to see next quarter's results. If there aren't real signs it's recovering, then it's in trouble. But I wouldn't count on that.
kent909
on Apr 22, 2009
I think there really has not been enough time since the release of the new iPod Shuffle to gauge it's success. As to Apple ever ruling the world. Not what I want. I got my Mac. The rest of you can use what ever you want. The more of you that use PC's the better for us Mac users. I am perfectly happy not being hacker bait.
SPiotr
on Apr 22, 2009
@johnbaxter "If it means brick and mortar stores, Apple's share naturally shows up well" You haven't being paying attention John. All the recent US retail figures have looked poor for Apple. Hence the quote I posted above. Paul's response to some more Apple doom and gloom from NPD. This is not a fanboy thing. This is an economics thing! For the last 6 months we have ben hearing from pundits and fanboys (of ALL persuasions) that Apple is going to be hit really badly with this crunch. "Apple will HAVE TO drop their prices" "They lack CHOICE" "They NEED a netbook" etc etc. And when the real figures actually appear... what do we see? The PC vendors, with their choice and low prices and ruddy netbooks... losing market share .... squeezing their margins,,, and dropping their ASP by 20%
chuckb84
on Apr 22, 2009
So, marketshare is up, profits are up. Yah, the lack of that netbook is just KILLING Apple. The PC industry, except for Apple, is in a desperate race to the bottom. Cheaper hardware, lower margins. Volume doesn't help if you don't make any money from it. Microsoft is now in the same trap. To keep unit sales up, they have to accommodate to the the netbook niche. And what does that mean? It means the Zombie-like continuation of Windows XP, because they can sell it cheaply, and that is just bizarre, since they are simultaneously trying to roll out Windows 7 and explain to everyone why they "need" it. And speaking of Vista SP2, uh, I meant to say, Windows 7, the netbook market requires the creation of a lobotomized version of Windows 7, the "Starter Edition", so that Microsoft can sell it cheaply, followed by a bait and switch upgrade strategy. Apple continues a one OS strategy, giving people all the features for one price. Microsoft is now caught with the hardware vendors in the bottom feeding market of "cheaper and cheaper". My god, it's in their ads; it's the whole theme. It's great that Paul gets such solace from the 3.36% "marketshare" number. Yes, there are lots of Windows cash registers out there! Every PC vendor in existence would kill for Apple's numbers, marketshare and all. Moneyshare matters too.
slimshadey
on Apr 22, 2009
What is so FRAKING hilarious about this crap Paul spews is that Apple is an hardware company first and then whatever else. You know the tax part on the hardware, that everyone is moaning about. Paul compares market shares of a software OS (Windows) to Mac's, as in hardware?? From these numbers we can clearly see that Apples year over year Mac sales were down a small percentage, but because iPod and iPhone sales were up Apple over all was up. Paul one more time.... Microsoft = Software/Business focus Apple = Hardware/consumer focus The two are really hard to compare. Sure there is overlap, Zune, 360, OS X, iWork, video and photo software from Apple but that overlap is tiny really.
DRWAM
on Apr 22, 2009
I learn more and more from everyone all the time. Thanks for allow me to be a voyeur. Doc PS John, I didn't think that Blu-ray was a worthwhile upgrade for many too, but some models had it included recently.
tayme
on Apr 22, 2009
Great job, Apple. Success is a good thing! I know that in any industry it is good to see positive numbers theses days. Say what you want, but Apple had a good quarter again. Now, that does not mean that Microsoft is in the tank...that is just not true. The release of Windows 7 will bolster the rest of their year. Both companies will still be in existence for a long time to come. Get used to it and get over it. --tayme
tayme
on Apr 22, 2009
Good point and he is right. Apple is first and foremost a hardware company. You got that one right on the money, Real! The comparison between sales from the 2 companies are really meaningless. --tayme
WebGuy3000
on Apr 22, 2009
I would hope one of the takeaways from this is that people should stop listening to these stupid NPD estimates. They are always, and I mean ALWAYS, wrong about Apple. I don't know why they bother.
cesjr
on Apr 22, 2009
"The company posted revenue of $8.16 billion and a net quarterly profit of $1.21 billion." That works out to a whopping "Apple Tax" of 14.8 percent. Wow that's terrible, apple and its employees are really ripping off consumers by working hard, innovating and making a reasonable profit Meanwhile, MS's profit margin was 35.7 percent last quarter (they have not announced this quarter yet). And that's after factoring in the money losing businesses, the margin on windows and office is much higher
WebGuy3000
on Apr 22, 2009
@cesjr: Apple's gross margin for the quarter was 36.4 percent
hamiltonstallings
on Apr 22, 2009
"Meanwhile, MS's profit margin was 35.7 percent last quarter (they have not announced this quarter yet). And that's after factoring in the money losing businesses, the margin on windows and office is much higher" o0o0o They must be evil!!! o0o0o overthrow the government! Let the revolution begin!! douchebag.
cesjr
on Apr 22, 2009
"Apple's gross margin for the quarter was 36.4 percent" Gross margin doesn't take into account all costs. Do the math - 1.21 divided by 8.16 = 14.percent. I used the same math for MS. "o0o0o They must be evil!!! o0o0o overthrow the government! Let the revolution begin!!" dimwit.
hamiltonstallings
on Apr 22, 2009
O0o0o0o I can do math! This shows that I am smart and my statements are meaningful! Yes, what I say is true everyone. douchebag 5x.
Avro
on Apr 22, 2009
@SPiotr According to the SEC filings Apple desktops were down 4% and laptops 2% over last year and don't forget that 13% increase for PCs is almost all down to netbooks which are 8X more popular in Europe than the US. Effectively the iPod Touch and iPhone are Apple's netbooks (for the moment). Sales stand at 37 million.
johnpapola
on Apr 22, 2009
Just to be clear, this is proof that Apple's pricing is smart. It's not clear that cutting their prices would result in higher profits, since you'd have to more than make for the lost per-unit profit with increased volume. Since they're clearly running a great business, I think it's reasonable to expect that they're following the market demand closely and weighing the potential of changes to their pricing all the time. So, is there an "Apple Tax"? Not according to their happy customers who are still lining up during the worst economy since the great depression. Again, when the demand really drops off, expect to see price cuts. Not before. That'd just be stupid business and anyone advocating that should recognize it as such. ps. does that mean I'm happy Macs cost more money? no. i wish they were cheaper. Hell, I wish they were free. But I'll still keep buying them because I think they're better even at the higher price.
Mum
on Apr 22, 2009
Exactly. I hope we'll soon see an end to the "Apple Tax" discussion silliness. They don't have to join pc makers' panicky price competition in order to stay in business or follow Microsoft's suit in crippling their os to the point of being useless to justify including it with netbooks at low prices.
subzerohitman721
on Apr 22, 2009
There is absolutely no doubt Apple makes good products. Apple managed to squeak by this quarter compared to 2008 and 2007. However, the slide in Mac unit sales continues and I believe this is several months of consecutive slide in the Mac unit. Also, Year over Year they were down 3 percent. So Apple is being impacted by the economy. With the number of well off, millionaires, and billionaires in the United States, these guys will continue to go to bat for Apple. Good for them. Yet it doesn't change the word on the street. Consumers with budgets and middle class sensibilities don't want to buy Apple. Its a win for Apple and its a win for the Rest of PC industry. Last I checked, the PC industry is coming of a low and the stage is set for a return to growth. So all of this, Apple's right and the rest of the PC industry is wrong, doesn't match to the data. Dell maybe doing bad, but others are taking its place. HP is in the number one spot is up 2.9 percent world wide. Netbook sales continue to be hot fot the industry. As Intel CEO Paul Otellini said "We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns." HP isn't the only brightspot. Acer is doing very well making with their March 31st sales on Windows based netbooks. Acer virtually tied with Dell and is in a position to take 2nd place away from Dell. That sounds like a competitive market to me. Its tough for everyone, but its not like the PC industry is dead or is going to die tomorrow. Apple in most places is in the 5th spot with consumers. Apple is making progress, but don't count out guys like HP and Acer yet.
cesjr
on Apr 23, 2009
"Just to be clear, this is proof that Apple's pricing is smart. It's not clear that cutting their prices would result in higher profits, since you'd have to more than make for the lost per-unit profit with increased volume." I agree and think that people wrongly assume that apple "has to" price the mac or all its products "high". With the mac, apple has to pick a profitable and viable niche. The fact is that Windows dominates. It would be plain stupid, from a business standpoint, to just blindly offer the same products or target the same markets as Windows. Apple has a high-end, non-geek consumer niche (and also a creative industries niche). It makes good, reasonable profits out of these folks. That's smart business. And remember, if it ain't broke, don't fix it. Lowering prices to compete more directly with windows customers that want low priced machines would lower apple's profits on its existing customers - unfortunately you can't charge your new customers less money than your existing ones. Now it's clear that apple has more room to choose other strategies in the PMP and smartphone spaces. There it has been committed to preventing a "price umbrella" under its products for competitors to sneak in. iPods, while sometimes slightly more money (like $50-75), have always been competitively priced. Certainly nothing like a clear, significant premium as with the mac over windows. "O0o0o0o I can do math! This shows that I am smart and my statements are meaningful! Yes, what I say is true everyone." double dimwit x10
slimshadey
on Apr 23, 2009
"Yet it doesn't change the word on the street. Consumers with budgets and middle class sensibilities don't want to buy Apple." Please link us to data to back that. Please also link us to PC sales minus netbooks. I dont know any corporation that has seriously deployed a netbook. Like someone else said, a netbook competes with a iPhone/iTouch. I personally think netbooks are a fad right now and that the will saturate in 2009. Not go away, they will have their place as a larger form factor iTouch type device, a limited powered/functionality mobile device. If what you say is true and the stage is set for growth then these numbers are even better for Apple because they cover the worst months and go a very long way to disprove you statement about people not choosing Apple, and it says the tax is really something people are willing to pay.
hereskilled
on Apr 23, 2009
I sometime feel for Paul. Here he has a positive Apple post and he still get's crap about it. I do wish people would just relax, all this fanboyism (be it Windows or Apple) is just so childish. Any savey consumer should know to work out what they want a PC to do, what budget they have and buy the device that matches. Be that Apple or otherwise. Obviously there are factors within the statement "what they want a PC to do" which may dictate as to whether you purchase a Mac or not. For me and the things I do a Mac would just be over-kill (and over-kill costs). That's why at the moment I'm considering a netbook. My personal daily computer usage currently consists of surfing the web.
lotsamystuff
on Apr 23, 2009
While this particular blog post is remarkably fair and balanced (aside from the inevitable smarmy comment regarding the iPod at the end), it's overshadowed by months of lies, distortions and outright bad reporting: "While overall PC sales jumped a whopping 13 percent year-over-year in January, sales of Mac computers actually dropped 6 percent in the same time period." Nice bit of "truthiness", that. Paul, for someone who consistently slams Wikipedia for their supposed lack of actual facts, it's ironic how often you lack precision and accuracy in your own "reporting". A retraction would be nice. Here's an even better idea: Quit relying on worst-case scenarios from supposed "analysts" and start reporting the truth based on ACTUAL FACTS, not wishful thinking. At the very least, you should report when your sources are A) guessing and B) usually wrong. I'm sure there are some of us who would appreciate that.
mikegalos@msn.com
on Apr 23, 2009
Wow. That's a lot of celebration for a 3% drop in year over year sales and an annual market share increase of only 0.10%.
lotsamystuff
on Apr 23, 2009
"Just to be clear, this is proof that Apple's pricing is smart." Absolutely...just as DELL, Acer and others are smart to dumb down their product line to include XP-based netbooks. In a down economy, there will always be demand for both bargain-basement and high-end products. People who appreciate the build quality, exceptional engineering and the usability & stability of Apple's OS will always be willing to pay a small premium to get it. Those who want commodity products or disposable netbooks that serve a niche purpose and run an aging 7-year-old operating system will support the low end of the market. There's no reason one has to sacrifice for the other, as the numbers clearly prove.
lotsamystuff
on Apr 23, 2009
"Wow. That's a lot of celebration for a 3% drop in year over year sales and an annual market share increase of only 0.10%. " I'm dizzy from your spin. Apple had their best non-holiday quarter ever, they have reserves of 25 Billion in cash, and they just cracked the Fortune 100. All this from a company that you and your fellow WinJihadists have written off as irrelevant, doomed, or [insert favorite adjective resembling "beleaguered" here]. A company so irrelevant that Microsoft feels the need to spend a multi-million dollar advertising campaign to discredit them, despite their minute market share. Yep. Lots to celebrate. Lift up your champagne glass, Mikey, as we toast Apple's success.
DRWAM
on Apr 23, 2009
Many consumers are awaiting better economic times before they purchase non-essential items, such as a new computer. Heck, some may even be awaiting Windows 7 before buying. I did that with XP and the Intel Mac Pro Tower. I even waited a little after their release to ensure that there were no significant problems.
Waethorn
on Apr 23, 2009
"I dont know any corporation that has seriously deployed a netbook" That's because up until only very recently, there were no OEM's offering business-class netbooks. They were all selling them with Windows XP Home Edition targetted towards younger consumers. Dell started offering the Vostro business-class model netbook (based off the Mini 10) only just like a week ago AFAIK.
mikegalos@msn.com
on Apr 23, 2009
lotsa Personal computer sales overall: down 3% Apple personal computer sales: down 3% Non-Apple personal computer sales: down 3% So, Apple sales dropped the same as the rest of the industry. Dell had a bad quarter but those lost sales didn't go to Apple, they went to HP who are the ones who should REALLY be celebrating right now. It'd be interesting to compare HP's sales growth to Macintosh total sales. At least we're spared the quarterly math lessons of how 10% share growth on 3% of the market really doesn't mean the same thing as getting 10% of the market and how much easier or harder it is to get real growth from 3% compared with growth from 96%
Mum
on Apr 23, 2009
"Wow. That's a lot of celebration for a 3% drop in year over year sales and an annual market share increase of only 0.10%." That's a lot of bitterness for the same reason.
tayme
on Apr 23, 2009
@mikegalos - Why do you even care? Your comment is meant as flame bait and you know it. Get over yourself and your blind Microsoft faith. Even you, in all of your Microsoft evangelism, should realize by now that there is room for both companies to succeed and that in all actuality, they sell different products in different markets. --tayme
DRWAM
on Apr 23, 2009
How many netbooks were sold, or what was the netbook percentage of PC sales? I guess that almost everything of this nature is a fad, only to be replaced with something more functional in the future. But as I mentioned before, about half of the attendees at my meeting of IT people and doctors, had netbooks, and now 3 of my 26 partners have one. Of course, Mac sales are on the rise in my group too. Some for family an others as they can run Windows for our imaging needs. Both Apple and Microsoft wins a sale.
Waethorn
on Apr 23, 2009
BTW: I just tried Windows 7 build 7000 (I'm NOT going on to Bittorrent sites with gawd-knows-what for malware just to get the latest leaked build) on an ASUS EeePC 1000HE (the best netbook for $500CDN so far). I liked it. I would personally set up the Origami Experience 2.0 on it if I was using it fulltime, but because it's a beta, that won't happen. If Microsoft comes out with an Origami 3.0 for Windows 7, you can bet that's going to be a good option for netbooks since it gives you a web, RSS, and multimedia overlay for Windows. There's a lot of netbook-class convertible Atom-based UMPC/Tablet PC's coming too so the touch-based stuff in the Origami software would be awesome on those systems.
mikegalos@msn.com
on Apr 23, 2009
Mum, Care to explain how not celebrating a 3% drop in sales and flat market share is bitter? I mean you really have to set the bar low when losing sales at the same rate as your industry is cause for jubillation. Seriously. I can hear the cheer now, "We did better than half our competitors (and worse than half). Yay?"
WebGuy3000
on Apr 23, 2009
mikegalos@msn.com said: "Personal computer sales overall: down 3% Apple personal computer sales: down 3% Non-Apple personal computer sales: down 3% So, Apple sales dropped the same as the rest of the industry." But Paul just reported last week: "According to Gartner, worldwide PC sales fell year-over-year by 6.5 percent in the quarter; IDC says the decline was 7.1 percent." Is this not correct? Looks to me that their unit sales were down less than half that of the industry at large. Or am I missing something? (Please note that I don't really give a crap one way or the other - I just like to encourage a modicum of intellectual honesty in these discussions.)
chuckb84
on Apr 23, 2009
"Wow. That's a lot of celebration for a 3% drop in year over year sales and an annual market share increase of only 0.10%." Yah, Mike, usual spin. How about a longer view, and we can get that from one of my favorite Paul quotes, "Apple's market share is 1.88 percent today, and as your own math showed you, it will be 1.7 percent or lower in 2004. Why is this so hard for Mac advocates to understand? The Mac market is ending." That's from March 5, 2004. Apple has nearly doubled their marketshare since then and now makes nearly as much money in a quarter as it did then in a YEAR. In case you missed Apple is now not just in the Fortune 500, they're in the Fortune 100----for the first time ever. While the rest of the industry is pursuing nearly profitless netbooks and crippled versions of Windows 7, Apple is following a different strategy, and it is working. It was a great quarter for Apple, plain and simple, and longer term, a vindication for a strategy of innovation.
mikegalos@msn.com
on Apr 23, 2009
tayme, No. It's meant as a bit of a reality check. Read the comments here and compare the response to numbers that are the same as the average of everyone else in the industry. This is a lot of gloating for quarterly performance that's exactly mediocre.
Waethorn
on Apr 23, 2009
"Your comment is meant as flame bait and you know it." Why? Because it's entirely true? Get over yourself tayme. Just because mike puts fact into the spotlight and it's not at all as rosey red as Apple's earnings suggest, doesn't make it wrong or somehow pro-Microsoft. Nowhere in his comment did he even mention Microsoft - that's something that you brought up because the facts hurt and you only want to see what your own prejudices are willing to allow.
mikegalos@msn.com
on Apr 23, 2009
Webguy The market share numbers went from 3.26 to 3.36%. That's essentially flat. And that means Macintosh did exactly the same as everybody else. No better, no worse. Now, I understand people were afraid there'd be a drop and perhaps are celebrating that didn't happen. Fine.

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