Mac worldwide market share hits 3.5 percent in Q2 2008

Well, it's that time of the quarter again. With Apple today announcing its quarterly results, we can tally the company's market share vs. the rest of the PC market. Once again, Apple recorded a blockbuster quarter, selling a record 2.5 million Macs, a growth rate of 41 percent year over year. (The PC industry, by comparison, grew about 15.8 percent.) Of course, as has often been pointed out, huge growth is much easier when you're small. Nonetheless, let's see how it pans out this quarter.

As always, I average the IDC and Gartner numbers to arrive at overall worldwide PC sales and market share. Gartner reports that PC makers sold 71.9 million PCs in the second quarter of 2008, a 16 percent bump from the same quarter a year ago. IDC, meanwhile, says that 70.6 million units were sold, a 15.3 percent jump. The average of those two numbers is 71.25 million units.

The top five PC makers worldwide are:

HP:    13.2 million units (average, IDC and Gartner)
Dell:  11.4
Acer:   8.4
Lenovo: 5.6

Apple, again, sold 2.5 million Macs. Do the math and that works out to 3.5 percent market share for the quarter.

This represents yet another quarter of steady gain for Apple:

Q2 2008: 3.50 percent
Q1 2008: 3.26 percent
Q4 2007: 3.12 percent
Q3 2007: 3.19 percent

But you can see how huge growth doesn't translate to huge market share gains. Even if the PC market stood absolutely still, and it doesn't, 40 percent growth on 3 percent can only get you so far. About one quarter of one percent, to be precise.

Discuss this Article 129

cesjr
on Jul 21, 2008
Paul continues his love affair with worldwide market share. Also, Paul, someone pointed out recently that the overall PC market share percentage includes Apple's growth. That doesn't seem right. You need to take out Apple's sales then see how much Windows' OEMs sales increased. Of course you'll never do this.
johnbaxter
on Jul 21, 2008
Thanks, Paul. Now I can feel properly restrained when I read a story or two in the Apple-following press. All I really care about, though, is that Apple makes enough profit that I can continue using MacOS for most of what I do. (And I just ordered a Vista upgrade package, as my need to run XP should end in a couple of weeks with an upgrade of our firewall. That will leave me with 0 XP and 2 Vista--much nicer than one of each.)
weedmonk
on Jul 21, 2008
Wow...3 and half percent. Snow Leopard should be add another .025 hopefully.
johnpapola
on Jul 21, 2008
#1. You've never even once demonstrated why anyone should care about worldwide share. Never. #2. You've never even once proved how "huge growth is much easier when you're small." I believe network effects make the exact opposite true in the computer business. #3. Your "analysis" which I could best describe at "meaningless 3rd grade arithmetic" doesn't address Apple's profit or compare it to other PC makers. I think we all know this game. Apple's worldwide share is the smallest marketshare number of all. That makes it perfect fodder for pandering to the winCabal... which makes it perfect for driving traffic. How lame. Eat it up though, "weedmonk" and rest. Nobody else with higher brain function looks at Apple performance in this crude, pointless way. They notice that Apple's 3.5% share makes them more money than Dell. And developers look at the trend lines and the growth rates, which is why WWDC sold out this year. Use your brain, Paul. I know you have one. We all have calculators.
Snakedoctor1
on Jul 21, 2008
tayme
on Jul 21, 2008
Simply said...congratulations, Apple, on another successful quarter. Regardless of how you carve up the numbers; this, along with the MS quarterly earning statement tells me that the PC industry is not hurting from the supposed "slow economy" that we keep reading about in the newspapers. --tayme
DRWAM
on Jul 21, 2008
Good post tayme. Doc
knil
on Jul 21, 2008
Hi, this article may be of relevance here. http://www.stuff.co.nz/4626722a28.html
runner7775
on Jul 21, 2008
@johnpapola Market share is much easier to gain when you're small because if you are selling 1 million computers one month and then selling two millions computers the second month you have just posted a 100% increase, obviously. Dell or hp selling another 1 million, thats great, but its not that kind of phenominal growth that Apple is experiencing. And besides Apple is small in the computer side of things but they are obviously not a small unknown company that would have trouble advertising.
Snakedoctor1
on Jul 21, 2008
@knil I stopped reading when the computer genius could not figure out that he could use a free IMAP gamil account to move his email from his Outlook/POP to his Mail/POP account. Or even a 60 day trial of MobileMe IMAP. Maybe he should stick to his day job.
MaryW
on Jul 21, 2008
Thanks Paul. I appreciate that you take the time to average the Gartner and IDC figures. In an imperfect science, it seems like the right thing to do. However ..... "Of course, as has often been pointed out, (by Paul!) huge growth is much easier when you're small" It's time for you to step up to the plate ... i mean post a comment... and actually explain this particular argument in relation to Apple's market share. Hint. If you buy a whole stack of 'penny shares'.... and a rumor hits the market ..... and next day your shares are worth .... TWO pennies ..... that is not the same as suddenly selling twice as many products. So.... Please explain how this "huge growth" is so easy when you are little ol' Apple in the big bad PC market. When the corporate IT world is handcuffed to Microsoft. When all the PC OEMs, may not actually be cheaper, but certainly have many less expensive models in their range. When Apple has fewer sales outlets in the less mature tech nations (the ones that are actually driving the growth) When, 90% of consumers just replace their PC ... with yet another PC (Another hint: Why do you think the 'Get a Mac' campaign targets PC users so strongly?) Paul, I am not chastising you but, sometimes your reasoning... especially when it comes to the numbers game is a little suspect. A lot of us here would really like to see an answer to my question. Perhaps there are some factors that we have not considered.
Lindy
on Jul 21, 2008
Is this www.stevejobsjiltedlover.com or winsupersite????? Could we get a focus on the Windows world and drop the Apple hate sometime soon??? Its bad enough that Windows IT pro is so thin these days I mistake it for a magazine insert add. Snap out of it Paul, your feeding the Apple press machine and not hurting it with your rants these days.
daveinla
on Jul 21, 2008
conclusion of the story: the Mac is still the main $ maker for Apple (for the joy uf us !), the ipod has still not peeked, nor has the iPhone of course. So still some good qurters to come for Apple. As said by an financial analyst, the most amazing part is that the Mac is making big $ for Apple, and it's also where its prospect of growth is the bigger: "every additional 100,000 Macs sold adds about $140 million in sales and 2 cents a share in earnings" Knil: Yep unfortunately Macs are machine that run software. As such they behave badly once in a while. But I can tell you from years of use of both OSX and XP/Vista, the fix is usually simple on OSX and will ALWAYS leave your files unaffected. Reformat/reinstall doesn't exist on the Mac. And even if you're a noob, there still are these genius bar to help you restore things for free (one of the big drive for people to switch). Having the peace of mind to know that whatever happens there always is someone to help you not far is priceless.
MaryW
on Jul 21, 2008
@runner "because if you are selling 1 million computers one month and then selling two millions computers the second month you have just posted a 100% increase, obviously. Dell or hp selling another 1 million, ... etc etc" That's what I am talking about. Where do you guys get this, perpetuating, completely flawed logic? That said, thanks runner, you make my question even simpler to understand. What is harder to do? Increase your sales by 100% Or increase your sales by 17.5%
daveinla
on Jul 21, 2008
Oh and being small is all relative... When you sell millions of computers are you still considered small ?? Voodoo PC have < 1% market share, so they should be growing faster too no ? Maybe they do actually !
WebGuy3000
on Jul 21, 2008
I'm not that concerned with the global market share metric, but some people seem to like it, so that's okay. I'm generally more concerned with earnings growth, fat profit margins, and quality products that people seem to want to buy. Apple's got all those in spades. Microsoft, BTW, also has good earnings growth, fat profit margins, and good products, so that's okay too. This is no a zero sum game between Apple and Microsoft. Both can grow, both can prosper. For Apple to win, Microsoft does not have to lose. Remember that. The odd thing to me is that a lot of people talk about market share as if it correlated to some inherent superiority. It does not. If it did, then Bud Light would be arguably superior to Anchor Steam, Folgers somehow intrinsically better than Peets. In my experience this is not the case. In my view it is not Microsoft that should be worried about the Mac (they make a boatload of money off of Office Mac and retail Windows sales for virtualized installs) but Lenovo and Acer and folks like that. Microsoft gets revenue from every Windows PC, just like Apple gets the revenue from every Mac sale. It's the hardware vendors slugging it out in the trenches that are getting pinched.
Waethorn
on Jul 21, 2008
Just goes to show you - US Mac marketshare means very little in the global picture. Likewise, it shows you there are more suckers in the US than elsewhere in the world. ;)
runner7775
on Jul 21, 2008
MaryW, Let nothing I said take away from Apple's accomplishment. I think at this time the momentum Apple has gained from the perception that Vista is absolutely horrible(i like it) and the funny and simple switcher ads(and all the press attention...not that its completely unwarranted) are driving their sales. But I'm no expert and I'm not going to act like one. And I probably shouldn't have said market share bc the rest of the industry is growing too so the market share wouldn't go up quite as much. It's not easier per say but it would look like huge growth if you look at he percentages. @daveinla yeah definitely relative but small I suppose in the area of computer oems(Dell and HP are selling TONS of computers). Their influence has helped the other manufacturers design prettier computers(dells m1530 and 1330 are pretty sweet).
johnpapola
on Jul 21, 2008
What a great thread. Paul, take note here. These are all reasonable requests for expansion on the theories you state as fact. Many of you know I've attacked these posts with massive breakdowns of why Worldwide share is meaningless except as a trend indicator. I've had these same discussions with Paul in email directly. His response has been this: "I just like worldwide market share" Hard to swallow, right? MaryW, your post is especially great. Those are just a few of the reasons it's not "easy" for Apple to grow. Add to that the software network effect. This can't be understated as it was one of the driving forces behind the meteoric rise of the Windows PC. Everyone's mantra in the early 90's was "IBM Compatible". That was the mindshare that drove PC adoption and drove developers to Windows, which drove more PC adoption etc, etc. How Paul can overlook this and continue to play so fast and loose with things is beyond me. It sure does play well for the Apple-bashing crowd though. that's honestly the only thing I can conclude. Paul is pandering. He seems too smart to be capable of such brain-dead, rainman-like repetition quarter after quarter of the same broken "analysis".
johnpapola
on Jul 21, 2008
In other news.... Ed Bott seems to find a crapware-free PC to be "amazing". http://blogs.zdnet.com/Bott/?p=501&page=1 Ed's great, but is this really the state of the PC industry? Selling a machine that's not polluted with junk is cause for excitement? No wonder Apple's growing so fast, especially among consumers where even their world-wide share is estimated to be 10% or more.
Ocean
on Jul 21, 2008
How is Apple moving all those PC's? Which country buys most of them? Whats it's share in that country?
DRWAM
on Jul 21, 2008
Wae and Dipsh, my nephew did not want a Mac, so I configured an HP dv9700t as we had a $500 off coupon and he wanted a 17in screen, so I got the Intel(R) Core(TM) 2 Duo Processor T8300 (2.40GHz), 4GB RAM, 240GB 7200RPM SATA Dual Hard Drive, Windows Vista Home Premium with Service Pack 1 (64-bit) and a bunch of other stuff, all for around $1,275. He'll love it. My older brother was happy to save $500, but our mom wants to pay for it. She'll be able to afford as I'm buying her a new car this year. Dipsh, I want to get the "C" class, as she needs a small car.
Ocean
on Jul 21, 2008
I found this interesting: >>It appears iPod sales have reached a state of equilibrium with approximately 10 to 11 million units sold per non holiday quarter and 20 plus million during the holidays. Thus far, the iPhone does not appear to have cannibalized iPod sales, though the lower-priced iPhone 3G may change that beginning with the current quarter.<<
kalewallace
on Jul 21, 2008
@Lindy This is Winsupersite. Paul writes about stuff that affects Windows users. Last time I checked, Windows runs on a computer which is being counted in the numbers Paul is referring to. Like I said before, if you don't like it, don't read it or at least don't b__ch and moan about it.
johnpapola
on Jul 21, 2008
@kalewallace, How exactly does repeatedly posting about the worldwide marketshare of Apple's macs affect Windows users? Oh. Right. It doesn't in any way, shape or form.
drylight
on Jul 21, 2008
That makes you Windows guys a bunch of lemmings.
johnpapola
on Jul 21, 2008
@Waethorn: "Just goes to show you - US Mac marketshare means very little in the global picture. Likewise, it shows you there are more suckers in the US than elsewhere in the world. " Yeah... I guess that's why Apple's growth was 4 time the PC industry in Europe, almost 5 times in Japan, and 2 to 3 times in Asia Pacific. (from a summary at ars). And I'm sure it makes tons of sense to look at marketshare numbers that include PCs sold for everything from retail POS to niche industrial manufacturing applications. But then, that gets back to the whole "deriving actual meaning from numbers" which neither Paul and certainly not you are interested in as it pertains to Apple.
lilserenity
on Jul 21, 2008
Interesting stuff. I use Windows as well as a Mac. I'm not sure if that makes me a lemming, Maybe half a lemming perhaps, perhaps I sould grow some green hair like a Lemming. (as in the game) Or maybe I won't be defining my person and being through what computer programs I use, but rather the other things like hiking :-) I personally take from this everyone is still doing well, even in this time of suposed economic turndown.
Mum
on Jul 21, 2008
"Oh. Right. It doesn't in any way, shape or form." Hehe... Love the subtle irony between the sentences.
befuson
on Jul 21, 2008
Wow. To John & the rest of you morons asking Paul to explain why its easier for a small entity to post huge percentage gains - learn math. Seriously, most of you seem as if you've had some schoolin', so you should still remember division and percentages, right? Amazing.
heran
on Jul 22, 2008
Some iFriends asked why mac affect Windows users. Amazing, isn't that mac "do windows" too? "It doesn't in any way, shape or form." yes, maybe apple can stop the silly switch ads now.
WebGuy3000
on Jul 22, 2008
Seems to me that the point of contention here is not with the math, but rather with the terminology that's in play. Obviously, when you have a small market share, there's a lot more potential for growth than when you have a massively dominant position like Microsoft's. But I would argue that growing any business by 40% YOY cannot rationally be described as "easy."
RunTimeError
on Jul 22, 2008
What tayme said.
dancostea
on Jul 22, 2008
Paul, please focus on Windows more, like the others just said earlier. Apple makes wonderful products, trend-setting devices, but this is not an Apple forum. I'm reading your sites since 2001 looking for info regarding Windows. You say that Apple is relevant, and for this reason you have to review some (or all) Apple products. Fine. May I suggest to do that on that long forgotten Internet Nexus blog? :P Regards, Dan
johnpapola
on Jul 22, 2008
@befusion, "learn math" isn't a response. MaryW and myself have laid out many reasons why growing an alternative platform computing business isn't "easy" in a world dominated by Windows. You've offered nothing to refute that and neither has Paul. There's nothing worse than zealots making very bold and clearly arguable claims as fact and then making no effort to back them up. How about "learn the scientific method". Or "learn business". As WebGuy said, growing any mature business by 40% YOY isn't "easy". If it were, then the PC vendors that are smaller than Apple should be "easily" exploding their growth.
befuson
on Jul 22, 2008
Fine, John. Learn logic and reason. Moron.
gorath
on Jul 22, 2008
Oh for chrissakes. If I only sell 1 of something, then I can double my share, by selling an extra 1 item. If I'm selling a billion of something, then I'd have to sell an additional billion to double my share. Finding one more customer is easier than finding a billion. kapeesh?
befuson
on Jul 22, 2008
Thank you! Though, that still might be prohibitively difficult to understand for "some", apparently.
weedmonk
on Jul 22, 2008
@Papola I just noticed something from Ed Bott's blog that you linked. He also is plagued by insufferable Macboi's on every single blog post. They rival and surpass the variety here. Like pungent flatus, iBoi's permeate the web.
Avro
on Jul 22, 2008
@Waethorn Mac sales are going great in the US, Japan, Canada, Australia, New Zealand, the UK and Europe. Apple does not have much of a presence in Africa, South America and most of Asia. Apple is doing very well in the places where it chooses to compete and the places that for the most of us, it really matters. If I were in the car business and I looked around the world, I would conclude that the Toyota HiLux truck is the ideal vehicle for everyone. Not true.
gorath
on Jul 22, 2008
No-one is saying that either system is the ideal solution for everyone though. We're not kicking your grandmother, or passing risque remarks about your sister. We're just talking figures. Why does this seem to offend people?
johnpapola
on Jul 22, 2008
@gorath & befusion & the rest.... First of all, "befusion", you're insults only make you look even more pig-headed and ignorant. You come at us with insults, are confronting with debate and retort with "moron". Pathetic. You people have such arrogance and certitude it's truly amazing. You're making this very arguable claim and backing it up with nothing. Just fourth-grade Lemonade-stand math. This isn't simple arithmetic, though perhaps that's all you people are capable of. We're talking about rates of change and derivatives on top of derivatives in a market with many barriers to entry and network effects. Perhaps you don't know what "Network Effects" are. Go look it up. The Windows ecosystem and overwhelming marketshare has a self-reinforcing effect that makes the barriers to entry of competitors very high. And Apple isn't selling "one" of anything. They're selling millions of macs into a highly competitive and generally price-sensitive near-commodity market. There is a reason why economics and it's principals separate between Micro and Macro level scale. Market forces aren't linear. There are levels of resistance to growth that depend on the market itself and the nature of the products. Marginal growth isn't "easy" in mature markets for anyone. There are also tipping points where network effects kick in and accelerate growth. Apple's "halo effect", which is a theory and not a proven phenomenon, is an example of this. Causality vs. Correlation. Learn the differences and you'll be a hell of a lot smarter than every pundit and politician. For Apple to be growing rapidly in saturated first-world markets where Windows in 95% is NOT EASY. PERIOD. Convincing a life-long Windows user to switch to the mac which is a different interface with all new software is NOT EASY, which is what these growth numbers require. It's not like there's this massive market of first-time PC buyers in the US, Europe and Japan. The barrier to entry for Apple to grab share from the Windows market is much higher than for one PC maker to steal share from another... which is basically a matter of price. This, my friends, is what we call "thought". Looking at an issue and doing your best to consider all the variables. What you guys and Paul are engaged in by stating theories as fact and then calling people like me a "moron" for disputing them is called "zealotry" and "ignorance". You are the same kind of zealots that claim marketshare is king. Please read this paper from Wharton on the Myth of Market Share and get some friggin education on reality and business: http://marketing.wharton.upenn.edu/ideas/pdf/Armstrong/myth_of_market_sh... If the best you guys can do is "moron" I truly feel sorry for you.
johnpapola
on Jul 22, 2008
And for the record. I'm not "offended" by honest disagreement or anyone's preference. You are all entitled to love Windows and hate the Mac. You can argue reasonably that Apple's approach to products is right or wrong. But the key is honesty... not snarky, hackneyed half-truths and outright misrepresentations.
johnpapola
on Jul 22, 2008
johnpapola
on Jul 22, 2008
oops. Wrong post. sorry.
RobertC
on Jul 22, 2008
I personally think the squealing over market share is a bit infantile. I mean, the more Macs that are sold, the better it is for Microsoft given that Windows runs on Macs pretty well and Office is the most popular productivity app on the OSX platform. So Microsoft is still laughing all the way to the bank either way.
befuson
on Jul 22, 2008
John, first of all, learn to read. Its not hard, actually. Give it some time, and you'll figure it out. Probably. And you can toss around all sorts of your special and beloved marketing terms all you want. In fact, including such things alongside other pseudo-related mathematical terms furthers your facade, and probably fools many into believing that what you say is motivated by intellect, rather than ignorance and ineptitude. But the truth of the matter is, you're wrong. Paul is making a simple, concise and correct statement. He's not over-analyzing the issue. He's pointing out an obvious and very relevant aspect to the market share topic. Where he went wrong, by you at least, is in talking poorly about Apple. Because, obviously, God forbid anyone say anything negative about the company whose logo no doubt is emblazoned on the pillow on which you rest your narrow-minded and astoundingly biased noggin every night. As I've pointed out before - you're on a damn Windows site, man! If you love Apple so damn much, great. But no one really cares, least of all most here. You're nothing more than an Apple fan who simply cannot rest until every anti-Apple (save for a few - hey, even you have to attempt to maintain some semblance of objectivity on which to fall back once in a while) comment, article or thought is thoroughly "debunked" using whatever partial-truths and half-assed logic you can muster. Do yourself, and everyone else here (save for Paul and his advertisers, obviously) a favor, and go play on an Apple site.
mikegalos@msn.com
on Jul 22, 2008
@cesrjr Since Paul "Would never" do the pc share growth computation without the Mac, you can do it yourself. It's really very simple 4th Grade arithmetic. (SPOILER: It changes the growth rate by less than 1% because even big growth in a tiny segment doesn't change the overall very much) You can now put the tin foil hat back on and explain why this is a dark secret that's being hidden from the world.
mikegalos@msn.com
on Jul 22, 2008
Make a deal with you John. We'll explain why market share matters (which you ask about every time it comes up) if you'll explain why we should care about share price (which you bring up at least every third article that involves Apple)
johnpapola
on Jul 22, 2008
@Mike, You seem like a knowledgeable guy. I'd like nothing more than to have a civil, hyperbole-free debate. There can be areas where we agree and ones where we disagree. If you go to my website and read my personal tech bio, you'll see I started on the PC. I would love to have a great dialog about this. Maybe we can aim to elevate the debate from either side of the fence and show Paul what REAL analysis is. I don't disagree with him that the numbers are often used to hype the impact of the mac beyond what is rational. No question. But his focus solely on outright worldwide share is the opposite extreme. I hate "fight your extreme with my extreme" polarized debate. It's not intelligent. So if you want to temper the flamebait (OSX updates are service packs, etc), I'll cool off the aggressive rebuttals and we can really have some mental fun.

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