Apple dominates $1000+ computer market

Thu, Jul 23, 2009

Analysis, Finance, News

June data compiled by the NPD analysts reveals that when it comes to the $1000+ computer market, Apple enjoys a 91% market share.

Joe Wilcox writes:

According to NPD, in June, average selling prices for all PCs sold at US retail was $701, or $690 for desktops and $703 for notebooks. But the ASPs get more interesting when comparing Macs to Windows PCs. For all Windows PCs, ASP was $515 in June. For Macs: $1,400. Desktop Windows PC ASP: $489. Mac desktops: $1,398. Windows notebook ASP was $520, or $569 when removing all those nasty, margin-sucking netbooks. Mac laptops: $1,400.

Mac ASPs have been higher for a long time, because Apple chooses not to compete at lower prices. The real entry price for Apple computers is $999 for the white MacBook and $1,199 for either the low-end iMac or MacBook Pro. By comparison, Windows netbooks sell for as little as $199, unsubsidized, and even some fuller-sized laptops don’t cost much more. For example, HP laptops start at $349.99 after rebate.

With that in mind, Microsoft’s series of “Laptop Hunter” commercials seem pretty much pointless, but it’s not like we needed the above data to reach that conclusion.  Apple sells premium products at premium prices, and no one would ever argue that you should buy a Mac because they’re cheap.  Why, then, does Microsoft attempt to combat Apple’s growing market share by pointing out how much cheaper PC’s are than Macs?  If price is already a consideration for a prospective computer buyer, they’re probably not going to consider a Mac in the first place.

With Apple already owning the higher end PC market, analysts like to point out that Apple needs to release a cheap netbook in order to maintain growth.  But the thing is, growth isn’t just measured in market share, but also in profits – and profits are what investors truly care about.

In the simplest terms, if Apple wants to maintain growth, it needs to sell more products.  But who says that cheap netbooks have to be part of that equation?  If Apple, for example, can maintain growth by increasing its share of the worldwide mobile smartphone market with the iPhone, then who the hell cares about a margin-less netbook?


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2 Comments For This Post

  1. jane Says:

    No doubt Apple ITunes still takes the best pie of Mobile applications. I remember downloading quite a many apps each month. Just yesterday i bough a 4.99 iphone application iwound. its based on fashion magazine

  2. skips Says:

    Apple competes in the less than $500 portable network device category (ie the category that the netbooks claim to serve) with the iPod Touch ($229-$399).

    I gather that it is selling quite nicely and making Apple a net profit on each sale.

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