Apple's Marketshare

It’s easy to make fun of Apple for having such a small share of the computer market -- I’ve done it myself a few times -- but when you look at revenues and profits, it becomes clear that Apple is not only wildly successful, but arguably more successful than many of its competitors, especially considering its market share:

From Can Apple Take Microsoft in the Battle for the Desktop?:

Quoting RDM:

While Apple is cited by Gartner and IDC as selling around 5% of all the computers in the US, it isn’t obvious that Apple’s 5% share is the cream of the market; it’s actually worth more than the same or larger percentage of shares held by rivals.

There were 9.8 million Macs sold in the last two years, up from 6.2 million in the previous two year period. Those numbers don’t compare with the stunning volume of PCs shipped by HP and Dell--which each sold 38 million PCs in 2006 alone--but Apple’s profits do.

In the forth quarter of last year, HP and Dell combined sold 10 times as many PCs as Apple in the US, earned 5.5 times as much revenue as Apple, but together only ended up with 2.2 times as much net income as Apple.

In other words, Apple earned nearly half as much net income with its 5% share of the market as HP and Dell together, with their combined 55% share of the US PC market: $1 billion for Apple vs $2.2 billion for HP and Dell together!

From Market Share vs Installed Base: iPod vs Zune, Mac vs PC:

Quoting RDM:

In the final quarter of 2006, Apple earned $7.1 billion in revenue, compared to Microsoft’s $12.5 billion in total revenue. Yes, that’s right, Apple brought in more than half as much money as Microsoft, despite Windows owning 98% of the PC market.

Even stripping Apple of its iPod revenues, which PC pundits love to do, the company still earned $4.4 billion on its Macintosh business, over a third as much as Microsoft brought in from its entire Windows, Office, and server operations combined. Apple’s 2% of the PC market doesn’t seem so small anymore.

Of course, Microsoft actually lost a lot of money on all of its consumer electronics products, so looking at profits, Apple earned $1 billion compared to Microsoft’s total $3.4 billion in profit.

Posted by Anthony on 2 replies


01. Apr 4, 2007 at 02:25pm by Kev:

My wife and I recently purchased a new 20 inch iMac and it’s a great machine. Bright and crisp display, great wireless keyboard, mouse and remote, and of course OS X is slick also. This is the first new Mac that I have owned; I inherited some hand-me-downs that ran OS 9, and there’s just no comparison. The iPod is a really great way for people to get into using a Mac, because if you can use an iPod, you can pretty much have a good head start using the Mac. At least you will already know iTunes, and since a lot of the pre-loaded applications are similar to it in terms of usability, the learning curve is low. They sure know how to innovate and market their products...

02. Apr 23, 2007 at 02:01pm by Stein:

see my only issue with all this is

anything that’s looked at or touched by mac is pure trash

I can’t stand anything made by them, can’t stand how it works and can’t stand how it looks

mostly it’s how it works, at school we had lots of mac labs...and I had to work on them for soem classes

and every single one was absolutely terrible

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