Reports: Apple’s U.S. Market Share Now 8.1%. Or is it 6.3%?

Interesting comments bout business and apple “share”, but here is what I really think is happening. 2 issues.

First, MS is embedded in the “workplace” - Why? Because the goal of VP of IT is to keep his department BIG - more people at higher salaries means more power and higher pay. Given choice between 2 OS’s, one which takes one support person for every 10 machines, and one which takes 1 support person for every 50 machines - which will they pick? MS of course. More support needed, more people needed, MS certified engineers needed, higher salaries - net is more power and pay for the manager.

2nd issue is that people used to be uncomfortable with having 2 different systems at home and work. OSX (with Parallels, Vmware Fusion or Bootcamp) makes that issue go away. You can have the machine that gives no problems, and still run the familiar MS stuff if you have to, and with the OS as a single file, even if your MS gets totally infected - you just go to your last snapshot and you are back to where you were - no “reload your OS” when you are running MS on a Mac.

I can tell you from experience - I am a small ISP, and even though Mac users are 20% of our customers, they account for less than 1% of our trouble calls.

Guarantee - people that love Macs grew up on PCs and switched because they wanted to. They mostly have many hours in front of the screen of MS machines. People who hate Macs (i.e. Dan), when asked the question “How much hours do you have in front of a Mac?” invariably answer none. How can you have an opinion when you haven’t even tried it?

So Dan - how many hours have you spent in front of a Mac?

As a freelance computer tech, out “in the trenches”, if you will, I have a few observations.

I’ve used Macs for my own work for the better part of 14 years. I’m not a frothing-at-the-mouth True Believer, and I have a strong tendency NOT to proselytize platforms. (i.e. I’m not much of a fanboy.) But, I can’t help but notice a serious wave of discontent among my PC-based clients, regarding the non-stop need for anti-virus/spyware updates, and the glitches they seem to suffer regardless of how diligently they DO update. And how, without any prompting on my part, they want to know more about that “other platform”, because they’ve simply had it up to here with what they’ve been using.

This is Apple’s ace in the hole. Once asked, do you really think I’m going to trash-talk Macs?

As far as Vista goes, I can only say that Apple could not have created a better sales vehicle; every NEW PC I’ve had to set up which came loaded with Vista was “interesting” in the sense that I’ve never seen a new PC operate so sluggishly out of the box.

I chalk it up to all the Legacy code MS has to drag along for the ride with Vista. Ironically, this is the end-product of being the Dominant Platform for so long. Windows has been the 1000lb gorilla for so long that certain restrictions rear their ugly head; if Large Corporation X’s custom-made app doesn’t play nice with the most-recent Windows upgrade, there’ll be Hell to pay, and word will certainly get around. So, MS obliges, but this has a cost in terms of software bloat, hardware requirements for using the latest n’greatest version of their OS, and so on.

Apple took the seemingly hard road of ditching wholesale their “classic” OS (which upset me as well at the time, while quietly understanding that this was necessary to Move Forward). But now, Apple might find itself in the catbird seat: a near-bulletproof OS, with about seven years under its belt, versus an overweight, not-quite bulletproof OS, which runs ponderously on NEW PCs, never mind upgrading older ones.

This one’s a no-brainer, folks. Apple might not be set to take over the world, but they don’t have to. It just comes to *them*, a few percent at a time, which is plenty. And Buffalo Billions is practically doing half the work for Steve.

Folks -

There is no debate about Apple’s enterprise presence.

Our small IT services company has helped companies of all sizes, including a well-known Fortune 500 company, integrate Xserves in their data centers. It is compatible on every front in that environment: Works with HP OpenView, plays nicely with AD, or can be an Open Directory (like AD) master, offers fairly granular ACLs, can be configured for VPN, web, mail, FTP, etc.

If my company is doing this kind of work, I would bet money that others are as well.

Enterprise is not lost on Apple, and Apple is not lost on enterprise any more.

End of discussion, as far as I’m concerned.

The MS timeline since 2000 is depressing. Me sucked, 2000 and NT sales saved them, XP was a great product because it had to be, server 2k3 was fantastic too (imo) but now Vista sucks and it does so not because it is so much worse than XP but because it’s NOT better.

During that same period Apple was fighting out of the 90s hole. XP had to be good because the Mac OSX released at nearly the same time was solid as hell. Gimped as the were by a flawed processor they still increased market share, and now they are running on the best hardware for the market (sorry AMD fanboys). Realistically the product for Apple has changed completely from what it was 7 years ago. MS can’t say that, and their business is innovation.

Also, MP3 players have shorter lifespans than computers because of ever increasing capacities. If people were happy with an old ipod they are probably going to buy a new one.

@Dan in Boston:

Apple’s strategy is to make the best computer available. Because of that mindset, Apple finds itself in the best position possible: they don’t compete in the PC commodity market that other manufacturers are forced to.

Apple makes great stuff, and sells on merit, not price. While struggling Dell is moving to Wal-Mart (where low prices matter more than anything else), Apple continues to sell wonderful products to consumers who only want the best. While Dell is busy hanging itself out to dry, Apple’s coffers overflow with record profits, profits earned from innovative, quality products.

Good luck with that whole Vista love-fest thing you’ve got going on, and keep living the update, patch, virus/spyware, lather, rinse, and repeat lifestyle.

Dan is just trying to push buttons guys, he doesn’t really believe in everything he says. I do find it amusing though so his finger is working.

You see,

No one likes a monopoly..

..unless, you have an artist, visionary, master architect & digital lifestyle guru like Steve Jobs, at the helm. Apple is one predator that I am, along with millions of other people, more than happy to see it unleash its creations which are not only beautiful, but dominate most facets of technological excellence, innovation and ease of use.

Having worked in the Apple channel for some years now, and using a range of Macs & Windows PC’s, it’s clear here who the Master is and what an often flawed, stealth apprentice, Microsoft and it’s PC clone buddies are. I cant think of anything that has made me go “uuuu… ahhh…. ohhhh my…. woooooow”, from what MS, Dell or HP have released thus far. The guys at Redmond definately always seem to have a tough time using their ‘photocopiers’, resulting in uninspiring, error prone yawnware, that makes you want to thrust your fist into that screen. I’m sure every windows user has been driven nuts at some point, for one reason or another. The difference here is that Apple has from the ground up, designed in-house, complete software & hardware solutions that work harmoniously, synergistically and more than entice the end user. By consistently pushing the envelope, Apple is enhancing productivity and altering the way we document and navigate our digital lives.

The bottom line is:

Apple Inc. has a Soul. Microsoft and it’s cronnies are are somewhat evolved, cash stuffed calculators - without a soul. Jobs and his troops have a vision, and have created an eco system of perfection - with beautiful form factor and liquid-like smooth interactivity , with new family members on their way. Jobs and his brilliant engineers, along with his impecable taste, have inundvertandly, but rightfully so, created a religious following.

I solute a champion oh and ah Apple…

KEEP IT UP!

Well Dan, it’s terribly apparent you have no answers for all these other well reasoned posts… You are a one topic guy - Apple will never gain in corporate penetration, only time will tell…have a lovely day, plug in your Zune, download your security patches, call the help desk and keep reading those articles from 1987!

Microsoft has created a huge “Cottage Industry” and the folks who just ‘Love” Microsoft are only protecting their ‘Cottages’ which equates to their careers. You folks who don’t want to get left behind should get smart and endorse both MS and Apple for their individual strengths. You older guys who don’t will just get left by the wayside. Hopefully, the younger ones will get the message and strive to understand Mac, Windows AND Linux strong points!

Best of luck with that viral strategy Lionel. Maybe 20 years from now Apple will crack double digits in PC market share. I got a kick out of reading this story from Fortune talking about Apple making inroads in the corporate market….in 1987! Enjoy!

http://money.cnn.com/magazines/fortune/fortune_archive/1987/11/09/69822/index.htm

Oh Dan from Boston… I’m glad that Vista works for you on your 2 computers at home. For those of us who have to purchase and support hundreds of systems, well, lets just say there is a reason that MicroSoft was forced to allow computer makers to keep using XP. Its because people in my position that have to take care of way more than 2 systems know that Vista is trouble.

As I’ve said, people who are IT professionals have seen an uptick in Mac usage. Calm down, Macs aren’t about to take over the world! Take a deep breath, it will be OK, no one is gonna force you to use a Mac anytime soon. It just won’t kill you to pat your nearest Mac geek on the back and say ‘hey I hear Apple is doing good these days, groovy!’.

Even as an ardent MicroSoftie, you have to appreciate that new features wouldn’t be showing up in Windows nearly as fast if it weren’t for some good healthy competition.

I hate to burst Dan of Boston’s bubble but most large companies have no plans to migrate to Vista for quite awhile. Just becuase MS releases SP1 Vista won’t turn heads. Using XP SP2 with problem-free applications is what enterprise wants right now, not responding to new issues from a new OS that will increase the overhead costs of existing IT hierarchy for said enterprise.

Well, bloviate all you like. This clown thinks whatever strategy took my 50 shares of aapl, bought at $11, to its present level to be working quite well; I have watched all three children abandon their disease infested laptops for Macs; and my IT department increasingly troubleshoot our UNIX based mainframe with Macs…it’s not a grand plan, just a viral one.

Sorry Lionel, it’s not apoplectic, it incredulity at the rampant BS spewed by Apple acolytes. I’m sure it’s perfectly reasonable to expect that Apple, after 20+ years in the PC business, and a market share still in single digits, will take over the computing world. :) What’s funny is how everything is spun as some sort of grand strategic plan on Apple’s part, as if they never make any missteps. Apple won’t make inroads in the corporate market because the company’s hardware is too expensive relative to PC’s and MSFT is too entrenched on the office and server software side. Thus the company’s “strategy” is to go after the “vast untapped” personal market. Why didn’t HP and Dell think of that? Oh, that’s right, they did. Marketing cachet aside, AAPL isn’t even really a player. The company is competing with Toshiba and “Others” in this space, and that’s where AAPL will be for the forseeable future, at least in the PC space.

@Dan, Boston. I’m a software engineer and lifelong Windows/Linux PC user, who’s been using a Mac for 18 months. I couldn’t be happier. It’s by far the best OS I’ve ever used for my work and for non-work computing.

Macs moved onto my radar about three years, and in that what I’ve noticed whenever Apple’s increased market share is mentioned are the same comments:
1. Macs are toys and you can’t play games on them (often in the same sentence)
2. They’re not compatible.
3. Be happy with your X% market share.

1. is just too ironic to comment on. No one ever says where the compatibility problems are (sure there’s no OS X native AutoCad, but that’s a vanishingly small percentage of users), and 3 has changed over the past few years like this:
3 years ago “be happy with your 2-3%”
2 years ago “be happy with your 3-4%”
Last year “be happy with your 5-6%”
This year “be happy with your 6-8%”

See a pattern?

As for “enterprise”, our CEO, CTO and CIO and network admins all use MacBook Pros, leaving Windows machines for the middle managers, IT staff and HR.

“6-8″% market share is GOOD in a way. This shows that Apple has plenty of upside potential.

As one analyst put it, if Apple increases to double digit market share (which is possible by its growth rate) Apple will DOUBLE in size and the stock price will follow.

How is Dell going to double its market share? What is the upside potential in Dell Stock? (Overseas sales is a possibility but Dell products win only by PRICE and overseas it’s going to face a slew of even lower priced Asian competitors).

Apple stock has grown 2300% in the last 5 years. Dell has grown 2.4%.

Apple growth is continuing on all fronts , numerous OsX upgrades in the time for MS to put out Vista, upgrades to the Ipod line (ipod market is not saturated as people change their ipods or keep several models), etc. plus rumored devices in the oven from subnotebook to PDA to Iphone Ipod touch Apps. Apple stock just has plenty of upside.

Also OsX Leopard allows WINDOWS to be run on macs via bootcamp (beta in Tiger) and there’s also virtualization software. Unfortunately for stockholders steve Jobs doesn’t emphasize this as I think putting what he believes inferior software (Windows) in his beautiful boxes probably pains him, but if word gets around more many more people will be buying macs.

Yes, Microsoft and PC makers have made a lot of money for their stockholders in the past, but today what is the better stock play?

Yes, apple fanboys can be a bit too much, but hating Apple just loses you money if you’re a tech investor.

I guess the reverse question is valid Dan: have you ever tried a Mac? If you had, you’d know they absolutely compatible with most every network extant. You really don’t know what you’re talking about do you?

I have Vista on my desktop. I prefer my Mac laptop but it can also run MS. Whatever I want to do. And that’s the point Dan old buddy…people like options. And you are missing the other point - Apple isn’t targeting business users. However, I find it utterly charming how apoplectic PC fanatics get when discussing this.

Do any of you clowns bashing Vista actually have it, or are you just parroting what you’ve read or heard? I have Vista on 2 laptops and it runs fine. You fanboys need to get a grip - corporations will switch to Macs? Not any company that cares about compatibility and their bottom line. The unbridled Apple fanaticism among most of the commenters here is hilarious. “6-8% MARKET SHARE!!!” I guess world domination is next. :)

Stock Return last 12 months:

Microsoft 10.4%

Dell: 17%

Apple: 133%

Plenty of debate about merits of Microsoft PC and Apple PRODUCTS and both camps favor their own hardware but in the last 12 months if you wanted to make MONEY in stocks guess which you should have picked.

Dan from Boston. SP1 fixing Vista’s problems?!? Hmmm. That would be like the Army Corps of Engineers using Band-aids to fix the levees in New Orleans. C’mon man. Get a clue. Vista is a horrible product that came in way over budget, and over deadline. Can you say “Albatross”?

Hey guys don’t forget software. Apple has been quietly releasing software for one niche after another while improving-reinventing the target niches it already occupies. And best of all it is seamlessly integrated for the most elequant user expleriance.

I’m not too sure that Dan from Boston is completely in touch with where things are moving in the business sector. Even the most ardent MicroSofties are steering clear of Vista and no one expects SP1 to really make much of a diffence. It’s not just that Vista is bad, and people are calling it “ME part 2″, but more that ‘XP is good enough’ so MicroSoft is in a position of competing with MicroSoft. Now, I don’t think anyone thinks that Vista will kill MicroSoft by any means, its just not going to turn out to be the OS X killer that Redmond had hoped for.

At least at my small company, we’re starting to see people request Macs in droves. I’d say about 1/2 of new machine requests are for MacBooks now. While Vista being such a disappointment has helped, I’d say the biggest thing thats getting former windows users to switch is Parallels. My helpdesk guy sets them up so they have a taskbar and a dock and all their Windows apps run happily alongside Mac apps.

I realise things are quite different in big companies where change happens at a glacial pace at best and people like Dan are thinking its 3 years ago and haven’t caught up with current trends like Parallels. But like other emerging technologies like Linux, you’ll often see trends start in smaller startups and trickle their way up. From what I’m seeing, tho, expect to see decent growth in Mac sales for the foreseeable future.

Quite simply, Apple’s strategy has not been to go after the saturated Enterprise market, but rather the vast untapped PERSONAL computer market. And the strategy is paying off more and more every year. Ultimately this market will be much larger than the Enterprise market, which, more and more, is switching to cheap White Boxes that are undercutting Dell sales. But the last thing people want in their living rooms, bedrooms, and kitchens, are dumb terminals…

Apple releases data by operating segment: Americas, Europe, Japan, Retail, and Other Segments. There is no US-specific data. Also, I believe Apple’s released data is for units sold, not units shipped, which is what Gartner and IDC are reporting. The other companies probably do the same thing.

Apple bigotry notwithstanding, who really believes Microsoft is going to finally get Vista right? Whereas Apple rolls out flawless OS with precision. And now that Macs run MS natively, the smart money buys a Mac. Market share will continue to grow.

It’s easier to grow off of a small base - much harder for Dell and HP to move the needle. There’s nowhere for Apple to go but up, especially with a captive audience of sycophants who will lap up the latest “elegant design.” Gloat about that 5-6% market share. Now that iPods have saturated the market, Apple is going to need PC sales to keep goosing growth. That’s a losing proposition, especially after Vista SP1 comes out and companies start switching from XP to Vista. Apple’s about to become a victim of their iPod success. PC’s are a commodity business (and enterprise sales are king) and just about everyone that wants an iPhone has one. Haven’t heard much about AppleTV lately - wonder why?

How is it that the ‘06 figures don’t even match?
Shouldn’t those figures have been adjusted to the company’s actual numbers from last year? (It may help to determine which is more accurate.)

Either way Apple’s share is growing. We will get better numbers next week.