Macs Defy Windows' Gravity

From eWeek

Consider this: Apple's retail market share is 14 percent, and two-thirds for PCs costing $1,000 or more.

Should I repeat those numbers? For the first quarter, Windows notebooks had "zero percent" growth year over year, Stephen Baker, NPD's vice president of industry analysis said. By comparison, Apple notebooks had "50 to 60 percent growth."

He remarked: "iMacs are growing and the Windows desktop ain't. No matter how you look at it, Apple is outperforming Windows." Apple's market share in what NPD calls the "premium" category, or laptop and desktop PCs selling for $1,000 or more, is nothing short of phenomenal: 66 percent. That's right, two-thirds.

Apple's success above $1,000 defies some of the conventional retail thinking about PCs, where the emphasis is on lower pricing and greater features. "Consumers don't care about features," Stephen asserted. "People see a value proposition in an offering that gives them a great experience."

Stephen said Apple appeals to the right segments, like multiple-computer households. Consumers that are buying a second, third or even fourth PC have different buying priorities, such as ease of use.

But the retail stores make a huge difference. "Apple has got better distribution than it's had in the last 15 years," Stephen explained. "They're in the right spot right now. There's the iPod advantage. But the big thing is the stores."

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