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Apple's Notebook Marketshare Growth and High Margins

Joe Wilcox of Microsoft-Watch analyzes the latest notebook marketshare data from the NPD Group. He specifically looks at the revenue breakdown and Apple's long term decision to compete at the high-end market for notebooks.

Despite Apple's relatively modest marketshare (~10%), they capture 30% of the revenue amongst notebook manufacturers. As Wilcox puts it, "for every three dollars spent on notebooks at U.S. retail, one went to a Mac." This reflects the higher sales cost of Apple's notebooks which have an average sales price of $1471 as compared to Windows laptop average sales price of $694. Wilcox questions if the growth of low-cost netbooks will change Apple's strategy but acknowledges Apple's success with this high-margin plan.

Apple's notebook marketshare may be even more impressive in select markets. MacUser reports that Amherst College has seen a shift in computer ownership of their incoming freshman. Students in last year's and this year's incoming class are now more likely to own a Mac than a PC.

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44 months ago
I guess the MacBook is leading the charge on this one. It seems like I see more and more of them every day.
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44 months ago
Nothing beats growth, but I am afraid that the increase in sales and Mac ownership is going to cause harm to Apple's service and support, and of course QC methods which have been declining since the switch to Intel.

I would have liked to see the specs of those "average cost" laptops given that Apple's best selling model is the midrange MacBook at $1300 and that many PCs are stripped down to get to $700.
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44 months ago
AAPL is down $17/share just today!! Yikes.
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44 months ago

Apple's success with this high-margin plan.


Are Apple Notebooks High Priced... or do they have high margin... or both? This post is confusing for using these two different concepts interchangeably.
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44 months ago

AAPL is down $17/share just today!! Yikes.

Holy crap it's time to buy.

I'm seeing that the $999 area of PC notebooks is seeing a lot more refinement and features then it used to be. Anything lower then that and you are going to see budget Intel/AMD processors and integrated graphics.
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44 months ago

AAPL is down $17/share just today!! Yikes.


Bad economy is what it is. Everyone's down from my ticker readings.
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44 months ago
It is good to know that Apple's high end notebooks are doing well. I'd like to see Apple have a better story for notebooks in the $900-1200 that are equivalently spec-ed. The $700-800 PC laptop will include a DVD burner, dual core processor, ~1GB RAM, integrated graphics and at least a 120GB hard drive, the usual complement of basic ports stereo, USB), wifi. So $700 on the PC side will get you a decent laptop to cover basic user needs.

I know many people who wanted to make their next notebook a macbook, but in reality the $800 notebook met their needs, and spending an additional $400 on a macbook with a DVD burner was a bit too much.

My 2 cents. Apple needs to do a better job to hit the high end of the midrange, and you'll see apples share increase to 1:2 notebooks...and like every large Fortune 500 organization revenue and marketshare are key.
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44 months ago

AAPL is down $17/share just today!! Yikes.

How much are the merchant bank shares down?
Will they be here tomorrow (The Merchant Banks)? :eek:
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44 months ago

AAPL is down $17/share just today!! Yikes.


AAPL computers are luxury items. They just got downgraded across the board because of the worsening economy. When people are spending $4-$5 for gas, can't make their mortgage payments, and losing their jobs do you think they are going to splurge on a new ipod much less a Mac? If they NEED a new computer it will be the least expensive one they can find to get the job done.

Analysts are also thinking this could be one of the slowest Christmas seasons in a long time. How many ipods are going to be in stockings this year?
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44 months ago
well, i think this is great, and let's hope the new macbooks get here soon and continue to sell great
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