Macintosh - Market Share and User Demographics

Market Share and User Demographics

Since the introduction of the Macintosh, Apple has struggled to gain a significant share of the personal computer market. At first, the Macintosh 128K suffered from a dearth of available software compared to IBM's PC, resulting in disappointing sales in 1984 and 1985. It took 74 days for 50,000 units to sell. Market share is measured by browser hits, sales and installed base. If using the browser metric, Mac market share has increased substantially in 2007. If measuring market share by installed base, there were more than 20 million Mac users by 1997, compared to an installed base of around 340 million Windows PCs. Statistics from late 2003 indicate that Apple had 2.06 percent of the desktop share in the United States that had increased to 2.88 percent by Q4 2004. As of October 2006, research firms IDC and Gartner reported that Apple's market share in the U.S. had increased to about 6 percent. Figures from December 2006, showing a market share around 6 percent (IDC) and 6.1 percent (Gartner) are based on a more than 30 percent increase in unit sale from 2005 to 2006. The installed base of Mac computers is hard to determine, with numbers ranging from 5% (estimated in 2009) to 16% (estimated in 2005). Mac OS X's share of the OS market increased from 7.31% in December 2007 to 9.63% in December 2008, which is a 32% increase in market share during 2008, compared with a 22% increase during 2007.

By March 2011, OS X market share in North America had increased to slightly over 14%. Whether the size of the Mac's market share and installed base is relevant, and to whom, is a hotly debated issue. Industry pundits have often called attention to the Mac's relatively small market share to predict Apple's impending doom, particularly in the early and mid 1990s when the company's future seemed bleakest. Others argue that market share is the wrong way to judge the Mac's success. Apple has positioned the Mac as a higher-end personal computer, and so it may be misleading to compare it to a budget PC. Because the overall market for personal computers has grown rapidly, the Mac's increasing sales numbers are effectively swamped by the industry's expanding sales volume as a whole. Apple's small market share, then, gives the impression that fewer people are using Macs than did ten years ago, when exactly the opposite is true. Soaring sales of the iPhone and iPad mean that the portion of Apple's profits represented by the Macintosh has declined in 2010, dropping to 24% from 46% two years earlier. Others try to de-emphasize market share, citing that it is rarely brought up in other industries. Regardless of the Mac's market share, Apple has remained profitable since Steve Jobs' return and the company's subsequent reorganization. Notably, a report published in the first quarter of 2008 found that Apple had a 14% market share in the personal computer market in the US, including 66% of all computers over $1,000. Market research indicates that Apple draws its customer base from a higher-income demographic than the mainstream personal computer market.