More to Mac sales than a halo
It's very easy to take a look at Apple's stellar fourth quarter and conclude that the long-awaited iPod "halo effect" is in full swing and move onto something more pressing, like handicapping the World Series.
Are Mac sales really soaring simply because people like iPods?
(Credit: James Martin/CNET Networks)For years as the iPod took over the digital music player market, we all wondered whether it was a one-hit wonder, whether Apple could translate that success into increased Mac market share. Millions of people who might not have used an Apple product since they spent the third grade playing Oregon Trail on an Apple II were re-introduced to Apple through the iPod, and for the last year or so, they would appear to be trying the other things on the menu.
Apple announced Monday that Mac shipments were up 34 percent during the last quarter, the most successful period of computer sales ever for Apple (neé Computer) Inc. Overall, Apple sold 2.2 million Macs, 400,000 more than the previous record for Mac sales set just last quarter.
The iPod often gets the credit for increased Mac shipments, described as the "halo effect" over past years. The thinking is that iPod customers, having enjoyed their iPod experience and having seen Apple in a new light, might be more inclined to pick up a Mac while shopping for a new iPod case and realizing their old PC is woefully out of date.
But despite the recent results, it's still just not that simple. Apple said during its earnings conference call that half of the customers who bought Macs at its retail store last quarter were new Mac owners. Viewed against total Mac shipments of 2.2 million during the quarter, that's actually not all that many brand-new Mac users.
Apple sold 473,000 Macs at its retail stores. That means we're talking about something like 200,000 people last quarter who were new to the Mac--assuming some number of people bought multiple Macs to send the twins off to college--and the rest are Mac veterans upgrading to a new Macbook or one of the new iMacs. It's fair to assume that there was some percentage of new Mac customers who bought their systems online or through other channels, but an Apple representative declined to share any statistics on the percentage of new buyers in those other areas.Obvious as it may seem, it's really hard to quantify the halo effect. Believe me, I've just spent the last several hours trying. The numbers seem simple: Apple has sold more than 120 million iPods to date, and Mac shipments are growing much faster than the overall market.
But Hewlett-Packard's worldwide shipments are growing twice as fast as the overall market. Acer's worldwide shipments are growing at nearly four times the overall market. Even in the U.S., where Apple does the majority of its business and is the third-leading PC vendor, everyone but Dell is growing much faster than the overall market. HP might have a brand name in printers, but nobody, even HP, has a consumer product with nearly the cachet of the iPod.
Maybe Mac shipments are growing because people have had two or three Windows PCs in their lifetime, and are looking for something different. Maybe Mac shipments are growing because people are upgrading older PowerPC-based systems to Intel-based systems. Maybe younger buyers, a larger segment of the population than us Gen Xers, prefer the Mac over the PC. And, yes, maybe Mac shipments are growing because of the amazing swirl around Apple in 2007 spearheaded by the iPhone.
It would be silly to say the iPod has had no effect on the way Apple is viewed by the public. Anyway you slice it, the iPod contributed to a more positive impression of the company among those who hadn't always supported Apple as a matter of principle.
But I'm not convinced that you can draw a direct line between iPods and Macs. Are you more likely to buy an HP PC because you own (and like) your HP printer? Are you more likely to buy a Sony television because you've spent thousands of quality hours with your PlayStation 2? Maybe, maybe not.
I will throw this out there: I think more people are buying Macs because there is no longer a penalty for switching to a Mac. After all, you can run Windows on a Mac, open and edit Word documents in Mac OS, and you probably spend most of your time on one Web page or another that doesn't care what operating system is in control.
With only small technical differences to worry about, the purchasing decision comes down to branding and marketing. Apple may resonate in your brain because you like your iPod, but I'd argue that the company's combination of world-class marketing, a laser-like focus on design, and the decision to switch to Intel's chips has done more for Mac sales than any one factor alone.
Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom. 
plugged into the iPhone instead of the iPhone's connector?
The iPod connector fits in the iPhone. It fits in mine. The only
difference I can see between the two is that the iPhone
connector is shorter.
Of course - that's why I'm buying one. You don't need to be a genius to work that out!
As an IT professional I'm always getting "help me buy a
computer" questions, but lately more and more people are
asking about Macs.
Why? Because, as many of them tell me, it's because they are
tired of all the work it takes to own a PC. They are tired of the
crashes, the viruses, the spyware, the fact that windows slows
down over time. They are just fed up with what they have and
want to know if it's true that Macs "just work".
I tell them that no computer is totally secure. That any
operating system can get a virus, but so far, OS X hasn't - but
that could change tomorrow. But, they ask, are Macs really as
easy to use as the advertisements say?
To which I have to answer, Yes.
It's impossible to do it. Believe in the penguin. You can't have a virus on a Mac or Linux system. Can't happen, won't happen, impossible.
Only people who like to waste their time own or use Windows products.
Believe in the penguin and you'll never go wrong. Linux is the only one true OS of any serious IT professional.
Microsoft is GM to Apple's Toyota. They are dead in the water. They are in the middle of transitioning from a CEO with a flawed vision to one with NO vision.
Vista is catering to the RIAA and AVs, and other large corporations, making the product not work, have compatibility issues, and opening holes where there should be none. Mac is owned and controlled by one company, and one man. Steve Jobs bows to no corporation.
Vista has rounded corners on windows. I can't remember a time when Macs did not have rounded corners.
You can install Windows on a Mac, but not the other way around. IF you want both, gotta buy a Mac.
Personally I see no reason to downgrade from XP to Vista, and personally, I'd rather use a Mac or Linux machine than Vista.
MS is using the entire world to beta test an operating system designed to protect large media corporations instead empowering people.
And with MAC, you get the whole operating system, not a stripped down version (or having to pay up to 300.00 USD for the really really good version that gives you everything.. called "Vista Ultimate") and still give up things you took for granted in Windows XP.
For the first time in 20 years, I'm seriously looking at a MAC. I'll make my decision in the Nov Dec timeframe.
Yes I make my living programming for Windows, so I'll keep a cheap low end PC around for that. Lots of low priced, very low end Athlon X2 boxs out there from Dell, NewEgg and BestBuy.
But for everything else, I'm looking at a MAC. (btw, I am also a low budget indie movie maker).
So I decided to give Apple a serious look, the safety net of being able to install XP (since this was after the Intel switch) was enough for me to decide to take the dive. I've got parallels for the few Win apps I can't get away from (but I probably only go into it once a week or so). The rest of the time I'm in OS X and very happy with it. So happy that I replaced my wife's machine with a Mac as well.
Microsoft is working very hard to drive their customers away. IMO that will have a bigger effect than the IPOD halo effect.
page or another that doesn't care what operating system is in
control.?
That's the main reason people switch to Apple's OS (or Linux):
the browser wars are over. The polyglot neutrality of cyberspace
?via Java, Flash, Ajax, etc?has taught people how little it
matters what GUI or platform they use. If you can run OS A and
OS B, who cares if Apple makes the machine? The web's the
destination.
And then the user gets accustomed to Jobs & Co.'s obsessive
polish, and they're hooked. High quality industrial design: it's
diabolic!
Microsoft continues to release new OS versions that not only require investment in an brand new PC, but will not accept many hardware upgrades.
I have been a windows user for over 15 years, but XP is my final PC/Windows purchase.
M<y next PC purchase will be from Apple, they simply offer a better product that is more stable, secure and functional right out of the box, something Microsoft seems unable to offer.
After you buy that Apple product and realize that it does nothing and has less software than Linux but for more money that two Windows PC's, then you will feel real stupid as you crawl back to Windows.
issues (Vista). I have to use what the company chooses for work,
but why tolerate it at home. I bought 2 Macs, an Airport extreme,
but nothing from McAfee or Norton! The computers have been
running without a crash since I bought them 3 months ago.
In your letter you wrote saying "I bought this Dell because I saw someone else's computer with a really nice picture as their background on their desktop, and their screen saver was equally as cool. But Windows SUCKS, I have NO WAY to change it, it's like the only people that Microsoft caters to are geniuses that know all about computers. I want something that JUST WORKS!"
I need to do my job is PC only, and will be for a long time (the developers explained it like this....why double our software budget to support a tiny customer base). The dual boot system was a major pain in the rump to install, and did not work as well as my 4+ year old PC. I have not had a crash with my PC in years either....with simple spyware/malware software, and just simple virus protection none of my machines has ever been infected. Mac might be better.....but it does not do the job I need (yet?). Also, don't fool yourself.....a virus can be written for the Mac...no one has bothered to do it yet.
And its never SIMPLE virus and Spyware. I am constantly cleaning. Every day it takes over 1/2 hour at startup and close down to clean.
PS. 115,000 to zero. and only one side is currently increasing. :-)
A competent developer can support several platforms easily, with very little extra cost.
People who use Vista everyday since beta 1 and who know about computers, do not have any problems with any OS or any hardware.
Why everyone is blaming Microsoft for the fact that most computer manufacturers put a lot of crapware on new PC's? Is it hard for "average" person to uninstall crapware?
And people always call themselves "smart", but when it comes to making smart decision and clicking few buttons - they just can not do it. I call that kind of people computer illiterate :)
For those people - OSX is the best choice - they will not have the choice of the software there - they will have to use what Steves tells them to use and they will be fine. Steve is a shepard and all other Mac users are sheep without their own brains :)
I had a lot of problems with MBP - for example there were not all x64 drivers, some drivers for ACPI, touchpad intentionally lacked necessary features, MBP gets really hot, etc...Also I never used OSX - cause there is plenty of software that works only on Windows and even viewing webpages is not the same (people forget that OSX does not have same fonts as windows machines - so fonts look a lot different - very smooth on Vista, crap on Linux or OSX).
In the end of August they released ThinkPad T61p and HP 8510p, which have better price and even better build quality that MBP. So I sold my MBP and bought T61p.
Now I have all the drivers, T61p never gets as hot and I bet I will not look back to Mac again :)
So I was attracked to MBP spec wise, but not for long. If we would compare All-In-Ones - then iMac is the best deal hardware wise again, because all other AIO PC's are more expensive and do not have as good video.
Honestly I do not understand why PC manufacturers like Sony, Gateway and HP do not understand that video hardware is very important in purchasing decision...People want to play games...
In gaming comunity there were many people that like me got MBP, just because PC manufacturers were late with Santa Rosa and latest video hardware...
It will be interesting to see how Apple will do in the 4th quarter...
In 1992 I added a PowerBook 100
In 1994 I bought a Mac 575 to replace the SE
2002 It was a new iBook
In 2003 It was an EMac to replace the 575
2006 A MacBook Pro
Mac has always been the way for me...
The iPods are great and I really like the iTouch
My MACS have aged well, been productive and fun!
Well Done Steve!
But then, when you control every hardware variable, you can feign stability pretty easily... Maybe they would have been okay... but I refuse to buy hardware just for an OS. I have considered building a hackint0sh, however. Any advice for me?
ethana2@gmail.com
I use Linux & Windows when I have to. No problem. Mac the rest
of the time. Why?! It does work. It gets out of your way. We're
not talking idiot level "it just works" but rather, using the
machine for everything: graphics, video, development, you name
it. Crash? Never. Virus? None. Software? Lots!
Sure there is a lot of crappy software on windows, MS makes
plenty of that themselves.
OS X costing double to develop for? Only if they have crappy
devs. If those devs are worth their salt, they should already know
something about coding for Unix and Linux. If they can do that,
they can learn OS X programming in no time. Productivity?
Super. Crossplatform programming is real and not difficult.
This is obviously true, but ignored by most analysts. I think it's because the point requires a grasp of history that most people don't have (sorry most people!). But the internet has become the most important 'platform'. That means the network effect that allowed a single OS to become dominant in the early 90s is gone forever. Add in the fact that of more than enough spare computing power that can be devoted to solving OS compatibility issues, and the future is bright for competitors to windows. There used to be real reasons to buy the same OS as everyone else. But today it matters zero.
But there are other reasons for Macs success:
- the iPod halo effect. Brand awareness and product satisfaction are undeniably important. Are you more likely to buy an HP computer because you love your HP printer? The answer to that is, generally, an unequivocal and undeniable yes.
- Like Apple's other products of late, OS X is simply a great product. If it sucked like Vista, the iPod halo effect and other incidental factors would mean very little.
Also their support and customer service is not consistent. Their 'phone police' won't let you pass the 'gates' of apple support, unless you know the secret word (your serial number).
HP does not do this. They start helping you with your problem right away. No harassing right from the get go.
Apple also harasses you with FORCING you to register when you turn on a mac for the first time, and at the retail counter, will make you feel guilty if you don't buy the optional AppleCare.
Then tech support will make you feel like 'you better get applecare before its too late, or you'll regret it (we won't help youuu...).'
I used to recommend Macs to everyone I know, but with all this unfriendliness in what used to be the 'smiling computer' when you turned it on, and the focus on all things ipod, ithis, and ithat, instead of iMac, iGaveUp...
Of course, that's why you would "rebel" and choose something else
with a lower customer support/satisfaction rating. Oh, i see, you
were trolling. Got it.
- The real deal
- by iKenny October 23, 2007 6:20 AM PDT
- People seem shocked that Apple's selling more Macs, but really, it boils down
- Like this Reply to this comment
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Showing 1 of 3 pages (180 Comments)to common sense. Consider the fact that most people use their computers to
do two things: browse the internet and check e-mail. Really. Why, when there
are two computers equally capable of doing this, would you buy the one that
is susceptible to attack? Is there any reason? I use my Mac every day and
viruses never cross my mind. I don't worry if I get an e-mail with a suspicious
file in it. It's a .exe anyway. Or if I receive a file from someone that could be
infected. If there's a nastie hidden inside, it's not for Mac.
I'm not saying Macs are invulnerable, because I'm almost certain they're not,
but I am saying why even bother with viruses, trojans, worms, adware,
spyware, and the plethora of other malware existing for Windows? Why put
yourself through that? If, like many computer users today, your primary goal
is internet internet internet, then there's absolutely, positively, no viable
reason to continue to run Windows.