Apple cleaning up in $1,000-plus retail market

Notebooks like the MacBook Pro, which starts at $1,999, are helping Apple dominate the $1,000-and-up market.

(Credit: Apple)

Apple's doing well in the high-rent district of the computer industry, according to NPD.

On Friday eWeek published some data confirmed by NPD that reveals Apple now owns 66 percent of the U.S. retail market for personal computers that cost more than $1,000. Its percentage of the U.S. retail market in general is 14 percent, according to NPD.

Apple only sells one Mac below $1,000--the Mac mini--so it's not all that surprising that it would do well in that category, given the momentum behind Mac sales over the past year. By contrast, the single largest category of notebooks available at Best Buy--when sorted by price--falls between $700 and $899. And two-thirds of the desktops on the site are priced below $1,000.

These numbers don't include an awful lot of sales--such as corporate PCs that account for about half the market, and online-heavy sellers such as Dell--but tend to illustrate trends in the U.S. PC market over time. Apple only had about 18 percent of the same category in January 2006, according to Fortune. That was the same month Apple introduced its first Intel-based Mac.

This is a profitable category, however, that all PC companies covet. Those PC companies may be reaching corporate customers at those price points, but Apple is dominating the consumer half of the high end.

[tomho]

Could this just mean that Macs cost too much?

[gsmiller88]

When you factor in greater quality and less downtime as compared to a Dell or HP, an Apple is actually a better buy.

[Vonmaxx]

No, Mac's have better parts in them. Mac's score higher running Vista than PC's do!!!

[pbilbao]

It's not a question of costing too much is a question of how much are you willing to pay for top quality machine, same as how much are you willing to pay for a BMW 335i.

[myl7m]

Seriously. Could you cut the measure of sales any more to favor the Mac? Perhaps +$1000 machines sold in the color white? I'm sure you'd breach the 90% mark. No business sales included? What's the purpose of this stat?

[JuggerNaut]

Well, since they always pit the overall PC market (HP, Dell, Acer, etc...) against the Mac market (Apple); I'd say heck, why not!

[Penguinisto]

They also mentioned that Macs comprise 14% of all computers sold in the US. That's up from 5% or so two years ago. If the curve continues, Microsoft may be stuck with only the business customers (assuming they don't start switching...)

[DrtyDogg]

@Penguinistio: "They also mentioned that Macs comprise 14% of all computers sold in the US." Just to clarify "They also mentioned that Macs comprise 14% of the US retail market." Still quite an improvement though.

[georgiarat]

Could this just mean that Macs cost too much?<br /><br />Are could this means that one gets in return value for the payment? A machine and software that works.

[georgiarat]

My typing!<br /><br />Could this just mean that Macs cost too much? Or could this mean that one gets in return value for the payment? A machine and software that works.

[Penguinisto]

Well, if my 2004-built PowerMac is any indication, it does. Zero breakdowns, zero repairs, and the only things I'd done to it at purchase time were to add a 2nd HDD, a 2nd video card, and some additional RAM (none of which are blessed by Apple). Meanwhile, it has run pretty much 24/7 the whole time.

[docster87]

Perhaps other computer makers use cheaper parts &#38; less R&#38;D &#38; less love to underprice their units. Macs are priced fair considering what a person actually gets. I would rather spend an extra up front for a computer that is well built &#38; comes with good useful software than cheap out and get a cheaper computer that isn't well built, comes with a poor OS, and comes loaded with rip-off shareware.

[ekesqueaky]

This is one of the most meaningless statistics I have seen in awhile...

[protagonistic]

"This is one of the most meaningless statistics I have seen in awhile..."<br /><br />Statistics are always meaningless when you don't agree with what they are saying.

[t8]

Ha ha, nice comment above.<br /><br />:)

[saffroncapital]

ekesqueaky... given that Apple IS targeting the consumer / small business market and seems to actively discourage corporate accounts (see the link to the article in BusinessWeek on this page) the statistic is extremely relevant and meaningful. <br /><br />You clearly misunderstand how markets work...

[Magicland]

Either a real bunch of idiots or mac fanboi's at news.com. Apple hasn't increased its percentage of $1000+ sales, other than notebooks and high-end gaming rigs, the majority of computer's prices have fallen below that threshold. That's why Apple has a larger share of that market, the market has shrunk. If you can't build a core 2 duo machine with DVD burner, 2 gigs of ram, nvidia 9600 GT graphics card and a 500 gig HD for under $1000, you don't belong in business. Oh, and exactly how much "love" does apple use in its pricing formula? We all saw exactly how much love apple has for its users when it cut the iphone prices $200 a month after they came out.

[faust]

Funny how your rant forgets to mention the $100 gift card early adopters were given after the price cut.<br /><br />Does anyone do research anymore?

[pugscanfly]

@Magicland, It may help if you actually read the article you are reacting to.

[arkyump]

magicland, your just one of those jealous windoze users. People will pay for what they want in a product, be it a Hundai or a Lexus. What do you care that us mac users are a bunch of knuckle dragging stupid characters that don't require constant headaches that you windoze seem to thrive on. OBTW, If you can find the characteristics you describe in a computer for less than a $1000, I suggest you purchase one, maybe two since you've saved so much money by NOT buying a Mac. HP doesn't have one for that amount not with the processor speed that the Mac has, Neither does Dell. I think your full of sheepdip.

[sanenazok]

People pay money because they fall for the hype. They vote for the same reason, too. Let's have change for the sake of change and things will change!!!<p><br />Hilarious with the same old car analogy. Too bad now PC's and Apple's have the EXACT SAME hardware inside. So it's like paying for a Lexus, but getting the Hundai engine.<p>Yum yum give me more of that stuff uncle Steve.

[Melekai]

Or you can just live with the microcrap that's shoveled down you're throat.Like the latest <a class="jive-link-external" href="http://www.snopes.com/computer/virus/postcard.asp" target="_newWindow">http://www.snopes.com/computer/virus/postcard.asp</a>

[sanenazok]

The best part is excluding Dell.<br />How to increase Apple market share? Pretend that Dell, Lenovo and other business-heavies DON'T EXIST! That's a great idea.

[Marcia Boone]

Love my MacBook Pro 17 inch screen, and am extremely satisfied with it. I've been an Apple user since the mid 80s and it gets better all the time. Try getting customer service at Best Buy~~~but Apple, perfect every time.<br /><br />That little cheap HP Compaq laptop the school system issued can't do much of anything. I do all my computer work at home where I have one that can deliver everything I want and need.

[Pixelslave]

Please tell me that those high end gaming gigs are under $1000, please! Last time I checked, all hard core gamers have one and they are upgrading every couple months.

[jabberwolf]

NEWS FLASH:<br />WATER IS WET<br />SKY IS BLUE.<br /><br />Statistics show that macs maine seller of $1500 machines takes up 90 percent of the market that sells machines for $1490 to $1520.<br /><br />Really, how stupid do these writers think we are?

[AlienEric]

Apple have a bigger market in the iPhone and with people doing amazing stuff to make the iPhone more and more like the modern mini laptop, you can only guess their profit keeps going up. I got my iPhone from <a class="jive-link-external" href="http://www.eaonlineshop.com/" target="_newWindow">http://www.eaonlineshop.com/</a> and even after 2 months it still continues to amaze me with new things.

[LeChiffre]

You must have a very small brain, the features on my iphone are so limited that, it took me just days to realise i needed more from apple such as copy&#38;paste, bluetooth stereo just to name a few

[zgreenwell]

This doesn't include people who build their own computers and choose to run Windows. They are either using an existing copy of XP/Vista or buying a retail or OEM version of the OS. Most people buying PCs from a store like Best Buy or Circuit City just don't spend $1000. Since the only Mac that is below 1k is the Mac Mini these numbers only only comparing a small fraction of the total PC market to what is basically the entire market for Apple computers. It is no wonder apple comes out ahead by that comparision.

[faust]

Not if you are a business person, shows who might have a healthy profit margin and who doesn't.<br /><br />As a marketing person it also shows be which company has the least price sensative base, important to know in a field with low margins and slowing sales thanks to a jittery economy.