Apple drops to No. 5 in laptop sales--are cheaper MacBooks the answer?

According to research firm IDC, Apple has dropped from the No. 4 purveyor of laptops in the U.S. last year to No. 5 this spring. The firm estimates that Apple has shipped 12.5 percent fewer laptops than the same time last year, even as it maintained its 7.6 percent market share.

Leapfrogging Apple to take the No. 4 spot is Toshiba, now estimated to be shipping 7.7 percent of all laptops in the U.S., thanks to system such as the Mini NB205 Netbook. If you're keeping score, IDG estimates that Dell remains No. 1, with 26.3 percent of the market, closely followed by HP, with Acer showing strong year-over-year growth to hit 12.6 percent of the American market. It looks as if all those $299 Aspire One Netbooks are starting to pay off.

Naturally, this has tongues wagging over whether Apple will release a less-expensive product, such as a Netbook-style laptop, in order to regain some market share (not that it ever takes much to get the chattering classes predicting cheaper MacBooks).

We've seen plenty of rumors about Apple mini-notebooks and tablets, but will a few quarters of recession-addled shoppers really force Apple to go back on their long-stated desire to stay out of the bottom rungs of the market? What do you think? Sound off below!

(Credit: IDC)

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[redsand247]

I guess those PC ads are helping

[MacintoshTipz]

This may get Apple back to the drawing board on a different Strategy. This proves that two (2) things are working:<br /><br />-The Recession is getting people to think more about cost when they choose their Laptop for College<br /><br />-The Laptop Hunter Ads are working as well!

[The_happy_switcher]

Yeah, people really love those laptop boat anchors on fishing trips.

[pcfish]

@MacintoshTipz<br /><br />Market shares means nothing (almost) if it doesn't generate more profit (not revenue). Just look at GM.

[Norseman]

News flash!!! Cheap stuff is selling better than expensive stuff! Do you suppose the tanking economy and massive unemployment has anything to do with that? Apparently, Microsoft doesn't think so. They think it's because of their advertising. Don't they get the concept that raincoats sell better in the monsoon season and snow shovels sell better in the winter? They are basically spending hundreds of millions of dollars to tell people that it's raining. Way to go, Microsoft!

[Simplicius]

This is actually old news by now. Sales in May were 25% higher than in April. Yes, Apple had just decreased its prices. So those ads aren't working anymore.

[Renegade Knight]

Sure they are because they are still true. Apple dropped prices, but not enough to make them a better value compaired to other computers who's prices also dropped.

[nutjob]

Then why is Apple legal still complaining to MS about ads?

[ace10134]

They dropped their rediculously-over-priced laptops to rediculously-priced laptops. Still a rip off.

[Rolker]

"...in the U.S..."<br /><br />People need to remember that outside the US, Apple's share is much lower and that they are a small player in the PC market (in contrast to the MP3 player market, which they have a firm stronghold).

[Super2online]

Now that Microsoft is actually telling their side of the story, we see that a large part of the population agrees.

[mdub311]

I would love to get a Mac. I'm tired of the Windows regime. If macs dropped their prices to match the reality of the economy, they would actually make more money than trying to be the ultra pricey hip brand. Get your prices down to the point that the masses can get one, and you'll triple your profits. People are ready for something other than Microsoft running their lives. If they don't, then I'm going to a Linux based machine in a year when I get a new laptop.

[Firehazel]

i think i would just buy a PC and make it into a hackintosh.

[ark_v2]

I hear all these people saying how is Windows closed, the Microsoft regime...<br />Everyone writes code for Windows (sony, apple, you name it), evey single media player is compatible with it, millions of software options from where to choose, millions of hardware configurations in which their OSs will run on; compare this to a nice but mostly overpriced hardware, an OS that will only run on this overpriced hardware, general incompatibility with other platforms, extremely expensive software in comparison, and the list goes on. I'm not saying that I'm a Microsft supporter when I'm in general against all this monopolies. Still, when you compare Apple's take on business with Microsoft's, you realise they are not that different. <br /><br />I'm an open-source supporter and tend to use Linux for my personal machines and when I'm not using specialized software packages only avalible on Windows.

[meechp123]

I completely agree with mdub311. Apple needs to LOWER it's prices.

[chrkeller]

I would buy Apple, but the price just isn't worth it. Windows is far cheaper and more user customizable.

[GeneOdyssey]

Agree. I'd buy one too but just to have as a secondary machine for pics, internet, music, etc. As much as Windows is hated it still offers a huge amount of possibilities to the regular user, home and work.

[pcfish]

People who won't buy a Macbook will not buy a $2000 Windows laptop, just my guess.

[zotenschmied]

could it be that the name of the research company is idc and not idg?

[Dan_Ackerman]

That's what I get for staying up all night to watch "Max Payne" in Blu-ray from Netflix. Bad idea all around....

[Renegade Knight]

If I had to hazard a guess I'd say it's that Apple doesn't make Netbook and the others do.

[kineticarl]

Thi's is so untrue and bias'd. I read on a blog that I wrote that MAC's have 183% market share! Way more better then winbloze!

[GeneOdyssey]

how comical! winbloze, yeah!

[Paul_Christie]

@kineticarl <br />re: "I read on a blog that I wrote that MAC's have 183% market share!" <br />LO freakin' L <br />Maybe you shouldn't read your own written blog, eh?

[northoftheborder]

Please explain how 183% is calculated. Do you understand the concept of the pie chart?100% max??????

[Seaspray0]

'I read on a blog that I wrote..." That you wrote?!? 183%?!? LOL.

[cp256]

And three days later it is up to 237%! AAPLe is totally way more awesomer than that windoze garbage! I think Dan is buddies with the PC Guy!

[alenas]

I would say it is 2 things: <br />1: Screens - there is no anti-glare option now - lots of people are being put off by that (me too). <br />2. Microsoft ads... <br /> <br />Not a fan of control freek Jobs either. With that attitude Apple will not go too far...

[dhaval001]

I just don't understand how people are blind and need such data to see the real picture. <br /><br />As many people have mentioned, even I would love to have Apple products, not because I hate Microsoft, but Apple makes things really good with some exceptions and the biggest one being "control freak" and not listening to users. <br /><br />But prices of Apple products are just jokes. In every 100 people, u will find 8 or 9 which are just weired and go against the normal flow of things and that's your market share Apple. <br /><br />How ironic is it that those Apple fans buy the Apple brand and not the a product that is "value for money", e.g. they don't even think about "value for money". So they definately fit in those 8 or 9 out of 100. <br /><br />There is definately value to Apple products that "normal" people appriciate and love to have, it is just price that is just unbelievable. Even if it is not recession, I wouldn't buy apple products, only and only because of price. <br /><br />I bet with the arrogance that Apple (uhmm Jobs) has, they will not lower the prices. They don't create products for users, they create products for their arrogance, well, no wonder they don't listen to users. <br /><br />Dhaval

[blusky08]

Actually, in pricing quality built, name brand PC laptops with decent specs lately, they approach Apple level prices (in many cases even going beyond them). <br />Also, consider the extra cost of owning a PC. Macbooks often lasts years longer than a PC laptop. A Macbook also doesn't need yearly anti-virus subscriptions. Consider too the new Macbook Pro with a battery rated for 1000 charge cycles. IF your PC is even functioning well enough to consider replacing the battery in a couple years, that's another ~$100. <br /> <br />Plus, remember you have to sit in front of your notebook for years. A stable OS, seven hour battery, illuminated keyboard--and even a modicum of style are certainly valuable specs.

[Flynn_p2008]

Consumers are more price conscious than technology conscious. A good example of this is the growth of the netbook market.

[nutjob]

Actually netbook market is now decreasing. It was a bubble.

[paulimusmaximus]

I don't know if nutjob is correct, but I agree with him that I think it's a fad. I use my laptop for portability, and for superportability, I use my phone. I'm not gonna carry a netbook around, and I certainly would rather have a full size laptop if I'm in my house.

[streamline35]

For what I use my netbook for (notes, email, browsing, and writing), a regular laptop is way too expensive, and not nearly as portable. A smart phone is even worse, since most of are similar price, but too limited by their keyboards, screens, power, and operating system (basically by the fact that they aren't computers). Plus I really don't feel like paying an extra $100 a month to use the internet (on a tiny underpowered device).

[u_ser_name]

Despite Microsoft's ads, this is not as much an OS issue. It's obvious that Acer (+51%) and Toshiba (+33.9%) are doing more than one thing better than HP and especially Dell. Apple dropped due to the recession and their apparent inability of handling such environment so they duck and cover, choosing to wait it out until it blows over, in an effort to preserve the profit margin and it's image. Many people buy Apple BECAUSE it's expensive... and Apple seems to protect them from a buyer's remorse feeling so they will continue on buying Apple in the future.<br />In the mean time Apple is working on improving their sales well... the Apple way: by bringing new and innovative products to the market and succeeding where others failed due to better implementation and quality control.

[dhaval001]

So I guess Apple and Jobs didn't see the recession coming? Or do they still not know there is one out there? The only way they know is the Apple way and if that's the only way they know, it's their own way that has brought them here, and if they only know one way, its only going down. Now if Apple do come back up again, they will have to loose their current way of being pricey and protect those 8% people. Protection? What protection. In case people don't know, its no protection, its reality distortion field. Oh...we will double the storage space so now it is more value for money. But Apple fools, who asked you to double the sotrage? We all asked you to bring the prices down. When you can buy the same storage now for less than half price, you are still making profit, don't see how the user benefits here. Get that? reality distortion field. :)<br /><br />Dhaval

[nutjob]

and Scientology is the only true religion

[only_truth]

Netbooks shouldn't count in this. They're not primary computers by any means, so they shouldn't be counted as such. Just my opinion.

[mbenedict]

A lot of people use netbooks as their primary (and only) home computer. I traveled through parts of Asia last year and was amazed at how huge the netbook market is there.

[bigmc6000]

mbenedict - if all that requires is that you use it on the go in place of a desktop (or laptop) at home then you'll need to start counting smart phones as well seeing as how I don't even think about taking my laptop anymore unless the trip is over 4 or 5 days...

[GeneOdyssey]

The answer is lower prices AND more compatible software to truly be a competitor to the Windows platform. Come Windows 7, Apple is going to face a huge challenge for its bottom line. Macs have never been a competitor anyway, just look at the percentage of computer users in the world who use Windows. Is it like 90% or something like that? Apple, just stick to your iphone thingy and be happy.

[Josh BSN]

I own a mpb (2006 model). At the price point they are at now, and not having hdmi, no anti-glare screens... I wouldn't jump on board with any of their current models. Besides which, windows 7 is going to be awesome.

[cynicselectant]

I myself like the design of apple's laptops. What i don't like though, is that they charge their loyal customers a $400 premium to buy their product. Now if you're comfortable paying extra for a machine with the same specs and a different OS than fine, but i'll tell you that their pricing model is the #1 thing that has turned me away from their company. <br /><br />Oh and please don't bring up the BMW are more expensive cars for a reason tripe, mac's use the same parts as any linux or microsoft machine.

[arbitron]

Obviously you've never driven a BMW.

[streamline35]

It's not about driving a BMW - it's about it being a crappy analogy/comparison

[cyclonica1980]

This wont stop me from picking up my new Macbook Pro tonight I will tell you that much

[cyclonica1980]

Oh and to comment on the same hardware thing, its only partially true. You cannot tell me that PC's use the same battery and chassis anymore.

[streamline35]

No, but most people don't feel like paying a massive premium for an aluminum case and a longer lasting (but none removable) battery. It's what's under the hood that counts (and I can tell you that it's the same processor, ram, hard drive, video card, etc...)

[sanjayb]

@streamline35<br /><br />Uh, alot of people care about battery power. Talk to those people that travel constantly. And isn't the battery under the hood too???

[tipoo_]

Jobs surgery must have affected his reality distortion field.

[carlosjr16]

I'm a PC user and wanted to have the best of both worlds, but I had to wait a long time to do it. Can u say INCOME TAX?! Without it...NO MAC. I just purchased the new upgraded MAC pro tower. This monster is awesome! I just wish Mac prices would go down. I wanted to also buy a Mac laptop for my son but had to settle for a Dell Studio 17. Please Mac, times are tuff, give us a break.

[wmyinzer]

I never understand why Apple charges so much. It's linux- and unix-based right?<br /><br />...If both are free and open source, how could any company profit off it justifiably? Screw Apple for selling work that isn't their own and kudos to Microsoft for actually selling their own hard work.

[Shaun822]

HAHAHAHA oh sorry I laugh because the entire basis for graphical user interfaces was stolen from Xerox I believe it was.

[yahoo!!!]

lol its unix based