Is Apple blowing ‘Windows of opportunity’ to grab more Mac market share?
Monday, September 17, 2007 - 09:21 AM EST"If you’re the owner of a Windows PC who is looking for a replacement computer, the choices are grim. You can step into the world of hurt that is Vista, the latest version of Microsoft Windows that was released in January. Or you can seek out a new machine that still comes loaded with the comparatively ancient Windows XP," Randall Stross writes for The New York Times.
"Maybe, you might say, the moment has arrived to take a look at the Mac. You can easily order one online, of course. But if you’d like to take a test-drive before you commit, odds are that you’ll have to look far and wide for a store that sells it. The Mac’s presence in the retail world remains limited, a shame given the rare opportunity for Apple to gain market share that opened up when Vista arrived," Stross writes.
MacDailyNews Note: 90% of the nation's population is within 45 minutes an Apple store (37 to 48 miles), according to Apple Inc.
Stross continues, "The Mac’s worldwide market share was 3 percent as of June 2007... Steven P. Jobs, Apple’s co-founder and chief executive, can hardly be satisfied with a 3 percent share after more than 20 years of selling the Mac."
"The best time for gaining market share is when your main competitor stumbles while introducing an entirely new version of its core product. Thanks to Microsoft’s lumbering pace, Mr. Jobs had six years to look forward to the moment when XP would be replaced by Vista," Stross writes. "When the long-awaited moment arrived, Vista turned out to be in as sorry a state of semicompletion as Mr. Jobs could have hoped for... The Mac was seemingly well positioned for the moment in many ways."
Apple "said it shipped 1.52 million Macs in the first quarter of this year, up 35 percent from the year-ago quarter. In the second quarter through June 30, it shipped 1.76 million Macs, up 32 percent from a year ago, an all-time quarterly record," Stross writes. "Funny thing, though: based on the ratio of Windows and Macs actually in use, no gains can be seen for Apple."
"The Mac’s share of personal computers has actually edged a bit lower since Vista’s release in January, and the various flavors of Windows a bit higher, according to Net Applications, a firm in Aliso Viejo, Calif., that monitors the operating systems among visitors to 40,000 customer Web sites," Stross reports.
MacDailyNews Take: Why does Stross use Net Applications' measure, a measure that can be influenced by browser agent spoofing, instead of the more accurate and usually-used measures from IDC, NPD, and/or Gartner, which measure OS share by retail sales? Probably because IDC, NPD and Gartner all show Mac market share gains that do not support his supposition. For example, according to NPD, Apple’s U.S. retail notebook market share for June 2007 was 17.6%, an increase of 2.2 percentage points over June 2006. That doesn't work well for the story Stross tries to weave. Please see related articles below for more.
Stross continues, "To try to win over customers when Vista appeared, Mr. Jobs and his managers did not enlist resellers for the Mac with the same enthusiasm that they showed in building Apple’s own network of retail stores. In the war for operating system share, there’s no substitute for boots on the ground to retake territory, shelf by shelf."
"Apple was organized in a way that was bound to lead to neglect of the Mac and the retail channel. The 10 members of the company’s executive team include a senior vice president who is responsible for the iPod and nothing else. Another is in charge of only the stores Apple owns. No one’s sole responsibility is the Mac. The Mac’s sales are under the purview of the chief operating officer, Timothy D. Cook, who has other things on his plate, like running the entire company," Stross reports.
Stross reports about Apple and Best Buy which went from a pilot program of six stores in spring 2006 to 50 stores by the end of 2006 to 200 stores currently, with plans to expand to 300 this fall. Stross also writes about how Apple ignores Mac sales to large corporations and concludes that "the opportunity for Apple that has been opened by Vista’s introduction is temporary" in his full article "A Window of Opportunity for Macs, Soon to Close," here.
[Thanks to MacDailyNews Readers too-numerous-to-mention for the heads up.]
MacDailyNews Take: Stross is not completely wrong. Apple could and should be doing more to sell Macs which, we firmly believe, are the best choice for the vast majority of personal computer users. Only Apple Macs can run all major operating systems either natively or through fast virtualization. Apple Macs run the world's largest software library: all Mac, Windows, Linux, and other OSes and applications. Apple Macs last longer, are competitively-priced, "just work," and more secure.
We'd like to see Apple do a major Mac campaign based on the iPhone ad campaign - actually show people what can be done so easily on a Mac.
Stross is wrong that the "windows of opportunity" is closing for Macs, however. Mac sales continue to increase at around three times the PC industry average. Mac sales are setting unit sales records. Mac market share is increasing, not remaining stagnant or decreasing. 1 million OS X-based iPhones were just sold in 74 days. iPod touch is OS X-based. There's more than one way spread the Mac message than through ads and/or selling in Wal-Mart. What does Windows have on the horizon? Just Windows Vista SP1 and vague promises (as usual) of something far out in the future. Apple has Mac OS X Tiger today and Leopard due next month; both of which has been consistently reviewed as substantially superior in many ways over Windows XP and Vista.
Apple's window of opportunity has always been open to various degrees and continues to open wider with each passing day. Apple could and should do even more to promote the Mac, but the state of the Mac is strong and growing stronger. Patience.


There are already too many recent switchers trying to make the Mac more like their old Windows boxes. Market share is nice, but it has its drawbacks. A slow, steady increase is much more preferable to a big grab for market share. PC users need time to adjust to the idea of buying on quality instead of price.