Report: Apple Owns $1,000+ Computer Market
Support for a bifurcation of computer sales has come from recent comments by an NPD analyst. Apple sold 90 percent of computers costing more than $1,000 during the fourth quarter of 2009 while the average Windows PC price is $475. The data illustrates Apple practically owns the “premium” U.S. computer market.
“The data is a startling confirmation — at least for the United States — about Apple’s success establishing the Mac as a premium brand,” said Betanews.
Additionally, Apple doubled its share of the $500 to $1,000 computer segment from 5 percent to 10 percent, fueled by the $999 white MacBook and $599 Mac mini.
While Apple’s lowering of prices may have attracted more purchases, Windows-based netbooks have forced PC prices down and “lowered consumer expectations about Windows PCs and brand equity for companies like Dell or HP,” according to the site.
NPD’s Stephen Baker had a warning for Apple: the premium segment for computer sales is shrinking. “At some point they [Apple] are clearly going to run out of headroom in the $1,000-plus, and in the $500-$1,000 segment they are still pretty small.”
Baker’s comments, of course, focus on sales through brick-and-mortar retailers, and not direct-to-business sales where demand for PCs is still strong. Another proviso potentially affecting Apple’s increased presence in the $500-$1,000 segment is the lowering prices of PCs, depressed by demand for low-cost netbooks.
However, if Apple could parlay its sub-$500 iPad as a response to the netbook and retain its halo for premium quality, the Cupertino, Calif. company may enjoy the best of both worlds.
Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.
