Report: Apple Owns $1,000+ Computer Market
11:36 am, February 2nd, 2010, Ed Sutherland
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.
Posted by Ed Sutherland in News | Comment on this article
If you enjoyed this article:
Subscribe via RSS or email, or follow us on Facebook and Twitter













hmm. lets see. Apple has (if you count instore only), 4 models in their computers that are $1000 or less. the mac minis and the macbook.
and eight laptops, 3 pro towers and 4 imacs that are over $1000 to very over $1000.
so it is a shock when you consider the range of prices for the Windows companies that Apple sells the most $1000+ computers. its the nature of the market.
also, I suspect that the ipad will be counted as a mobile device and not as a computer given that’s how they are marketing it so it won’t really change the numbers. especially when you add that they are all under $1000 anyway
Charli, on February 2nd, 2010 at 11:49 am
There is nothing startling or revealing that apple does not compete on the basis of price and its computers and products sell at a premium. A highly profitable company apples profits have been fueled by I-Pods, Phones, I tunes and to a far lesser extent computers. While sales figures are vague it has been estimated that apple has about 7% of the computer market. The portrayal of Apple as the big guy on the computer block is a major overstatement. With designs that are great that work well with its software, its premium price and go it alone strategy leaves them with while a highly profitable a small share.
Apple can hype the virtues of its tablet implementation, in the end it will be a very small part of the market and I doubt a huge contributor to Apples bottom line.
Geek, on February 2nd, 2010 at 5:52 pm