The Mac Versus PC Debate Has Never Been Clearer
July 23, 2009 at 14:57 PM EDT
“ Our goal is not to build the most computers. It’s to build the best. ” That was Apple COO Tim Cook two days ago during Apple's quarterly earnings call. Sure, it may sound like spin from an executive who doesn't have a better answer as to why Apple isn't competing in the low-end of the market, and thus, gaining market share. But it's not. You need look no further than numbers released today by NPD to understand Apple's strategy. Its revenue share of the "premium" price market — that is, computers over $1,000 — is a staggering 91%. This means that 9 out of every 10 dollars that is spent on PCs in that price range, goes to Apple, as Betanews' Joe Wilcox points out . That, for lack of a better word, is insane. Analysts and journalists are often quick to point out Apple's relatively low overall market share (less than 10%). But that completely misses the point of Apple's Mac business. If Apple wanted to make a range of low-end computers, it absolutely could. And such machines would sell like crazy, boosting Apple's market share. But there would have to be some trade-off in quality, and perhaps more importantly to Apple, to its high margins. And as it has proven time and time again, it has no desire to give up either.