In the consumer market, Apple's
publicity machine is firing on all cylinders. Despite the occasional piece of bad publicity, the media
tracks Apple's every product move with a zealousness bordering on obsession
(and readers follow it with an equal zest). Apple's modest gains in the PC market and minor
gains consumer operating systems market are well publicized.
Furthermore, among consumers, Apple's brand is extremely well-received and is considered synonymous with creativity and innovation.
Why does Apple do so well with the consumer? Well much of it lies in its
marketing genius (or investment). From the iPod commercials featuring the
trendiest music, to the comic “Mac Guy, PC Guy” commercials, Apple knows how to
market to the majority. Apple isn't necessarily looking to win over the
tech followers, like many readers on this site, it’s looking to win over your
sister, your mom, your dad -- and it’s doing a good job in most cases.
However, Apple has one big flaw that happens to be coupled to perhaps its
largest success story of last year. Apple simply has no respect from
business analysts as a serious business solution. Analyst opinions of
Apple in the consumer market versus the business market are night and
day. However, is Apple doing badly in the business market?
Not at all; in fact, it turns out that Apple went from nearly
no market share in the business industry, to 4.2 percent. To
put this in perspective Vista was only able to eke out a 6.3 percent market
share despite its heavy business marketing and dominant position. So do
those numbers indicate a Mac OS close to tying a Microsoft OS? Why hasn't
this been the front page news of every tech column (especially when OS X's
nearly insignificant consumer market gains were heavily reported)?
The reason is despite the success, analysts have dismissed it and these
analysts frequently drive what is reported in the tech news, more than some
would like to admit. And the analysts just don't like Apple's business
efforts. Says Forrester analyst Thomas Mendel:
While 2007 was a big year for Apple, with its enterprise
share growing threefold to 4.2 percent, uptake remains limited to enthusiasts
and small workgroups. IT departments crave standardization, and Macs pose too
many problems for IT departments. The verdict for enterprise-focused vendors is
clear: Unless your market is a niche business group, Windows is the only
desktop you need support.
However
many of Forrester's points are largely inaccurate in terms of the business
market (though they might be a bit more applicable, actually, to the consumer
market). With solutions such as the Mac Mini, Apple actually has some relatively
affordable offerings, in terms of basic business machines and can often beat
competitor's business solutions on price. Another leveled criticism is
that Macs are proprietary. Actually in terms of many "openness"
fields such as web support, Apple is strongest supporters of universal standards.
Lastly, another frequent criticism is proprietary software. While this
can be very true for the consumer industry (lack of gaming support), in the
business industry Apple often has as much or more software. In fields
such as content creation, it’s no secret that Apple has a number of outstanding
software products. Perhaps the most universally useful business
software -- Microsoft Office -- is near-fully implemented on Macs, thanks to an unlikely
partnership with Microsoft.
Part of the blame for the situation rests with Apple. While making great
marketing efforts in the consumer industry, Jobs and his team's business
marketing efforts are virtually non-existent. The consume buzz appears to
be driving the new business success, as Apple sure isn't. And likely
thanks in part to Apple's poor job marketing itself, business analysts remain
unimpressed.
While devices like the iPhone have won Apple a small measure of begrudging respect
among business analysts, it is unlikely that their approval will
change overnight. It will take a combination of actual effort from
Apple's market, and a less biased analysis from analysts to eventually give
Apple more of a chance.
In market analysis the one thing you can usually trust is hard numbers. When it
comes to sales data it seems that analysts should be cheering Apple's business
efforts, and perhaps jeering its consumer OS efforts, where gains have been
much more lackluster. Unfortunately, they appear to be doing the
opposite.