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Print 38 comment(s) - last by Sazar.. on Mar 11 at 2:42 PM

Apple continues to struggle as consumers become tighter with their spending

The winds of change can certainly be cruel at times.  Just yesterday Apple was the market darling, posting record-breaking quarters every three months and staging a comeback that many speculated could put it on level ground with Windows based PCs.  However, those times have changed and Mac sales have been slipping, as the same high prices that made Apple such huge profits have come back to bite the company.  With consumer budgets tighter than ever, fewer are able to afford luxury items like Apple computers.

The latest sign of Apple's fall from consumer grace comes in Net Applications' latest internet survey.  After a couple years of relatively steady growth Net Applications found that Apple's web marketshare actually fell in February.

February saw Apple's marketshare dip from 9.93 percent in January to 9.61 percent, a 3.2 percent fall.  A second set of data places Apple's share down to 9.71 percent, again showing a dip.  While these dips are certainly not bad enough to be considered a sign that customers are entirely forsaking Apple, they continue a disturbing trend for the company. 

For the month Windows climbed slightly to 88.42 percent of the browsing market.  Linux, though, posted the biggest growth, climbing nearly 6 percent to 0.88 percent.  While still a bit player, customers may be turning to Linux due to its lower pricing compared to Windows and OS X, and the fact that it comes packaged in some netbooks.

Apple does have one ace up its sleeve -- the iPhone.  The iPhone has continued to sell well despite the recession.  In the recent net survey, 66.61 percent of mobile searches were made on an iPhone.

The Net Applications survey collected data from 160 million visits to websites which it works with to collect data.  The research firm traditionally calls the percentage of these visits from a particular OS, that OS's "net marketshare".  While it’s important to remember that this is different from revenue or unit sales-based marketshare, it does provide a useful thermometer to gauge market trends.

Apple recently announced a new lineup of desktops, including some lower price models which it hopes will reinvigorate sales.  However some have complained that it has also raised the price on some of its high end models and still lags behind the competition in terms of hardware at a given price point.



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F5
By vapore0n on 3/4/2009 9:33:29 AM , Rating: 4
Hype machine running out of steam?

Time to roll out more cosmetic updates.




RE: F5
By inperfectdarkness on 3/4/2009 9:38:50 AM , Rating: 5
yep. and they're going to release some of these.

http://www.youtube.com/watch?v=9BnLbv6QYcA&feature...


RE: F5
By scrapsma54 on 3/5/2009 3:57:26 AM , Rating: 5
Apple needs new tactics and open up newer possibilities.
#1 Games, Games, Games. You buy a computer for twice the price of a similar pc and the bloody thing doesn't run a single modern game. Young buyers will most likely own a game or 2 on the pc.
#2 Murder Justin Long, If there is an easier way to quit the bashing other than murder, then do so NOW!!
#3 Pricing, Chip off the $700 that didn't go into the labor of making the product, $200 for non-labor is better than $700
#4 If their record breaking quarters are as high as they say they are, start expanding and paying software developers to make more software for osx.


RE: F5
By TheSpaniard on 3/5/09, Rating: -1
RE: F5
By VooDooAddict on 3/5/2009 11:15:00 AM , Rating: 2
Steam (and Valves HalfLife2 based games) coming to Native OSX would be a major improvement. If nothing else it would give 3rd party Devs a great way to distribute games to Macs... it's not easy to get a game published and on the shelf for OSX.

Apple would need to invest some serious $$ and people to get that going though.


RE: F5
By omnicronx on 3/5/2009 11:49:54 AM , Rating: 2
quote:
Steam (and Valves HalfLife2 based games) coming to Native OSX would be a major improvement.
Keep on dreaming ;) The work involved in keeping two sets of code for each game would not be worth it. As it stands PC's own the gaming market, it is not in Valves best interests to support a platform without a large userbase. Especially when all that would happen is the same gamers would probably move from one platform to another, which would result in around the same amount of customers but the need for a bunch more developers. (unless as was mentioned, Apple uses some of those profits to pay Valve to do so, but don't count on it as long as Jobs is still alive)

If you want Steam on OSX, crossover games is your best bet.

http://www.codeweavers.com/products/cxgames/


RE: F5
By Nirach on 3/6/2009 6:59:29 AM , Rating: 1
quote:
Steam (and Valves HalfLife2 based games) coming to Native OSX would be a major improvement.


http://games.kikizo.com/features/gabenewell_valve_...

First few questions deal with that issue.

tl;dr?

Not going to happen. Newell can't be bothered (If you're not excited about it, you're not going to be bothered about it), and Apple seem not to care.

End of discussion.


RE: F5
By SoCalBoomer on 3/5/2009 3:26:12 PM , Rating: 2
quality of screen? subjective and I don't believe that Apple's screens are any better than anyone else's anymore, especially as a: they're all made by the same few manufacturers and b: I HATE glossy screens. . .

Also - WHY look at BB for prices? Anyone who knows ANYTHING stays away from BB and goes somewhere with decent prices.

Oh yes, $400 difference is a LOT when you consider that it's what, 30% of the price?

Aluminum is show only - HP, Dell, Lenovo, etc. use Aluminum frames, Apple just elects to show it off as a style statement.

Multi-touch - haven't missed it, never had it, don't LIKE a big touch-pad.


RE: F5
By TheSpaniard on 3/5/2009 10:55:10 PM , Rating: 2
man people attack me for asking a question

screen quality is subjective b/c all the marks put them as identical (I thought it looked better in the store but then you cant look at them side by side you have to stand in the crowded area to see the HP but the apple you get to sit in a leather couch while they parade them for you (exageration but seriously why cant the macs be with the other laptops?)

I marked BB b/c they are the only ones to carry the HP 13" with an intel processor (basically identical to the mac) the HP online is AMD based

Al is for show only? O kinda figured it would keep the laptop from warping in 2 years like my plastic ones do

I kinda thought multi touch was a neat feature


RE: F5
By Boze on 3/8/2009 1:04:27 AM , Rating: 2
What kind of cheap laptop are you buying?

I still have an old Sony laptop from 2003 that I gave to my little cousin that looks nearly as good as it did the day I bought it. I have an ASUS A8Js from 2005 that survived two deployments to the Middle East and hasn't warped. And then I have an HP laptop from 2006 that, yes, as you probably guessed, is still in pristine condition.

You might want to examine how well you take care of your equipment, versus what its actually made out of.

For the record, people on this site are going to attack you for not using your brain before asking a question, not for "asking a question".


RE: F5
By BladeVenom on 3/5/2009 9:41:20 AM , Rating: 2
They need to make a basic desktop, instead of just their froufrou machines. The closest thing they offer to a regular old desktop is the Mac Pro which starts at $2,499.00. Which is too much considering desktop machines start at about $300 from other computer companies.


Oh noes!
By helios220 on 3/4/09, Rating: 0
RE: Oh noes!
By omnicronx on 3/4/2009 4:41:51 PM , Rating: 3
quote:
As throngs of people (myself included) installed Windows 7 on anything with a screen of course the Windows marketshare was going to increase.
And these stats account for this, which is based on browser usage. Unless you were an OSX user that stopped using it in favor of testing Windows 7, their marketshare is not going to increase, a windows machine is a windows machine.


ya but last month..
By omnicronx on 3/4/2009 4:38:12 PM , Rating: 1
quote:
For the month Windows climbed slightly to 88.42 percent of the browsing market.
Correct me if I am wrong, but last month their share fell 0.45% for their biggest loss ever.. and Apple was up 0.3%.

Essentially both Windows and OSX are where they were at the beginning of 08 and Apples share has yet to really drop, as one month is hardly an indication of whats to come.

In fact so far MS is down more than Apple for the year.




RE: ya but last month..
By omnicronx on 3/4/2009 4:45:38 PM , Rating: 2
quote:
beginning of 08
* beginning of 09


Finally!
By FaceMaster on 3/5/2009 8:52:11 PM , Rating: 2
Apple sucks. This is what it deserves after all of those monopolistic actions it's taken.




By aguilpa1 on 3/4/2009 10:05:22 AM , Rating: 1
I think who over wrote this doesn't know where to put his points.




By Expunge on 3/4/2009 2:04:42 PM , Rating: 5
You don't own an apple?? I find that hard to believe since you skew/omit the facts like an apple kool-aid drinker.

You mention Apple and the cash on hand fact, but what you failed to mention was Dell sitting in 5th of US tech companies with 9 Billion cash on hand.

Sure it is not as much as Apple, but they are on the positive even during these difficult times with significantly more exposure. And Dell's net profit was 4.3% not less than .5% as you claim, just like Apples was 14.7%, but then I guess you can round it up to 15% since you are using a Mac.

So let's recap, Dell has over 4% profit and 9 Bil cash on hand, yeah that looks like to me a company that is going under in under 2 years as you claim. <insert sarcasm>

Look to see Apple burning though some of thier cash soon as their overpriced, underperforming, $2500 quad core systems do nothing but collect dust on the retail shelf right next to their $3200 8 core systems. If it was not for the iPod, Apple would have ceased to exist years ago. And once Jobs kicks the bucket they will start declining again to the abyss which they barely escaped from the first time.


By napalmjack on 3/4/2009 4:55:13 PM , Rating: 3
quote:
And if you 've ever used the Dell version, you'd know that it is slow and underpowered.


Come again?? Do you know anything about hardware?

I'll let you in on the secret about netbooks: they are ALL underpowered! That's the point!


By spudmovalley on 3/4/2009 5:04:40 PM , Rating: 2
No, I don't really know anything about hardware, just going off what our guys said. Then I clearly don't get it about netbooks, seems like a waste of time to me.


By ccmfreak2 on 3/5/2009 9:09:34 AM , Rating: 2
quote:
Dell's departure from the market will just serve to increase Macs market share.

quote:
No, I don't really know anything about hardware, just going off what our guys said.

So you admit that you really don't know anything about hardware, but you believe that if Dell fails, then Macs market share will increase? Dell is much more of a competitor to Gateway, HP, and Lenovo than they are to the Mac. Mac's market share might increase slightly, but not that much. For someone who is just looking at the business side of things, you need to look at each companies market -their target consumer.

Dell has always focused more on the college student/lower budget consumer. That's one reason why their products are offered at walmart. And with their product being offered at Walmart (you know, the world's LARGEST retailer), this places Dell in a sweet spot for targeting their consumer.

Mac's target audience is more of the big spenders/latest trend consumers. The people who are looking for the "hip" as opposed to the "practical". People who are looking to impress others as opposed to those who want a good product at a DECENT price. Bottom line, Mac's target consumer is not the low end consumer. And it is this target of people who have cut back on spending lately. Although Apple has recieved much more exposure lately, when tax refunds come in, and a computer is the goal (like several of my friends), they are more likely to go for a decent Lenovo for $600 than a $1500 Mac.

Why? Cost and software. The only thing Apple has to offer for software that can not be found for Windows is the Mac OS and FinalCut (which Adobe Premiere is a pretty good - if not better - replacement to that). Most people see this difference and don't find the Mac OS to be $900 better than Windows.


By ccmfreak2 on 3/5/2009 9:14:24 AM , Rating: 2
Sorry, got off track at the end. My point is that I find that Dell will stick it out due to the target market and low priced products. If Dell does go under, Lenovo and HP will pick up the customer base due to the similarities in products.

Apple will begin to find a difficult time surviving later this year due to the high prices. Will they go under? Probably not (I'm not that lucky!). But when the limelight fades off this "hip, new" company, the money will speak. That probably won't happen for another 5-10 years.


By Oregonian2 on 3/7/2009 2:09:05 AM , Rating: 2
How Apple does is more a matter of how Jobs does with his health than with anything else. His ability to spin hay into gold is priceless and anyone who comes after him is in the same situation that the Basketball coach at UCLA who came after Wooden: "no possible way of success".


By Sazar on 3/11/2009 2:42:46 PM , Rating: 2
FWIW, Dell makes the vast majority of it's money and profits from work with Small Businesses and the Government. It is the largest Government systems supplier for all client and enterprise products.

IIRC, Consumer products only account for around 20% of their revenue stream. I think this will rise depending on the product mix in the BRIC nations over the next several years.


By omnicronx on 3/4/2009 5:21:40 PM , Rating: 2
Dell uses the Z* series Atoms on both mini 10 and 12 models which run as slow as 1.33GHZ. (1.33ghz and 1.6ghz are the options) The 270 which most other manufacturers use is clocked at 1.6 GHZ. So anyone buying the 1.33GHZ models will find them slower than say the asus or msi brand netbooks. Not too sure why the Z540 atom @ 1.86ghz is not being used on a wider scale.


By spudmovalley on 3/4/2009 5:43:08 PM , Rating: 2
OK, school me on the netbook concept...is it form factor? its a low end notebook, right? Price? I mean, my Gateway is heavier, but with the NB you still lug around all the crap, what's another couple pounds? (unless you are a road warrior, then I get the heaviness thing). I can't sacrifice ability/capability/production for slower, smaller. I just don't get this one at all. Now if they had a big drive and really fast, that would make sense to me.


By noirsoft on 3/4/2009 7:31:37 PM , Rating: 2
It's the synergy of size & price. Besiudes netbooks, netbooks, laptops at the 10 inch or smaller size are close to $2000 since they pack in all the features of a larger machine.

If you want to take a computer with you all the time, there is a huge difference between a small netbook and a larger 15 inch cheap notebook. Heck, the power brick for most 15 inch models are heavier than a netbook. Okay, probably not, but it certainly feels like it.

I am also more inclined to take a computer with me everywhere if it is $350 and not $2000. Would I take an expensive laptop with me on a trip to another country? Probably not. But a netbook is fine. Even if it is stolen, the hit to buy a new one is not much.


By omnicronx on 3/5/2009 11:27:09 AM , Rating: 2
Its not just form factor, the CPU utilized in most netbooks (if not all) can be compared to desktop and laptop CPU's of 5-8 years ago.

That being said, I still surf the net play music and watch movies on my 6 year old PC, and that's exactly the market that netbooks currently reside.


By GaryJohnson on 3/5/2009 2:20:12 AM , Rating: 2
IIRC, the 'Z' chips tend to be pricier and have greater cooling requirements than the 'N' chips.


By omnicronx on 3/5/2009 11:25:00 AM , Rating: 2
They have a lower TDP, so I don't see how this is possible.
The 1.86GHZ Z5400 has a max TDP of 2.4W and the 1.6GHZ N270 has a max TDP of 2.5W. Pricer perhaps, but the difference in price can't be that much, and the cooling requirements are not higher as they run at lower voltages too.

http://ark.intel.com/ProductCollection.aspx?family...


By Siki on 3/5/2009 12:42:11 PM , Rating: 3
quote:
I have a masters in management - I really do know what I'm talking about here.


lol


By Master Kenobi (blog) on 3/5/2009 1:08:18 PM , Rating: 5
Yea, theres a real winner degree. How about a masters in economics or mathematics. Business/Management/Art/History/English degrees everywhere are utterly useless. Get a real degree, seriously.


By on 3/6/2009 10:47:54 AM , Rating: 2
Nice. Way to single out a large portion of the population. Planning on running for office soon? Inflammatory statements like that should garner broad support across the constituency. Might as well throw tomatoes and rotten eggs at them while you're at it. Last time I checked, having a post graduate degree was a good thing.


By mondo1234 on 3/4/2009 8:19:23 PM , Rating: 1
Another Jason McBlog. He completely misses that MS and Linux were up (.25 and 6% respectively) to focus on Apple down 2. You know that most people argue that it takes more than one quarter, but now we're down to 30 day averages? Where did "Apple continues to struggle" come from? I dont think the financial markets think Apple has been struggling for years much less "continues to struggle".

Jason, please show me "continues to struggle".

http://finance.yahoo.com/echarts?s=AAPL#chart2:sym...

Its just about the number of clicks folks and passion is a good way of getting them, even if it a poorly written blog.
Jason, I know you wont write an article on how MS's stock hasn't seen a substancial increase in over 5 years, but this article is almost as worthless as the 30 day references. Put some entertainment value in it atleast...


By rudy on 3/5/2009 12:06:42 AM , Rating: 2
lol you know nothing there the author is probably writing his article from a mac, jason mick is the biggest mac fan on the site. In fact his harsh view is probably laced with his hope apple will bring their prices down so he can pick up his next mac cheaper.


By xeroshadow on 3/6/2009 4:10:27 AM , Rating: 2
Didn't Apple have a record quarter recently(at least compared to other companies)? During all the economic turbulence I thought Apple stood out and bucked the downward trend. I don't understand why it is all now doom and gloom for them.


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