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Reports claim the U.S. is becoming less of an influence on the PC market as developing countries emerge

The signs of economic downturn are showing up in many places around the United States form large companies laying off employees by the thousands to the bust in the housing market leading to significantly increased numbers of home foreclosures.

The lagging economy is evident in the technology industry as well and shows in the significant layoffs coming from industry giants like Dell and Motorola. The PC industry is feeling the softening economy in the terms of fewer computers shipped in the United States.

According to research firm IDC worldwide PC shipments in Q1 2008 grew by 14.6% to 69.5 million units. Estimates for the quarter were 13.2% growth, so the industry exceeded expectations. Despite growth in PC shipments worldwide, the U.S. market slipped to a year-over-year growth rate of only 3.5%.

IDC reports that the U.S. share of the worldwide PC market fell by more than 2 points to 23% compared to the same period in 2007. This drop is showing that the U.S. is becoming less of an influence and emerging markets in developing countries are becoming more important for PC makers. The top five PC makers in the world according to IDC in order are HP, Dell, Acer, Lenovo, and Toshiba.

At the same time the top five PC makers were seeing drops in shipments in the U.S. Apple was shipping more systems. InformationWeek reports that Apple shipments grew 32.5% to one million units compared to 762,000 Macs shipped in the same quarter last year. IDC also released a report recently showing that Apple was now in the top five U.S. computer makers with a firm hold on the number 4 spot.

The gain in U.S. market share by Apple could be attributed to the often more affluent Apple buyers. With Mac systems costing more than similar PCs, the typical Apple buyer tends to be more affluent and possibly less affected by the slowing economy in America.



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Eh?
By therealnickdanger on 4/17/2008 1:36:46 PM , Rating: 5
quote:
PC Shipments Fall as Mac Shipments Grow


quote:
According to research firm IDC worldwide PC shipments in Q1 2008 grew by 14.6% to 69.5 million units. Estimates for the quarter were 13.2% growth , so the industry exceeded expectations . Despite growth in PC shipments worldwide, the U.S. market slipped to a year-over-year growth rate of only 3.5%.




RE: Eh?
By masher2 (blog) on 4/17/2008 1:43:21 PM , Rating: 4
Followed by this non-sequitor as well:
quote:
Despite growth in PC shipments worldwide, the U.S. market slipped to a year-over-year growth rate of only 3.5%.


I think the only thing that actually "fell" was the US share of the total market...and that's only because the foreign sector is growing faster comparitively.


RE: Eh?
By Locutus465 on 4/17/2008 1:49:57 PM , Rating: 5
This post seems like a desperate attempt to create a conneciton between apples shippment increase and some sort of PC shipment decrease when in fact there is no such connection not to mention the fact that PC shippments actually didn't slip.


RE: Eh?
By Moishe on 4/17/2008 1:54:21 PM , Rating: 5
Job's Reality Distortion Field is in full effect. Even Jason Mick admitted in his last article that the media loves Apple. Here is another great example of "OMG Apple r0xx0rs".


RE: Eh?
By therealnickdanger on 4/17/2008 3:51:29 PM , Rating: 5
Well, I suppose a title claiming, "Worldwide Computer Sales Continue to Grow" wouldn't have been sensational enough.

Just gotta grind the Mac VS PC thing all day, every day!

I still love you, DT.


RE: Eh?
By Adonlude on 4/18/2008 4:54:52 PM , Rating: 2
Perhaps we need a more "apples to apples" comparison?


RE: Eh?
By KristopherKubicki (blog) on 4/17/2008 1:50:21 PM , Rating: 1
The title has been corrected.


RE: Eh?
By Locutus465 on 4/17/2008 2:29:15 PM , Rating: 2
Based on what I read it's more the relitive strength of US PC growth has slipped compared to developing nations which grew much faster...


RE: Eh?
By mondo1234 on 4/18/2008 3:39:56 PM , Rating: 2
If MS sold 100 mil copies of Vista in the first year, would that would mean that approx 40% of all new systems shipped with Vista?


RE: Eh?
By Moishe on 4/17/2008 1:48:25 PM , Rating: 2
I particularly like that this has been admitted in a "news" article.

quote:
With Mac systems costing more than similar PCs, the typical Apple buyer tends to be more affluent and possibly less affected by the slowing economy in America.


Are we finally going to admit that Macs costs more than PCs? :)

Also, Mac firmly holds the number 4 spot among US Pc manufacturers. That's not nothing, but it's hardly the #4 spot in the world.


RE: Eh?
By IGoodwin on 4/17/2008 1:50:19 PM , Rating: 3
Not only that, consider the following:

quote:
one million units compared to 762,000 Macs


Lets say Mac had a 5% share of the market last year, for estimation purposes. Then, total sales would be 20 times 762,000 at 15,240,000 units. 13.2% of that figure is 2,011,680. Which is larger than the 238,000 extra mac's sold by a wide margine; therefore, Unit sales in the US grew by 1,773,680. This would mean other computers had over a 7:1 sales ratio based on the increase in sales.

Therefore, the figures left out of this artical and the percentages presented give a very distorted picture.


RE: Eh?
By sprockkets on 4/17/2008 1:52:30 PM , Rating: 2
In other words, there is a decrease in the growth of PC shipments here in the USA.

Might have something to do with Vista. Don't take my word for it; take the word of all my clients I do business with.

To be fair, this recent install of Vista I am testing, I turned off Superfetch, and noticed the stupid endless hard drive activity dead, responsiveness back, and not having to wait as long for the computer to boot. And, per 3rd party sites, since Microsoft couldn't be bothered to note this on their site, I revealed the hidden cd audio device.

YMMV.


RE: Eh?
By MeTaedet on 4/17/2008 3:36:13 PM , Rating: 2
I am beginning to suspect that Shane McGlaun procured a cute guy holding an apple for Jason Mick to convince him to do his homework for him. Shane just swapped "Jason Mick" with "Shane McGlaun", it seems.


RE: Eh?
By Shane McGlaun (blog) on 4/17/2008 3:46:12 PM , Rating: 1
It's funny how if you write anything about Apple you are either called a hater or a fan boy. I am neither, the simple fact is that I don't care about Apple one way or the other. I owned a MacBook once, I hated it. I own an iPhone and love it. Give me the choice between a Mac and a PC and I'll take the PC every time. I'm rather indifferent to brands of computers on the whole. I roll my own.


RE: Eh?
By masher2 (blog) on 4/17/2008 3:57:28 PM , Rating: 6
quote:
It's funny how if you write anything about Apple you are either called a hater or a fan boy
That's why I stick to safe, noncontentious issues like climate change.


RE: Eh?
By darkpaw on 4/17/2008 4:05:56 PM , Rating: 2
OK, this has to be one of the best comments of the year so far.


RE: Eh?
By ImSpartacus on 4/17/2008 4:27:30 PM , Rating: 2
Quite epic indeed. Wow, that was brilliant.


RE: Eh?
By KristopherKubicki (blog) on 4/17/2008 6:26:56 PM , Rating: 2
Brilliant :)


RE: Eh?
By just4U on 4/17/2008 11:46:50 PM , Rating: 2
I'd say give that man a " 7 " if there was such a thing! Sometimes you just have to save keeper lines like that for the oportune moment.


RE: Eh?
By ImSpartacus on 4/17/2008 11:59:03 PM , Rating: 2
Pfff, concrete numbers are for babies. Just put an infinity sign in there and be done.


RE: Eh?
By Locutus465 on 4/18/2008 12:14:40 AM , Rating: 2
This the single most well deserved 6 I've ever seen. I hope you don't mind but I might steal this quote :)


RE: Eh?
By hiscross on 4/18/2008 12:30:54 PM , Rating: 1
Or like what liberals call Irresponsible safe sex better known as abortion.


RE: Eh?
By clnee55 on 4/21/2008 4:03:20 PM , Rating: 2
quote:
That's why I stick to safe, noncontentious issues like climate change.


It depends on you use a Mac or a PC to study climate change. You are not that safe.


RE: Eh?
By ImSpartacus on 4/17/2008 4:37:21 PM , Rating: 2
Can you honestly tell me that an article titled "PC growth falls, Mac growth increases" doesn't draw any premature conclusions for the reader?

quote:
The gain in U.S. market share by Apple could be attributed to the often more affluent Apple buyers. With Mac systems costing more than similar PCs, the typical Apple buyer tends to be more affluent and possibly less affected by the slowing economy in America.


So Mac buyers are richer? PC's are the poor man's machine? I love Macs just as much as the next man (Macbook Pro = win), and PC's have a purpose (Gaming FTW), but I don't expect to see any bias in the news articles I read.

How about you don't bias Mac's or PC's, then you wouldn't be considered a hater or fanboy. No one said it's an easy line to walk, but your a journalist for god's sake.


RE: Eh?
By MeTaedet on 4/17/2008 5:24:17 PM , Rating: 2
No, I wouldn't call you a "hater" or a "fanboy". The most accurate term is perhaps "shill", but that's just a tad too severe.

This article and the one written by Jason Mick recently, when you strip away the verbiage, essentially convey to the reader:

"Apple products not as bad or unpopular as you thought. Here why don't you buy some? Everyone else is doing it."

Even if your intentions were not to bolster sales, the articles still had (or, rather, may have) that effect. If that were stripped away, what would be left? The effect of transmitting some truly uninteresting and useless information to a phlegmatic audience? I just don't see the point. And taking into consideration that both articles have featured some numerical inaccuracies, dubious conclusions, disreputable citations, and problems of basic logic, perhaps you'll forgive me for calling your motivations into question and insinuating semi-facetiously that Jason Mick wrote your article on your behalf at the price of sex with a handsome, young, coquettish buck seductively presenting an apple.


RE: Eh?
By just4U on 4/17/2008 11:54:46 PM , Rating: 2
How do you figure that? Bolster sales of Mac's I mean. Last time I looked there wasn't a diehard following of Apple lovers frequenting these forums. ( I know there's a few out there).

If you ask me, DailyTech post's articles that are going to get comments. Sure they use some catchy lines and but it's more or less the feedback that results from it all that's the main thing. There are just certain topics that people zone in on more then others.

I've heard that word used a couple times today .. What the hecks a Shill? Before today I'd never heard of the word.. so curious.


RE: Eh?
By MeTaedet on 4/18/2008 5:10:05 AM , Rating: 2
Where? On DailyTech? I hadn't seen the word once before I made my post, nor anytime after. So, if you are suggesting that I was simply parroting others' sentiments, you are mistaken.

As to arguments in your first paragraph, why would a sensible person preach to the choir? What would be the sense in targeting pro-Apple propaganda to a demographic that already enjoys and purchases Apple products when you have an anti-Apple crowd out there ripe for the picking? That's the group in which they take the most interest, I assure you.

If you don't think articles like these, dissimulated advertisements presented as legitimate new items propped up against spurious or questionable sources and data, have any effect on the average, highly suggestible, easily manipulated person, then you are terribly naive. Although, I will grant that Dailytechers may be so entrenched in their pro-PC feeling that they would never even begin to think to defect to the other side.

So, I believe that you're either overestimating the intelligence and/or imperviousness to suggestion of the Dailytech crowd, or the sense and/or knowledge of those would might be inclined to hire a Dailytech shill to advertise to said crowd or both.

And I will also admit that Shaun and Jason probably are not shills, but that leaves me wondering what their motivation for posting this crap may have been.


RE: Eh?
By just4U on 4/18/2008 8:45:11 PM , Rating: 2
I just don't see it. Tech minded people are more likely to browse this over and roll their eyes. Not rush out and purchase a Mac. I think DT gives us just a wee bit more credit than that.


Statistics
By 325hhee on 4/17/2008 1:47:14 PM , Rating: 5
I hate statistics with a passion, all it's good for is spinning things around. If I had 1 million PC units and my sales were down by 10% fine, we have 1000 less units, then then we have the mac, they have 100 units and sold 25 more, wow a huge whopping 25% increase. Big fricken deal 25 of BS is nothing, compared to 900k.

Why do people not just give the hard numbers and stick to it, statistic percentages are just crap.




RE: Statistics
By nosfe on 4/17/2008 1:53:00 PM , Rating: 2
its like with politicians, they always use percentages when they are trying to cover up the truth about something


RE: Statistics
By Moishe on 4/17/2008 1:57:25 PM , Rating: 2
Politicians are trying to cover something up 99.999991% of the time. At least that's what I hear :) I think that's a conservative number though.


RE: Statistics
By mikefarinha on 4/17/2008 4:25:54 PM , Rating: 2
quote:
I think that's a conservative number though.


No, I think that's the liberals number.


RE: Statistics
By afkrotch on 4/17/2008 2:09:18 PM , Rating: 2
These statistics are all kinds of jacked up.

LIke I sell 1 mil computers each year and I sell 50% more each year after that. Next year at 1.5m. Next year at 2.25m. But the next year was only 40%, so only 3.15m computers sold, instead of 3.375m

While Apple sells 100 computers each year and they increase that by 10% each following year. But the latest year, they went up to 11%. ZOMG! That's news worthy.


RE: Statistics
By retrospooty on 4/17/2008 2:11:50 PM , Rating: 3
"I hate statistics with a passion"

7 out of 10 people disagree with you ;)


RE: Statistics
By bhieb on 4/17/2008 2:50:19 PM , Rating: 3
Hey 68.5945% of all statics are made up on the spot


RE: Statistics
By Omega215D on 4/18/2008 3:05:19 AM , Rating: 2
8 out of 10 voices in my head say I'm not crazy... =P


RE: Statistics
By Some1ne on 4/17/2008 2:53:57 PM , Rating: 2
quote:
Why do people not just give the hard numbers and stick to it, statistic percentages are just crap.


Underlying your question is a much more interesting one:

Why is there now so much pro-Mac bias at dailytech/anandtech?

...I think they've all been bought off by Apple with free unlocked iPhones and Macbook Airs with integrated optical drives.


RE: Statistics
By clnee55 on 4/21/2008 4:09:47 PM , Rating: 2
quote:
Why is there now so much pro-Mac bias at dailytech/anandtech?


Why is there so much Mac hater in this forum?


RE: Statistics
By Smartless on 4/17/2008 4:51:11 PM , Rating: 2
"90% of statistics can be made to say whatever you want... 50% of the time."

I like that commercial.


PC Growth was greater in US than for Mac
By giantpandaman2 on 4/17/2008 2:47:24 PM , Rating: 6
Here's the only article that I could find with hard numbers.

http://www.infoworld.nl/idgns/852573C4006938800025...

By simple calculation 15.96-(15.96/1.035)= .54 or 540,000 unit increase in US PC shipments in the first quarter as compared to last year. This is compared to the "whopping" 32.5% growth of Macs which was only an increase of 238,000 units. Simple math, an increase in a tiny number will give you a huge increase in %, but not necessarily and big increase in absolute numbers.

Honestly? I don't like this article. It's misleading and it doesn't have the hard numbers available or cited in it. I expect these poor number games from shitty media outlets/reporters who failed basic math, not from DT. There should be a rule that you can't cite percentages unless you have a link to the hard data where the percentages came from.




RE: PC Growth was greater in US than for Mac
By bill3 on 4/18/2008 12:33:38 AM , Rating: 2
It's just dailytech. They're so biased. This is just another Apple blowjob and attack on MS. Also incredibly innacurate if not just stupid, like most Dailytech FUD.


By masher2 (blog) on 4/18/2008 7:06:04 PM , Rating: 2
> "This is just another Apple blowjob "

Come now...there have been dozens of negative stories against Apple here just in the past year, particularly in stories about the iPhone, or Apple's heavy-handed attempts to protect their patents and trademarks.

You can argue this particular story sensationalizes the facts (and I'll even agree with you), but there's really no evidence of a pro-Apple bias here.


RE: PC Growth was greater in US than for Mac
By Realtosh on 4/18/2008 4:37:21 PM , Rating: 2
<obligatory statistics comment>
"There's lies, damn lies, and then there's statistics."
</obligatory statistics comment>

Enough of that.
Let's look at what your calculations tell us.

"15.96-(15.96/1.035)= .54 or 540,000 unit increase in US PC shipments"

Of that..
"32.5% growth of Macs which was an increase of 238,000 units"

So... 238,000/540,000= .44, which means that 44% of all computer unit growth in the United States were Macs.

That's a pretty good place to be. With a much smaller installed base (past) as many comments have reinforced, Macs account for close to half of all growth (present). Apple has quarter after quarter of 40%-60% of Mac unit and revenue growth. If the future looks like the present more so than the past, then Macs ought to become aprox half of all PC shipments. In fact, if Apple maintains the unit growth trend of the past couple of years, eventually there will be more Mac PCs shipped than non-Mac PCs (future).

Also interesting is that the average cost of Macs is much higher than the average cost of PCs. Furthermore, the average cost of Macs is increasing, as are gross profit margins. Meanwhile the average cost of PCs is dropping, and the profit margin of PCs in general is razor thin. So Macs are getting an increasing share of the premium PC market, while opting not to fight in the bargain-basement segment of the commodity PC business. In fact, many PC manufactures charge much more than Apple for higher end machines with similar specs, in order to make up for losses in selling the low-end cheapo PCs at the bottom. So Apple can sell a high-end system at the same price and make more money because they are not losing money selling low-end boxes.

Based on specs or features, Macs cost similar or slightly less or slightly more than comparable PCs from Dell, HP and other large PC manufacturers. Many of your readers should do actual cost comparisons to realize that the Apple of today has aggressive pricing on great computers. In the areas that Apple chooses to compete in, namely mid and high-end computers; Macs often cost less than comparable Windows boxes. At the bottom end of the market, where manufacturers cut specs in order to compete on price alone, Apple does not participate. On the other hand, selling PCs in that low-end space is not profitable.

Although, the article didn't present a clear picture, there were no misstatements of fact. The writer just doesn't seem to understand the market dynamics that are creating the sales growth figures that are presented. The actual estimated sales figures as calculated by giantpandaman2 actually tell us a more interesting story, that even gpm2 doesn't see. If we had also been given PC revenue growth, instead of just PC unit growth, the differences would be more pronounced; as Apple has a larger share of the premium PC market. Apple is growing units and revenue at the top-end by selling better machines for less, while other manufactures are struggling to maintain unit growth numbers by losing money at the low-end with severely-limited cheapo PC boxes to maintain their units sold numbers.

<witty, sarcastic comment>
I wonder which of those two business model scenarios is sustainable for long-term success.
</witty, sarcastic comment>


By aussie3138 on 4/24/2008 1:55:13 PM , Rating: 2
Realtosh,

I find that stats are useless. Maybe helps the raw numbers but working in Real Estate, being forced to use Marketlinx/Tempo to get our information puts the stats in a different world.

We are "forced" to use Windows and MSIE.

Now hopefully the iPhone will change that backward MS controlled thinking.

Peter


By Realtosh on 4/19/2008 1:47:25 AM , Rating: 2
This Infoworld Nederland article that you quote is not the only article with hard numbers. Even worse, many of the numbers that it quotes are wrong, some as much as a whole magnitude wrong. For example, Apple has been reported to have sold more than 1 million units , but this IWN article puts the number at 95,000 . This isn't even close to being right, not even in the ballpark.

Apple has usually done better than both the Gartner and IDC estimates . Anyway, we'll find out next Wednesday. The point is that the US PC market is just barely keeping up with year earlier unit numbers. And to do so, many low-end PCs were shipped at money-losing unsustainable loss leader pricing. Compare that to Apple, who is increasing unit growth as well as average price and even gross profit. Apple is not being forced to literally give away computers in order to maintain year over year unit numbers. In fact, Apple is increasing their share of profitable PC sales by offering better prices at the upper end than other PC manufactures, while opting out of the profitless stripped-down PC market.


Statistics
By Pythias on 4/17/2008 2:18:44 PM , Rating: 3
You can make 99 percent of statistics say anything you want...78 percent of the time.




RE: Statistics
By Gravemind123 on 4/18/2008 1:04:27 AM , Rating: 2
90% of all internet statistics are made up and 66% of people believe them anyway.

And a slightly on topic and amusing quote from Anchorman: "Sex Panther, 60 percent of the time, it works every time."


Great fun on the DT forums!
By ToeCutter on 4/18/2008 9:58:34 AM , Rating: 2
I love when the DT bloggers chum the waters!

Perhaps Monday someone can post an article critical of Vista so we can compare those posts to comments posted here?

Besides, Apple is on the ropes, that house of cards is gonna collapse any day now, clearing the way for Vista's World Domination!




RE: Great fun on the DT forums!
By strmbkr on 4/18/2008 11:26:08 AM , Rating: 2
"Absolute power rocks Absolutely", but where's the fun if there's no one around (Apple?) to kick around?


Could it be....?
By 67STANG on 4/17/2008 3:31:20 PM , Rating: 3
Does the fact that Best Buy is now selling Mac as well as PC have anything to do with a rise in sales figures?

Personally, I like the increase market share Apple is getting... Everyone who knows anything, knows that Apple's "more secure than windows" motto is largely due to the fact that they have much less exposure (numbers-wise) than the PC market....




%
By d4a2n0k on 4/17/2008 3:31:32 PM , Rating: 3
Doctors say that Nordberg has a 50 - 50 chance of living, though there's only a 10 percent chance of that.




PC is mac
By Randum on 4/17/2008 4:35:33 PM , Rating: 3
You mean PC as in "Personal Computer". NEWSFLASH, macs are PCs....

You mean to say, "Windows Based PCs" and "MacOS based PCs"??

Who the hell decided that Macs arent personal computers? Oh yeah the Emo kids, and people who use macOS and think its great cause the pricetag is higher! Smart people, those mac users...




By callmeroy on 4/17/2008 2:32:37 PM , Rating: 2
I agree its funny how people use % to play with numbers...

Don't look at the percents for things like this show the raw numbers...

If an item's % gained was greater than another's but its still equaled less says....all that data says to me is they had a good season.




60% of the time...
By Reclaimer77 on 4/17/2008 2:51:43 PM , Rating: 2
..it works every time.

Discuss.




Uninformed Consumers
By prenox on 4/17/2008 5:49:34 PM , Rating: 2
It could be because the average consumer thinks their 3Ghz+ P4 is just as good as the newer lower clocked processors just because it has more Ghz. I know one of my friends seriously thought his 3.4 P4 was faster than my 2.4 Ghz Q6600.




PC Shipments <> PC Purchases
By teckytech9 on 4/17/2008 9:09:34 PM , Rating: 2
PC manufactures can claim to ship all the PC's they want to their distributors and retailers. These are misleading numbers since it does not reflect the actual number of PCs sold.

There was a time not so long ago that companies were selling their own goods and services to themselves, trading with each other (fiber swaps), and claiming it as increased revenue. When the SEC found out of the scheme (inflate the numbers so the stock price goes up) then the practice stopped.




Losing credibility
By Domicinator on 4/17/2008 9:10:04 PM , Rating: 2
This link paints a different picture:

http://www.techreport.com/discussions.x/14574

This site has lost major credibility with me. I'm a tech website junkie, but lately, whenever I come to this one, there's always at least one article where I'm like, "WHAT??!!"

A lot of stuff I have seen on the web today has told the real story on this, but AnandTech has turned it into a "Mac rules" article. I don't get it.




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