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Apple Computer Says Goal Is to Raise Marketshare

Tuesday, Febuary 25, 2003 08:20 PM ET Dow Jones Newswires

LA QUINTA, Calif. -- Apple Computer Inc. Chief Financial Officer Fred Anderson said the company's aim is to expand its share of the computer market.

Speaking at the Goldman Sachs Technology Symposium, Anderson said a "good intermediate" goal would be to reach 5% marketshare from 3% today.

He also said the computer maker's target is to get to $8 billion of annual revenue. Apple had revenue of about $5.7 billion in 2002.

Users of Macintosh machines from Apple also are "going to see more and more software coming out of Apple," Mr. Anderson said.

- By Mark Boslet, Dow Jones Newswires, 650-496-1366; [email protected]

Dow Jones Newswires 02-25-03 2020ET
 

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<BLOCKQUOTE>quote:</font><HR>Originally posted by Bjornbro:
Users of Macintosh machines from Apple also are "going to see more and more software coming out of Apple," Mr. Anderson said.<HR></BLOCKQUOTE>

I especially love that last line.
:D
 

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Bjornbro, it won't be long until I am part of that expanded market share for Apple.

How is you little boy/girl (I am not sure which you had)?

How far have you gotten into the Monster Thread?
 

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How is you little boy/girl (I am not sure which you had)?

Three weeks old today! She is doing fine and so is "mama".

How far have you gotten into the Monster Thread?

Well I'm reading a page per day at work (excluding weekends), so I'm on page 14 right now. Of course when I'm done there will be some pent up replies, which hopefully will still be valid. However, I'll have to finish reading the Did Dr. G finally get a Mac? thread before I make any replies, but if the "monster thread" has pulled ahead yet again, I'll finish that first. Still, if the "Did Dr. G finally get a Mac?" thread has gained more posts, then I'll have to finish...SHEESH! This "Bjornbro's Time Warp" will never let me out!
 

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Bjornbro, glad to hear that both of the females in your family are doing well. What did you name your little girl? Give her a hug for me.........I love little children. I once was given $50 by a grateful passenger in first class (I was riding all the way in the back on a student discount fare while in college) because I offered to help a mother who had a young child and a toddler to contend with, and the baby was screaming. For some reason, my body temp is usually high in that I am always warm (unless I have a cold, and then I am cold -- go figure). Anyway, I put the baby on my shoulder and within a few minutes he/she (I was not sure what the gender of the child was) was fast asleep. I walked up and down the aisle of the plane with this baby. This gave the mother a chance to calm her other child and there was peace on the plane. I even got the chance to sit in first class for about 10 minutes with the baby still on my shoulder. As I was going back to my regular seat, an unknown man in first class handed me a $50 bill (which today would be like handing me a $500 Canadian bill) and simply said "Thanks."

I guess I got onto Memory Lane..........or the Bjornbro Time Warp!!!!!!! :eek:

Don't spend too much time on the two thread bearing my name, not at the expense of your family, your job, your sanity........They will still be there when you have some free time...........albeit a "tad bigger", but by then you shall be retired and have time to go through the 13,394 posts. Good luck. :D
 

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Bjornbro wrote:
Speaking at the Goldman Sachs Technology Symposium, Anderson said a "good intermediate" goal would be to reach 5% marketshare from 3% today.

I wonder how they're going to get there? Last I looked, Apple's revenue was pretty flat over the past few quarters, so whatever they've been doing lately (Apple stores, switch ads, etc) doesn't seem to be driving sales up....

*sigh*
 

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Well, no, they're not up (or if they are, it's within a normal range, so it's not fair to say it's anything "real").

But, Dell is absolutelty killing the PC competition; everybody else is down, and PC sales overall are flat.

So, you have a niche-market hardware company, with fairly high initial purchase price, that isn't losing sales quarter-to-quarter. The only one who is gaining is a value-leader company in a market that has a lower intitial purchase price.

Since Apple has stated these are goals (which should be ambitious but within the realm of possibility) and they are weathering the storm quite well, one could argue that flat sales are consistent with that goal. If they weren't, Apple should be suffering like the 65% of PC makers who are losing year-to-year volume.
 

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gordguide wrote:
Since Apple has stated these are goals (which should be ambitious but within the realm of possibility) and they are weathering the storm quite well, one could argue that flat sales are consistent with that goal.

You could argue that. What I'm thinking, though, is that if sales are flat then either Apple isn't causing an appreciable number of users to defect from Windows, or the number defecting from Windows is roughly equal to the number defecting to Windows. There's also the possibility that Windows users are defecting but Apple users aren't, they're just not buying new Macs.

I've heard suggestions that the PC market is pretty much saturated (that is, the people who want a computer generally already have a computer), so the majority of sales from now on are going to come from people who are upgrading their current machine. Apple's going to have to convince these people that instead of buying a Dell, they should buy an Apple, and I'm not convinced they're doing that well enough right now.
 

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I think if Apple wants more market share they have to get their prices in line with the PC competition (I know their product is better, but you're preaching to the choir, you need to sell to Aunt Sally and that cross-eyed guy down the street). Can you imagine how many machines Apple would sell if they dropped their prices in half? People would view it like getting a BMW for Kia prices.

They also need to get their speeds up or have a decidedly large performance delta. If they can't beat them with GHz, then they need to have a machine capable of out performing the Wintel camp. Back in the early days of the PowerPC, it was really nice showing how much faster the machines were than the Intels of the day. These days, only carefully selected benchmarks will beat the Windoze guys... How about a quad G4? Where's the G5?

They really need to *WOW* people with price and/or performance. They need to make it so people can't use the excuses "they're so over priced" or " they are so slow" any longer...
 

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The new PowerMacs are a step in the right direction, as are the iBooks and the 12" PowerBook.

They are getting better for sure. but I think that a lot of the problem is that a lot of people look at price first, features second, and their actual needs last.

No one needs a 2.53 Ghz P4 or a Dual 1.42Ghz G4 to check their email, and if you want to do video editing there is no real reason to not look at a Mac, which offers a much cleaner, easier to use solution than WMM, MovieShaker, or just about any other movie editing software for PC (in the low end anyway).

--PB
 

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PosterBoy wrote:
No one needs a 2.53 Ghz P4 or a Dual 1.42Ghz G4 to check their email

There are a lot of things where you don't need that much power, but it would be nice. I've got a dual PIII 700MHz and a P4 2.26GHz, and while the PIII can do everything the P4 can do, the P4 does it a lot faster (e.g., builds can take over an hour on the PIII, but rarely go over fifteen minutes on the P4).

Apple needs to keep selling high-end machines to power users, if for no other reason than these users subsidize the R&D costs so that the technology can "trickle down" into the consumer machines. I'm not convinced Apple can continue selling PowerMacs and PowerBooks in the numbers required unless Apple starts addressing the performance gap (before it becomes too big).

and if you want to do video editing there is no real reason to not look at a Mac, which offers a much cleaner, easier to use solution than WMM, MovieShaker, or just about any other movie editing software for PC (in the low end anyway).

True, but how many people use their PCs to edit video? I'm not convinced that video editing is the killer app (or the tractor app, if you prefer) that will bring up the Macs market share.
 

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I don't think that Video Editing is the tractor app for Mac either, but it is one of them.

There are studies that show that many new computer users are looking for video editing and other value added features in computers these days. Apple is working hard to make sure that Macs have all these features which is a good thing.

Problem is, I dont think that they are catering enough to the people who just want to check their mail, the people who are looking for a cheap little box without a monitor attached.

If Apple would produce a cheap, low power tower with a lot of upgrade potential I think that they could increase their market share at a bit faster rate.

Of course, I dont see Apple doing this any time soon.

--PB
 

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Bjornbro, I named my daughter, Shaina, which is a Hebrew word meaning "beautiful".

PosterBoy, what is you take on the iMac vs the 17" AlPB for video editing (non-commercial editing)? Just curious.
 

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For 10 of the last 12 years, Macs were faster than Intel PCs running Windows. This didn't cause a huge groundswell of PC buyers going Mac, as we well know. Around the mid-90's Apple was selling $US 8+ billion a year; at the end they were a $US 6 billion company.

However, in the last 2 years we have seen some (difficult to say how many) switchers to the Mac platform from Windows and Linux users. So, in and of itself, I don't think speed is a critical issue with regard to market share.

Sure, it would be nice. But my guess is that should Apple begin winning the speed wars once again, it won't play a large role in getting people to switch. There must be other reasons, and I think Apple hinted at what their research has been telling them with the "more and more software" quote from Fred Anderson.
 

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gordguide wrote:
Sure, it would be nice. But my guess is that should Apple begin winning the speed wars once again, it won't play a large role in getting people to switch.

Speed may not be a compelling reason for people to defect from Windows, but it might be a compelling reason for people not to defect to Windows. If Apple begins to seriously fall behind in terms of performance, might not (some) Mac users think about defecting?
 

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<BLOCKQUOTE>quote:</font><HR>Originally posted by jfpoole:
*sigh*. As time goes on I'm not convinced Apple has the business sense it needs.<HR></BLOCKQUOTE>

I think that sometimes Steve's "vision thing" clouds it sometimes. I am sure they have it somewhere.

--PB
 

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<BLOCKQUOTE>quote:</font><HR>Originally posted by Dr.G.:
PosterBoy, what is you take on the iMac vs the 17" AlPB for video editing (non-commercial editing)? Just curious.<HR></BLOCKQUOTE>

The PowerBook can do the editing faster (due to the L3 cache) but the iMac can do the DVD Burning faster (due to the new 4x SuperDrive (vs. 2x on the 17 PB).

I think they are pretty equal, so the question would be "do you want to be mobile or not?"

--PB
 
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