Why Apple will shake the PC market
Apple’s brand has always been the choice of the people that had a taste in quality and design. Apple’s market share peaked at 15.8 percent in 1980 but that’s a quarter of a century ago and this was even before the introduction of the Macintosh. Apple has tied all things together with software, hardware, design and marketing in their hands. This might seem like a stranglehold to some but it has always led to a user experience that is missed for sure on the PC market. Now that Apple has made its leap to the x86 platform, namely the Intel platform, it won’t take much time until Apple truly starts to shake the PC market.
To understand why this will happen we should take a short look at the company’s history.
First it seemed that Apple has lost its “Think different” appeal because they had lost their “difference” namely the PowerPC processor from IBM. But if we think about it for a second it’s clear that Apple’s reputation never came from the hardware they used. Apple’s “difference” has always been the molded user experience. The “Think different” tag line isn’t only marketing, in reality it’s a statement that drives the company. Raw processing power doesn’t make the use of a computer feel different. It’s what you see everyday that makes it special, the visual effects of the OS, the streamlined product design. Apple is a design company, in a certain way they’re about fashion and they’re the most fashionable brand in the computer market that’s ever existed. What other company has annually design awards for Apple related products? Apple knows how to market their products, to make you feel different about their product, they market with style not with features. It’s not about the number of options you get, it’s about how well they integrate, how it makes you feel to use them. When you start using an Apple product it’s most often a design experience, you feel lightened and everything feels sleek and elegant. It’s like getting dressed for a dance party, and Apple makes you sway to the rhythm.
So why isn’t Apple leading in terms of market share we ask? Well because people live in herds, lets think about it. The IBM PC market including clones has gained its market share over the price. In the perception of people Apple has always been more costly, this isn’t always true and Apple was still worth its money if someone feels that design respectively art is worth money. But most people look at the price when it comes to technology. Another hurdle of technology is how to use it and when there are 2 friends of you who already own a certain piece of technology what would you do if you’re an unexperienced user that probably needs more than one hour of help? You stick with what’s been widely used and known within your acquaintances. If you don’t than you’re already thinking different and are a potential target for Apple’s product marketing. You see people are always flocking this can be good but often this has been bad because it’s not leading to innovation.
So was it wise from Apple to focus on design and user experience instead of gaining market share with whatever might be necessary? If Apple would have done so we wouldn’t have the most innovative brand in the computer market. Apple might have lost a lot of market share but they sure haven’t lost their spirit of innovation. This doesn’t always lead to immediate success but it keeps their people motivated. If share holder value would be the motivation Steve Jobs wouldn’t have started NeXT. He lost a lot of money with this company but in the end it helped him get Apple back into the race. The technology he developed with NeXT is used in Apple products. Apple sure needs a rising share holder value and they perform well in this but it hasn’t lead their decisions in the first place when they developed new products.
Apple’s products didn’t always get accepted by the public. The Apple III was a commercial failure, Apple’s Lisa a commercial failure, the Macintosh Portable a failure. The Apple Cube was pulled out because it wasn’t selling. Did this lead to extinction? No, Apple learned from their failures they’ve tried a lot and they failed a lot and this leads to experience you can’t buy for money. Apple always tried to thrive in terms of innovation.
Apple also had a lot of successful products that have been ahead of their time. If you’re ahead of your time you often don’t get the recognition you deserve. But here are some of Apple’s innovations that have sustained for decades. The Apple II was of high quality and had a lot of technical advantages at his time. The Apple Macintosh gained huge acceptance in the desktop publishing market due to its advanced graphics capabilities. This was in conjunction with the introduction of the LaserWriter and Pagemaker all at a reasonable price point. It’s only in the last few years that the Windows based market could make a dent in the DTP market. But many designers still feel more comfortable with the Mac. Apple’s Powerbook series was also a huge success. Apple missed this market for some time and failed with the Macintosh Portable. But they learned, tried again and they sure did it right. One of the reasons that helped Apple to succeed is that they gained a reputation as a quality manufacturer. What they manufactured was of high quality and that is what sticked over the years. Even if you open the case of a Mac, the interior work is also well laid out. Overall Apple’s products are very reliable compared to the PC market as a whole.
So now we’ve gained some insight on the history of the company and its corporate philosophy. Now let’s take a look at why this time they even will shake the solidified PC market with an over 90 percent share of Microsoft Windows operating systems. The switch to Intel was for sure one to stay competitive. Intel’s product line is widely used and their roadmap looks promising. But the switch from PowerPC to Intel processors also changed the public perception. Before Apple had an innovative OS but due to their processors it wasn’t compatible with a lot of things. From the outside buying a Mac has always had the feel of being somewhat out of the loop and maybe you might be missing something. People who know why a Mac was superior for them didn’t need think much about this. With OS X the choice of applications has been much wider. But OS X was introduced in 2001 in a time where there was already a Windows dominated market. Windows can do a lot of things and Windows XP is for sure a stable OS. The problem was if you already owned a Windows based PC you are in the upgrading loop. You could upgrade your copy of Windows even with the same machine, you can use all the software you’ve bought over the years. There are a lot of reasons to stick to Windows and they’re good reasons.
But still you can’t ignore that the user experience is by far better with OS X especially in combination with iLife. But people living in herds don’t like to change that radical. Now that Apple is using the same compatible hardware it doesn’t feel that much of a change to buy a Mac. The perception has changed, the “difference” that held back a lot of people namely the PowerPC processor is now gone. It’s the same hardware, nothing strange or unknown to most is now working in a Mac. This already helped a lot to change the people’s mind about an Apple computer. On top of it Apple has become a known brand with the introduction of the iPod and iTunes, which can be used with Windows. Apple has lost its alienated status and still has kept their identity, their “think different” spirit. Apple has truly evolved in a good way.
And here comes the reason why they will shake the market. Apple has always had stylish and admirable hardware and software. But until recently the change to a Macintosh felt more like a hard switch than a smooth and painless transition. With the introduction of BootCamp Apple has done themselves a huge favor. It’s now possible to keep old habits for a transitional period and still be able to taste the fruits of an innovative brand. Now Apple is competing head to head with all PC brands like HP, Dell, Acer and others. Apple innovates on their ground and competes with ease. Over the last two years they’ve gained a lot of attention by the media. Five years ago Apple wouldn’t be mentioned very often in PC centric magazines that mostly filled their pages with Windows or maybe even Linux related software and hardware. Now in some weeks they get mentioned on a daily basis in these magazines. With Intel processors and BootCamp it’s obvious that everyone wants to compare if Apple is superior like they always claimed. Now that the PowerPC processor difference is out of the way it shows that Apple is still innovative even in their way to apply common x86 technology. Sure Apple can’t market speed comparisons like they did with the PowerPC processor. But like we’ve seen at the beginning, Apple has never been about the hardware alone, it’s how they combine cutting edge technology with stylish design and a streamlined user experience, that is what makes the difference. Even with the same processors as are available for usual PC’s Apple shines in the media and hardware comparisons. It isn’t mainly benchmarking why Apple gets good reviews it’s the overall product design and the experience that gets the recognition and respect of the media.
Apple has gained great momentum in the media and the minds of the flock. Now even conservative people are looking at Apple Macs as an alternative because they can buy a new Mac, still use their old software as needed with BootCamp, but also enjoy the ease of use of OS X combined with cutting edge technology. Apple knows how to mold the latest available technology with superior design. Apple is the first brand that used mobile processors in their complete product line up. Sure there were products with the Pentium M in desktop casings but these products stayed in a niche market. But Apple has done it with their complete product line and with huge success. Right from the start Apple used EFI instead of the decades old BIOS to boot their computers. Apple has always dropped legacy technologies to push the envelope of innovation and it didn’t hurt them. Intel must be more than happy to have a customer that is able to build successful products with their latest products and to fully put them to use. New technologies are adapted at a fast pace by Apple compared to the rest of the PC manufacturers. This will obviously swing the market to Apple’s favor. With each new product line Apple can take full advantage of the latest technology, there are no legacy features that need to be kept that slow down the acceptance of cutting edge technology. “Never change a running system” is a guideline that’s often cited and sparsely followed. The more you change the more likely it is things break. Apple knows this, helps to bridge the gap but doesn’t compromise their goals. No one would think of upgrading their TV set or their refrigerator, they just work and that’s what they’re supposed to. Computers shouldn’t be any different, overclocking and casemodding has its market but it will never be the same market that Apple now fills the gap for. Apple’s product have an out of the box experience that is unmatched by any other PC on the market. Even the software feels sleek and OS X comes with iLife a package that makes a Mac user really productive from the start.
This doesn’t mean Apple will swing the whole market in favor of them but Apple now clearly shows why they always strived for the difference and this time they’ll get the recognition they deserve. And one thing is for sure the PC market will be much more exciting with Apple than without them.
While I can agree with your analysis, I believe the strongest differences between MS PCs and Apple’s Macs also stems from the targeted customers.
Apple’s always had the individual user as it’s focus. Of course times and technology changed to include a broader but still focused user groups. Microsoft and IBM targeted to corporation and made it’s sytem and hardware focus on management issues rather than individual users. Sure, the clone and self-build phenonimons created broader markets; but it wasn’t a part of the original business plan.
If Microsoft doesn’t solve their security management issues Apple could make headway within the corporate sphere as well. It would take a partner producing lower cost hardware restricted to the corporate or government purchaser. They would be enabled to give future guidance of sorts as well. Perhaps H.P. will fill that bill should Apple attempt to significantly enlarge it’s market share.
Meanwhile, I agree that Apple can make strong inroads in the PC individual and small business markets while expanding it’s traditional scientific and educational markets.
A good read.
The main reason the Mac will push up into 30%+ growth rates, is because OS X Leopard will NOT have Boot Camp, rather, Leopard will ship with XP API’s
(See iCringley as to why this is possible).
To make the switch to a Mac, yet run all those WinXP only applications at near native speed right in OS X (save for the nice OS X GUI abilities) will be a boon for Apple like no other.
This is why Leopard is being kept behind closed doors like no other OS launch in modern Apple history – and why in January, Steve Jobs will have a jump in his step we have not seen in a long time…
Just by his comments and overly chatty nature at the shareholders meeting – one can tell he can’t wait.
XP APIs in OSX are beyond unlikely; Mr.Cringley is not a programer and must not have talked to any.
I don’t think Apple wants 30% of the market; Just as they obviously are not interested in large corporate inroads. If they were, they would do simple things that corporations require for purchasing. Apple will take corporate purchases when they don’t have to bend over to pick them up. My guess is that Apple would like about 10% of the market. That is the 10% that real money can be made; The rest of the market is not fun or very profitable.
This is a very nice article.
roger