I love Macintosh computers. I love everything about them: the way they look,
the way they operate, even the little sounds they make. When the new
Titanium laptop came out, I considered shoplifting for the first time
in my life.
But my Mac appreciation makes me an odd duck, considering that Mac users
have become such a rare breed. According to research firm IDC, Steve Jobs"
company now holds an almost invisible market share, having dwindled
to 3.5 percent.
Its market share number isn't the only grim statistic for Apple. The
company's usually healthy share of the education market -- its savior in
the face of close to zero use at the enterprise level -- has eroded. It slid
from 37 percent in the 1999-2000 school year to its current level of
26 percent.
Of course, the current slump in the PC market doesn't help. Apple has seen
its PC sales dip like those of other PC makers. The company's third-quarter
profit fell a breathtaking 47.5 percent. Whew.
And what about the company's US$50 million ad campaign to lure Windows
users to switch? According to one recent report, Apple is converting only 0.9
percent of non-Mac users who visit its Mac stores. (But the commercials were
really cool, weren't they? Just like Mac.)
What Apple Needs
Apple's tiny piece of the market pie could expand if it would do three
(difficult) things.
First, Apple needs to offer the blazingly fast processor speeds that are
available in the PC world. As Intel breaks the 3 GHz barrier, making the
highest-end Dells and Toshibas faster than a speeding bullet, Apple must
be able to make similar claims.
I don't want to worry that after I plunk down the cash for a Mac (still
pricier than its Windows counterpart), I'm going to have to stare
longingly at how fast my colleague's Dell is moving.
Make It Work
Second, Apple needs to embrace Windows compatibility. We're living in
a Windows world -- that's a harsh truth, but life isn't always pretty -- and
if Apple could offer product that admits this, we users could breathe easier.
The company has done this with OS X, but the policy needs to be extended. Take
the iPod, for example. Until recently, the iPod could only be used with Macs!
How's that for a business strategy?
A company launches a snazzy new product
in a major growth market, and it's only compatible with 3.5 percent of the
buying public. (continued...)
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