NPD: Apple Rules High-End Retail Computers

May 22, 2008 By Geoff Duncan

NPD: Apple Rules High-End Retail Computers

A new report from the NPD Group concludes Apple has captured two thirds of the retail market for computers costing $1,000 or more.

According to a new report from research outfit The NPD Group, Apple has done more than carve out a niche for itself in the high-end retail computer market: it’s actually in a dominant position. NPD found that Apple accounted for 66 percent of all U.S. retail computer sales for systems costing $1,000 or more during the first three months of 2008. Among desktop computers, that figure is even higher—70 percent—although among notebooks it’s still a startling 64 percent.

NPD has also concluded that Apple accounted for 14 percent of the overall U.S. retail computer market, with Apple notebook computers showing 50 to 60 percent growth year-on-year, while Windows-based notebook computers stagnated during the same period, showing zero percent growth in sales.

NPD’s figures only consider sales at retail stores, such as Apple’s own retail stores and Best Buy, and do not factor in online sales. Under NPD’s metrics, virtually all of Apple’s computer offerings count as “high-end” computers, since nearly all carry price tags over $1,000. Apple currently operates over 200 retail stores, with additional stores planned.

NPD attributes Apple’s success at retail in part to Apple’s retail stores—where no competing computers are available—as well as the market’s tepid reception to Windows Vista and the success of Apple’s much-loved (and much-parodied) “I’m a Mac/I’m a PC” advertisements featuring humorist John Hodgman in the role of a PC.

Showing 7 comments

Andres at 12:15pm 27th May 2008 "High end" or expensive, people get price tags confused with quality.
The macs I have used are generally equal in the "reliability" factor if not worse than any PC I have used.
The majority of opinions formed on PC vs Mac are from commercials, bias advertisements, and looks.
If you look at every piece of hardware on the machine, you can almost always get it cheaper on PC.
Macs seem to be winning people over with the user friendly aspect, and Microsoft seems to have dropped the ball with Vista.
However, there is a HUGE number of other operating systems available to users on PCs.

Macs can be powerful and fast- arguably easier to use- yet they are very expensive.
Every PC I have ever built has been under half the cost of its Mac counterpart- Runs beautifully stable and is more computable with the applications I need, and the development environment I want.
billn at 3:07am 23rd May 2008 It's not (hardly) about vista, it's about the wow factor. Most Apples leave you wanting - a PC is typically a PC (so far) whoever makes it.

It's all about design.
pete at 12:47pm 22nd May 2008 To MJ:

So Dell, HP and others do not sell systems over $1000? You couldn't be further from the truth. You can also pick up Dell systems at your local Best Buy now too. Along with Gateway, HP and others.
Matt at 11:23am 22nd May 2008 With more and more people designing web sites on their home computers, and for using them for apps other than office, it's clear that Mac speaks to a greater audience. Also, with the dangers in ID theft, and computer hackers, theirs a vulnerability diverted to some degree by also owning a Mac. And lastly, they look so cool. Other companies like Dell-HP etc try to be cool with a skin or one solid color. Well, we appreciate the effort, but that's just not enough. At least Sony understands the design idea. But I think they are the only ones.
MJ at 10:28am 22nd May 2008 it's easy to own a market share when you are the only player in town...
these numbers are for brick & mortar sales of computers over $1000

hmm, that exludes DELL and most other desktops that all cost less than $1000. apple only sells computers over $1000, so of course apple looks like it is doing well in that catagory

these numbers were cherry picked to boost apple's image
pete at 10:02am 22nd May 2008 No suprise here, Dell, HP and the others have had very poor attempts at creating a minimalistic, quality product like Apple.

The Windows-based system builders need to create innovative products that use high quality parts, not junk straight out of China.
James at 9:45am 22nd May 2008 I think we can all thank Vista for Apple's growth. I know a lot of people that figure "if I need to learn a new OS, it might as well be Apple instead of Vista".