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Hardware

Apple Now No. 4 in Notebook PC Sales

Apple Now No. 4 in Notebook PC Sales
June 25, 2007 10:46AM

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Apple has been gaining market share for its line of notebook PCs over the past 18 months, and according to the latest data from NPD Group now ranks fourth in laptop sales behind HP, Toshiba, and Gateway. Apple's PCs continue to be known for their ease of use, said analyst Samir Bhavnani, and the now-famous TV commercials are a big reason.


Apple is certainly having a good month. The iPhone arrives this Friday with fanfare to rival any rock band's, and a new industry research report indicates that Apple's share of laptop sales in the U.S. retail consumer market jumped nearly two points in May, to 14.3 percent from 12.5 percent the previous month.

The increase in laptop sales puts Apple in fourth place among notebook manufacturers, behind HP Relevant Products/Services, Toshiba, and Gateway, and means sales of Apple laptops are growing more quickly than sales of Windows Relevant Products/Services-based machines.

The report, from industry research firm NPD Group, was released on Friday and indicated that sales of Windows-based notebooks grew by 37 percent, while Apple had a 65 percent increase, compared with a year ago.

The report also indicated that the company's share of sales overall in desktops and notebooks has increased as well, from 11.6 percent in April to 13 percent in May. Apple desktop Relevant Products/Services sales by themselves, however, were up only by 0.2 percent, to 10.4 percent.

Growing Notebook Sales

"Everybody's notebook business grew last month," Stephen Baker, NPD's VP of industry analysis, told reporters, adding that notebook sales overall last month grew by 40 percent, compared to a year ago. "But Apple's grew a little faster than the market overall," he said.

He added that Apple has been gaining market share for the past 18 months, and that the consumer market in general is embracing notebooks. With widespread wireless connections, powerful processors, and large-capacity drives, notebooks are being used instead of many desktop models.

As a result, Baker noted, desktop sales are declining overall, with Apple's "a little less" than others. Apple might also enjoy another boost soon, he noted, as back-to-school purchases begin to kick in.

According to a separate report in USA Today, Apple's home computer market share now stands at 7.6 percent in May, compared to 3.2 percent three years earlier.

Apple's 'Mindshare'

The increase reflects not only the numbers of units sold, said Samir Bhavnani, research director at Current Analysis West, but also Apple's increase in "mindshare."

Apple's computers continue to be known for their ease of use, he said, and the now-famous TV commercials are a big reason. They "highlight the issues that customers seem to have with Windows-based PCs," Bhavnani added. Apple is increasing its sales, he pointed out, even though Apple laptops' average selling price is over $1,000, while PCs sell at an average of about $800.

Apple's momentum in computers has been growing since the switch to Intel-based microprocessors was first announced in 2006, he said, and it's been propelled by the exposure to Apple-ness by iPod users. The recent release of MacBook Pro laptops using Intel's new Core 2 Duo chip also stimulated growth, he said, and the upcoming tidal wave of hype surrounding the iPhone launch can only help lift all of Apple's boats.

The Cupertino, California-based company might also have other, near-term product launches up its sleeves. Several industry observers are predicting, for instance, that new versions of the iMac are coming within the next few months.

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