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Still Waiting for the Tipping
Point
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By all accounts, the goodies unveiled at Macworld will satisfy
most Mac user's cravings for new and better hardware and software.
The new iPodMini
should maintain if not extend Apple's dominance of the portable music
player market. Updated iLife applications have finally arrived. The
G5 Xserve will bring more power to enterprise customers.
While I'm happy to see such great products from a great company,
the cynic in me wonders how much of an impact this will have on
Apple's market share. Of course, market share is hardly the end all
and be all of a successful company. After all, Apple posts consistent
quarterly profits and has a hefty chunk of change in the bank. All
well and good.
It seems, though, that Apple still hasn't been making inroads when
it comes to market share. While it's clear that many companies exist
just fine in niches (BMW anyone?), market share equals security for
Apple.
It almost seems like a hopeless job to increase Apple market
share. No matter what Apple does or which cool hardware and software
products it produces, it can't seem to attract a mass audience. For
example, iDVD was designed to take advantage of the fact that there
has been a tremendous uptake in the DVD player market. Has the simple
and user-friendly iDVD boosted Apple market share? No.
Apple seems to be taking another kick at the can with GarageBand.
Jobs sees a good market for this product. However, are vast numbers
of people going to purchase a Mac because of Garage Band? Most likely
not.
Apple is still trying to replicate its success with desktop
publishing. However, the market has changed drastically since then.
Windows users can now purchase inferior products that compete with
Apple's software. There's little compelling reason to make the switch
to Mac when no product Apple produces can get past the "it's good
enough" attitude of people who use PC software.
To be fair, Apple's computer market share matters less now than it
did even a few years ago. The iPod, for example, generates scads of
cash for Apple and dominates its category.
However, Apple is able to research and develop new products based
on its profits from its computer line. The more successful it is
there, the better off Apple will be.
While market share may not have grown as expected over the last
few years, there are still some encouraging signs. Apple continues to
gain respect in the enterprise and consumer market. Its brand remains
strong. Its innovative edge is still sharp.
But I'm still waiting for the tipping point.
Stephen Van
Esch is the founder and president of
the
E-learning Foundry, an online training
resource for Mac users. Steve loves the Mac and is doubly bilingual,
since he's also fluent in Windows and French.
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