The Mac 'Seems to Defy the Laws of Economics' [Charts]

The Mac 'Seems to Defy the Laws of Economics' [Charts]

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The Mac 'seems to defy the laws of economics', says Needham's Charlie Wolf. Apple's computers cost more than its competitors at an average $700 but its market share has grown in 10 out of the last 11 years.

"The only explanation that we see," writes Wolf, "is the now-mythical halo effect. Beginning with the iPod in the middle of the past decade and then extending to the iPhone and iPad, a meaningful number of Windows users who bought these products seem to have switched from a PC to a Mac... What should be underscored is how unique the Mac phenomenon is. Indeed, it's the only situation we've encountered where shifts in the demand curve completely swamped movements along the curve itself. In the face of rising relative prices, we view the Mac's success as the rare instance where sales increased in the face of rising prices."

This same situation does not apply to the iPhone; however, Wolf says this may have more to do with geography and carrier business models than the belief that screen size is a major factor.

"The iPhone's loss of worldwide market share," he writes, "chiefly reflects the shift in smartphone market share from developed, postpaid markets to emerging, prepaid markets. This shift was not driven by a change in consumer behavior but rather by rapidly falling prices of smartphones, especially in Asia Pacific, which induced feature phone users to switch to smartphones. We calculate that the iPhone's share of the smartphone market would be over ten percentage points higher were it not for the migration of smartphone sales from developed to emerging regions."

Take a look at the charts below for more details...

[via Fortune]

The Mac 'Seems to Defy the Laws of Economics' [Charts]

The Mac 'Seems to Defy the Laws of Economics' [Charts]
Nat - April 3, 2014 at 11:04am
I can relate to this fully. I once wanted a computer good enough because of price and I was wrong. Month after month from beginning my experience with PC got worse. Random third cookie problems which was never solved, slower loadingartist which I didn't even download, then removing blue screens and in a pattern I would start up again, remove it, then in minutes it shows up again. At some point it stopped and now win7 just became 98'. That was the last draw since I couldn't do anything but get someone to fix it and after a month and a half, the only solution to this was reset it like the first day I owned it. Can't wait to finally sell this bulky thoughtless crap and get a MacBook Pro retina 15". Wish I realized the reviews sooner.
Nitro Junkie - April 3, 2014 at 7:49am
Maybe it's because they finally realized the other products they were buying were junk and were constantly having to be fixed or serviced because they were cheaply made or riddled with viruses and malware. That's why I switched to a Mac. I was sick of the constant crashes, freezes, and blue screens along with malware/virus bullshit. And also having to pay every year for descent antivirus protection that didn't work half the time. Last PC I bought was a HP laptop and within the first week or so it was riddled with malware/viruses and freezing/ crashes. Even though it had the so called best antivirus money could buy. Funny thing was is that it had hardly been used. Same thing happened with the android phones I had before I went to the iPhone. Had nothing but problems. I got sick of the bullshit and all the money I was spending to get them fixed. So I bit the bullet and finally switched. I've never been happier. The funny thing is before I switched to apple products I said i would never switch or buy any type of apple product because they were too expensive and wasn't a fan of their products even though I had never used or tried any of them. Boy was I wrong. That's what I think the problem is with a lot of the people that come here bitching and bad mouthing apple products. They're assuming shit. Just like I used too. Or they're just trolls that are paid by Samsung or other apple competitors.
Mike - April 3, 2014 at 9:54am
Linux is a lot cheaper, free actually, and no viruses :P
Manolisk33 - April 3, 2014 at 10:33am
I tried configuring a Linux PC once. It took me all afternoon and at the end it wasn't stable at all. I lost about half a day, I'd say that is about 4 working hours, so that's about 60€. Not free. Thankfully, I stopped there and it didn't waste any more money. The same goes with all the other "not as expensive" products. If I have to spend my time on it, it costs money. It is really sad that people who work at the software/hardware business do not realize what many of us want from our devices. Samsung keeps advertising speed, like that is going to convince anybody who simply works flawlessly with his Mac or iPhone. The problem is Apple has no competition, so they can continue to raise their prices and we, the consumers, are the ones who lose from the situation, not having any other options.
Nat - April 3, 2014 at 10:59am
Nitro I feel you. So easy to tells those whiny samshitters off.