mac

The extraordinary thing about Macs is its ability to convert sales into profit — no other computer manufacturer does it as well as Apple. For every $100 worth of computer that Apple sells, Apple makes $19 of profit whereas competitors are lucky to make $4. That’s more than 4x the margin, which is amazing.

PC makers feel the sting, but Macs still comprise less than 7% market share so Microsoft hasn’t felt the same kind of pressure. The Redmond company soon will, however. In Apple’s latest quarterly report, Macs grew 21% compared to the previous year’s quarter, over a time when the overall PC market is flat. Apple hasn’t done as well since 1995.

Apple has traditionally focused on the high end market; but more and more, Apple has been willing to compete in the middle. That’s why Apple is still selling the the non-retina MacBook Pro, the original iPad mini and the iPhone 5C, even though those products aren’t likely to garner the same high customer satisfaction scores that Tim Cook often brags about.

While Mac units shipped grew 21%, revenue only grew 18% — evidence that the average selling price of Macs sold has declined. This is a signal that Apple intends to grab market share.

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Didn’t know what to write today, and then @nilanp came to save the day:

My answer to that is great design is everywhere. Lots of tech companies have great design. The problem is not everyone cares.

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Mac computers have been steadily eating away at Microsoft’s share of the PC market the past few years; enough so that Panos Panay appointed the MacBook Air as the Surface Pro 3’s competition.  As PCs become increasingly lifestyle products, the Mac will continue to gain share.

When we say Macs are amazing, you’re probably thinking about its sexy look and premium finish; it’s proprietary software; it’s reputation for reliability (sometimes undeserved); the slick commercials; the aspirational Apple brand; or perhaps even unwarranted PR hype.

But you’d be wrong.  The most amazing thing about the Mac isn’t all those things, things that drive market demand; it’s Apple’s peerless ability to convert demand into profit.  And that’s about good old fashioned operations.

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For 13 years, David Pogue was the tech columnist for the New York Times before making a move to Yahoo in October last year. Pogue was not a fan of Windows 8 or the previous Surface Pro, so imagine everyone’s surprise when he came out with a positive review of the Surface Pro 3:

If you own or carry around both a tablet and a laptop, then the Surface is calling out your name. There’s nothing like it. It’s so much better than the sales figures would indicate. We, the buying public, are not giving it a fair shake. If this marvel of engineering doesn’t lift the Microsoft hardware curse, I don’t know what its designers are supposed to do.

What’s more eyebrow-raising is the video review that accompanied it, which is probably the most creative and entertaining tech gadget review I’ve ever seen: it’s a spoof of the “I’m a Mac and I’m a PC” commercials that Apple ran before.

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