Thu, 19 Feb 2009 Mac sales fall six per cent in January
Research firm NPD Group report a disappointing month for Apple
Apple's year-over-year Mac sales fell 6 per cent for the month of January, according to a market research firm that tracks monthly computer sales. Apple's drop came as monthly sales for Windows PC grew by 16 per cent over January 2008, NPD Group reported.
"This is not good," Stephen Baker, NPD's vice president of industry analysis, told Macworld. "They need to address the iMac. A big chunk of this is because iMac sales are dropping two to three times compared to Windows PCs."
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In its report on monthly sales trends for January, NPD blamed Apple's decline on the company's offerings aimed at bargain shoppers looking for low-cost systems.
As US consumers grapple with an ongoing recession, computer buyers are shifting their attention toward low-cost models.
While Apple added a sub-$1,000 MacBook to its offerings last fall and improved the graphics on that model last month while maintaining its $999 price tag, the company has done little on the desktop end.
The iMac line last saw an update in April 2008 while the low-end Mac mini has gone a year-and-a-half without an update.
"What we're seeing is that consumers are not buying based on value, they are buying based on price. Apple is selling value," Baker said.
Interestingly, NPD's report suggests that the upper end of the computer market seems stable. People looking to buy computers priced at $1,500 and higher are less concerned with price than shoppers targeting the lower-end of the market.

The iMac line last saw an update in April 2008.
In the past, Apple has been reluctant to compete for bargain-hunting computer shoppers, choosing instead to tout the quality of its product line. And that seems likely to continue, even in the current economic climate.
Last October, speaking to analysts during Apple's quarterly conference call to announce earnings, CEO Steve Jobs said that Apple's core customers tend to delay purchases during tough times rather than seek out a cheaper brand.
Jobs has also dismissed the chances of Apple building a low-cost netbook to compete with similar offerings from rival computer makers. "We don't know how to make a $500 computer that's not a piece of junk," the Apple CEO said last year.
NPD's figures come as Apple has enjoyed otherwise strong sales for its Mac offerings. In January, the company reported record Mac sales for its fiscal first quarter.
The company said it sold more than 2.5 million Macs, a 9-per cent jump in unit growth from last year's first quarter.
However, much of that growth came from laptops, which accounted for more than 70 per cent of Apple's Mac sales for the quarter.
That suggests to NPD's Baker that, at the very least, Apple's desktop line is overdue for some updates
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Comments received
gregorsamsa said on Thu, 19 Feb 2009
Little wonder! I expect such falls to continue until Apple update all their desktops.
Che said on Thu, 19 Feb 2009
The desktops wont make any difference, sales have been in freefall all last year.
I am sure someone commented only last week that the economic downturn would not affect Apple. mmmm.
Carl Mason said on Thu, 19 Feb 2009
Che said "sales have been in freefall all last year"
Hello, reality check? Apple has just reported its best ever quarter. Only weeks before that call, NPD was reporting a downturn in sales across the board. This is a market research firm, basically one step away from gazing into a crystal ball.
Natasha said on Thu, 19 Feb 2009
We're holding off from buying two macbook pro's simply because the new design is so ugly. I don't feel any compulsion to run out and buy ugly mac's which look like Sony Vaio's.
Adam Young said on Thu, 19 Feb 2009
Apple will always go for revenue, rather than sales volume. Even if PC sales are up 16% (in volume), revenues wil be down thanx to low-cost zero-margin boxes. I'm still putting my money on Apple, even in the economic downturn.
WeegieMac said on Thu, 19 Feb 2009
This loss is purely down to consumers sitting on their cash and waiting for new models to drop.
Brian said on Thu, 19 Feb 2009
Apple is ignoring the netbook phenomenon, netbook sales show that there is a demand for a small light cheap notebook size computer to carry around. Not everyone caan afford 1700$ for a Macbook air. What about a 10" Apple notebook, or Macbook? I am sure many Mac afficionados would go bonkers over one at around 500$.
Dragonfly said on Thu, 19 Feb 2009
Sale numbers will drop, that's only to be expected when fewer people are buying things on a whole. Releasing a new model now may just create a lot of desirable hardware that sits on shelves, so I'm not sure the timing would be right. Also Adam is right, it's not the quantity of zero margin boxes shifted (although that always dents OS X's User Base) it's about revenue per box. Apple could cut their product price in half and have a 20% increase in sales, but they wouldn't be making a profit.
Slinky said on Thu, 19 Feb 2009
Exactly. I don't see why 6 per cent is seen as such a big drop. Especially at the moment. Apple said that it thought people might delay purchases until the economy picked up. Looks like 1 in 20 potential Apple customers are waiting to see what happens to the economy. Big deal!
The company has 24 billion in the bank. It can just sit and wait till the economy picks up again.
As for the netbook thing. It's an age old argument about value rather than cost. Macs costs a lot but deliver good value because they are good computers with a good operating system that runs unique software. You get what you pay for.
Making things cheaper doesn't make them any better. Every netbook I've tried has been s**t.
Dragonfly said on Thu, 19 Feb 2009
@Natasha
"We're holding off from buying two macbook pro's simply because the new design is so ugly. "
Are we looking at the same thing? I'd possibly accept 'ugly' (although totally disagree) as aesthetic appeal is subjective, but not 'SO ugly'. You've obviously not seen one in the flesh so to speak ?
They are many times better designed than the previous MacBookPro, in Strength, Weight, Size and Aesthetics.
Which 'one' part of the design is worse than the previous MacBook Pros ?
@Carl Mason said on Thu, 19 Feb 2009
Read the reports properly - desktop sales were way down 38%.
BJ said on Thu, 19 Feb 2009
They are "SO ugly" even in the flesh. It was holding off until I saw it in the flesh and it was worse.
No upgrades this time.
Haku said on Thu, 19 Feb 2009
When I consider all teh negative factors of the last year for Apple such as the state of the economy, a distinct lack of updates to desktop macs, silly pricing / dropping firewire from the new macbooks, no mac netbooks to compete with that increasingly popular section of the computer market I think a drop of just 6% overall on January last year is utterly outstanding.
M said on Thu, 19 Feb 2009
The notion that it costs hundreds of dollars more to build a Mac than a PC is a triumph of marketing over financial sense. The price is deliberately inflated to maximse profits.
ascylto said on Thu, 19 Feb 2009
I drew £2,000 out of a savings account ready to order the new iMac they introduced at MacWorld. They didn't. I got it completely wrong so I'm still waiting with the dosh. It will happen ... but when?
Slinky said on Thu, 19 Feb 2009
@M All companies products are inflated to maximise profits, or were you labouring under the delusion that companies tried to get by making as little profit as possible because they're all so God-darn nice apart from Apple?
The question is whether it's worth paying. I think a MacBook is worth £719 but an MSI Wind isn't worth £250. I'll still be using the MacBook in five years time. The MSI Wind wouldn't last more than a month before I threw it in a cupboard and never used it again.
Rob said on Thu, 19 Feb 2009
Just update the damn thing - we all know there is a new iMac coming 'real soon now' so why is anyone surprised that the 'old' one isn't selling?
greendave said on Thu, 19 Feb 2009
Have you read the analysts report about an iPhone Nano, or the one that claimed Apple would never sell 10 million iPhones, or the one about a Touch-Screen mac.....or the one about Apple having its best ever sales quarter? (Sorry that last one was true!)
Vikki said on Thu, 19 Feb 2009
A 38% drop in desktops last year won't be filled by the release of the iMac. That is a big hole!
It is not just the iMac though, it's the whole desktop range and pretending Apple won't be affected by the global turn down is a whole lot of denial.
fedupwaiting said on Thu, 19 Feb 2009
I want to buy an imac or mac mini but am absolutely fed up of waiting for next revamp. Am certainly not going to purchase present model and if apple don't get their finger out soon will buy a pc instead
@Natasha said on Fri, 20 Feb 2009
You're holding off purchasing a MacBook Pro because they're ugly? Considering they've only been available since October and January you've got a long wait.
They won't see a form factor change for at least 2-3 years.
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