Business Week has published an in-depth analysis on Apple's current market position.

The piece highlights Apple's declining market share, saying: "Apple's market share is hovering around 3.5 per cent, down from 13.4 per cent a decade ago, and 4.2 per cent in the year after Jobs returned."

However, Business Week recognises Apple's place as an "innovation leader" in the PC market. "Now Jobs is sparing no expense on the R&D front," it says. Apple's research and development spend climbed to $446 million from $380 million in 2002.

The report also discusses Apple's falling market share in US education - down from 21.5 per cent in 1998, to 12.7 per cent in 2002. Power Mac sales have also declined, the report says.

"Jobs has compensated by selling more computers to consumers. According to IDC, Apple's share of the US consumer market jumped from 2.2 per cent in 2001 to 3.9 per cent in the first three quarters of 2002," says Business Week.

It concludes: "Jobs needs to keep dreaming big when it comes to innovation. That's how Apple can turn 3.5 per cent of the market into a winning formula."