"Install Base" vs. "Market Share"
June 05, 2005 @ 02:04 AMI don’t typically put much stock into the whole argument that Apples don’t break as often as PCs and such. Both are computers, both will have their problems. While it is statistically true that Apples last longer and break less than PCs, if that’s the only argument one has, it’s not a great one. A calculator lasts longer than a computer, after all. I mostly base my Apple-PC arguments on the superiority of the platform itself (primarily the software).
I just read an interesting article that tried to differentiate between “market share” and “install base,” where market share is the total percentage of each year’s sales, and install base is the total percentage of users at any given moment. Example: The 2000 Ford Taurus has a market share of 0%, because it is no longer sold. However, it has an install base considerably higher (probably still well under 1%) because a certain percentage of current drivers still drive the 2000 Ford Taurus.
So, according to this study, Apple has a market share of approximately 4% (up a point in the last year, which is impressive enough). Not a huge surprise there, even at that they are the 5th largest computer manufacturer in the United States. But what’s even more impressive is the study concluded that Apple’s INSTALL BASE - the total percentage of end users using Macs - is a MUCH larger 16%!... This is by far the most important number to use when discussing Mac usage.
So now, people who do not address Mac users with their software or services are not alienating 3% of the market… they’re alienating 1 out of every 6 potential customers. Good to know.