Bring Back Apple's Mac Vs. PC Ads Since Windows XP Isn't Supported

Apr 14 2014, 10:18am CDT | by

Bring Back Apple's Mac Vs. PC Ads Since Windows XP Isn't Supported
Photo Credit: Forbes Apple

Microsoft officially ended support for Windows XP last Tuesday, April 8, over 12 years since it was first sold in October 2001. Even though this has been well known, by at least businesses, almost 30% of the worldwide installed PC operating systems are Windows XP. This could provide an opportunity for Apple to increase its Mac sales as some users look to buy new systems vs. upgrading the software. (Note that my family and I own Apple shares).

Windows XP should become more vulnerable to viruses and other hacks

Last week Microsoft officially stopped supporting Windows XP. While there probably won’t be a rush to migrate or change systems since this should have already happened (but hasn’t so it highlights the slow pace of change) there could be an opportunity for Apple to increase its share of the PC market.

Source: Net Market Share via Ars Technica

Gartner and IDC had Apple’s U.S. share of the 2013 PC market at 12.6% and 10.3% , respectively, and both have the company’s worldwide share at 5.4%. Gartner and IDC have U.S. total PC shipments at 60.7 and 63.5 million, respectively, and both have worldwide PC shipments at 316 million for the year (17.1 million Macs). HP and Dell each have about 25% of the U.S. PC market (and therefore the most vulnerable to Macs gaining share) while on a worldwide basis Lenovo and HP are the two leading vendors with about 17% share for each of them.

Every 1% increase of worldwide market share generates about $0.88 in EPS

It is an interesting analysis to determine how much revenue and earnings Apple could generate by increasing its U.S. and worldwide market shares as users evaluate what systems to buy. Gartner and IDC estimate that there were just over 60 million U.S. PCs shipped in 2013. To calculate the impact of a 1% share increase for Apple assume:

  • Each 1% share increase is equal to 600,000 Macs
  • Each Mac sells for $1,315 or what one sold for in fiscal 2013
  • This would generate Mac revenue of $789 million (3.7% more than fiscal 2013’s)
  • Assume 25% gross margins for Macs
  • After applying a 26.2% tax rate and 874 million shares every 1% U.S. market share generates
  • $0.17 in EPS vs. $39.76 in fiscal 2013 

Both Gartner and IDC estimate that there were 316 million PCs shipped worldwide in 2013. When you assume the same selling price and other metrics as above Apple could generate over $4 billion in additional revenue (19% more Mac revenue than fiscal 2013’s) and $0.88 in EPS.

The above examples are for “only” 1%. I put “only” in quotes since PCs are a very competitive market and in the segments that Apple plays in (premium priced systems, especially laptops) limits its ability to increase total share so gaining even a 1% increase won’t be easy to pull off even when users may be looking for a new system.

Bring back Mac vs. PC ads

I believe this would be the perfect time to bring back some Mac vs. PC commercials to highlight Macs security especially since the Heartbleed security flaw was announced last week. Apple told Re/code iOS and OS X never incorporated the vulnerable software so its systems were not affected.

I have added a link to some of the company’s Mac vs. PC ads which are quite well done.

Follow me on Twitter @sandhillinsight. You can find my other Forbes posts here.

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Indian-origin researcher's model to empower women in IT
New York, Aug 28 (IANS) Under-representation of skills had forced women working in the IT sector to flee the profession but a 12-year-old model by an Indian-origin researcher can help stem the gender bias, a significant study says.
 
 
Gene decides alcohol addiction risk
New York, Aug 28 (IANS) What has alcohol addiction got to do with genes? A lot, researchers say.
 
 
'Good' cholesterol can help treat pulmonary hypertension
New York, Aug 28 (IANS) For those suffering from pulmonary hypertension, a serious lung disease that narrows the small blood vessels in the lungs, here's some good news. A new study demonstrates that protein in "good" cholesterol may treat the affliction.
 
 
The wave-like nature of skill learning
Washington, Aug 28 (IANS) Know why learning a new skill is easy for some while difficult for others? It depends on a fundamental constraint hidden in the brain.
 
 
 

Latest from the Network

Indian-origin researcher's model to empower women in IT
New York, Aug 28 (IANS) Under-representation of skills had forced women working in the IT sector to flee the profession but a 12-year-old model by an Indian-origin researcher can help stem the gender bias, a...
Read more on Apple Balla
 
Richardson pleased with ICC World Cup 2015 preparations
Dubai, Aug 28 (IANS) International Cricket Council (ICC) Chief Executive David Richardson Thursday expressed his satisfaction with preparations for World Cup 2015 after receiving detailed updates in Wellington and...
Read more on Sport Balla
 
Ed Sheeran thinks Miley Cyrus is 'fantastic'
Ed Sheeran insists he thinks Miley Cyrus is ''fantastic'' even though she called him an ''a**hole.'' The 'Sing' hitmaker says he has no issues with the 21-year-old star and thinks she's ''got a great voice'' despite the...
Read more on Celebrity Balla
 
Jennifer Aniston: Courteney Cox should enjoy engagement
Jennifer Aniston thinks Courteney Cox should enjoy being engaged. The 45-year-old actress, whose fiancé Justin Theroux proposed on his birthday two years ago, is thrilled her former 'Friends' co-star is planning to...
Read more on Celebrity Balla
 
Lily Allen's twerking child
Lily Allen's youngest child can already twerk. The 'Smile' hitmaker, who has two kids, Ethel, two, and 19-month-old Marnie with husband Sam Cooper, revealed her second daughter has already mastered the technique of the...
Read more on Celebrity Balla
 
Katherine Heigl drops $6million lawsuit
Katherine Heigl has dropped her $6million lawsuit against Duane Reade. The 'Knocked Up' star was suing the drug store company after it posted paparazzi shots of her carrying the shop's bags on it's Twitter and Facebook...
Read more on Celebrity Balla
 
Miley Cyrus invites Jesse Held to live with her
Miley Cyrus is living with her homeless friend Jesse Held. The 'Wrecking Ball' singer shocked onlookers at the MTV Video Music Awards in Los Angeles on Sunday (24.08.14) by turning up with a homeless friend, and Miley...
Read more on Celebrity Balla
 
Beyonce's father: Divorce rumours were to 'ignite' ticket sales
Beyonce Knowles' father has claimed his daughter and Jay Z orchestrated divorce rumors to ''ignite'' ticket sales. The couple have been hit by speculation their marriage is on the rocks in recent weeks but Matthew...
Read more on Celebrity Balla
 
Idris Elba dated 19-year-old woman at 14
Idris Elba had a 19-year-old girlfriend when he was 14. The 41-year-old actor - who has been dating partner Naiyana Garth since last year - has claimed he seduced the ''beautiful'' woman when he was a youngster by...
Read more on Celebrity Balla