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

The Best Black Friday iPad Deals
The Best Black Friday iPad Deals
The Apple iPad Black Friday 2014 Deals started to sell.
 
 
Amazon Black Friday 2014 Sale has Started
Amazon Black Friday 2014 Sale has Started
The Amazon Black Friday 2014 sale is officially here. Earlier than ever Amazon offers Black Friday 2014 deals.
 
 
iPhone 6 Plus Delivery Time Reduced
iPhone 6 Plus Delivery Time Reduced
The shipping estimation of the 16GB iPhone 6 Plus has been down to 7-10 days
 
 
Best Buy Reveals Pre-Black Friday Offers for Apple Devices
Best Buy Reveals Pre-Black Friday Offers for Apple Devices
The iPad Air is being sold at a discount of $80-$100
 
 
 

Latest from the Network

Sharif urges Obama to take up Kashmir issue with India
Islamabad, Nov 22 (IANS) As US President Barack Obama confirmed his India visit for the Republic Day next year, Pakistan Prime Minister Nawaz Sharif urged him to take up the Kashmir issue with India. Obama spoke to...
Read more on Politics Balla
 
Hiding tattoos irks Chris Hemsworth
Los Angeles, Nov 22 (IANS) Actor Chris Hemsworth says he hates having his tattoos covered while shooting for films. In an interview with PEOPLE magazine, the actor also mentioned that it takes hours to cover the...
Read more on Celebrity Balla
 
Bynes has real medical issue: Ribeiro
Los Angeles, Nov 22 (IANS) Actor Alfonso Ribeiro says actress Amanda Bynes, who grabbed headlines recently for her erratic behaviour, acted strangely on the set of the film "Love Wrecked" in 2005. In an interview with...
Read more on Celebrity Balla
 
Walmart 1-Hour Deals also Available Online
The Walmart Black Friday 2014 Ad revealed 9 1-Hour Guarantee Doorbuster deals available in the Walmart Black Friday 2014 Sale. The Walmart Black Friday 2014 sale will start online Thanksgiving morning and lead right...
Read more on Black Friday Countdown
 
Pune FC aim for semi-spot in King's Cup
Thimpu, Nov 22 (IANS) Pune FC will be up against fellow Indian side Assam State Electricity Board (ASEB) in a crucial third round group stage encounter of the King's Cup at the Changlimithang Stadium here Sunday. The...
Read more on Sport Balla
 
We're doing okay: Zak after Robin Williams' death
Los Angeles, Nov 22 (IANS) Late actor-comedian Robin Williams' son Zak says that the family is still coming to terms with life after the actor's death. Zak, 31, opened up about how his family is coping since his...
Read more on Celebrity Balla
 
Indian golfers Shiv, Chiragh tied 13th, 14th at Manila
Manila, Nov 22 (IANS) Indian golfers Shiv Kapur and Chiragh Kumar fired five-under 67 each to finish tied 13th and joint 14th, respectively, after the third round of the $1 million Manila Masters at the par-72 Manila...
Read more on Sport Balla
 
Saarc panel decides to close regional centres
Kathmandu, Nov 22 (IANS) The Saarc Programming Committee, meeting here Saturday for its 49th session ahead of the 18th Saarc Summit, has decided to close down three regional centres and merge four others, bringing down...
Read more on Politics Balla
 
Nepal-India border to be sealed during Modi visit
Kathmandu, Nov 22 (IANS) Some parts of the Nepal-India border will be sealed during Indian Prime Minister Narendra Modi's visit to Lumbini, the birthplace of Lord Buddha, an official said here Saturday. Three...
Read more on Politics Balla
 
Australia rest pace trio ahead of India series
Melbourne, Nov 22 (IANS) Cricket Australia (CA) Saturday opted to rest pace trio Mitchell Johnson, Peter Siddle and Josh Hazlewood for the upcoming Sheffield Shield round matches, keeping in mind the upcoming Test...
Read more on Sport Balla