I was very surprised to read in an article in the Sunday New York Times Business Section, that worldwide market-share of Apple’s Mac line was 3% as of June 2007. That can’t be right! I see more and more Powerbooks than ever at meetings and as product placements in TV shows and movies. Also, with the problems that Vista is having, more of my associates are talking about moving to Mac. And what about the popularity of the iPod, you mean that didn’t help generate Mac sales?
And then there’s all the talk about Consumer Generated Media and how Mac’s come standard with great tools to help with audio and video production. Surely, that led to an increase in market-share? Apparently not.
So, once again technology gets trumped by poor business decisions. It seems that distribution, or the lack of it, have seriously impacted Apple’s ability to sell machines. One example cited is Apple’s retail operation. The market leader, Hewlett-Packard, has its computers in 23,000 in the US alone, while Apple wouldn’t disclose the number of retail locations they are in except to say the are in the 185 Apple Stores. The article points out that Apple has been in a pilot program with Best Buy since 2006 but still have no agreement to have them available in all 872 stores.
It seems that great technology without adequate distribution still delivers miserable results. Startup companies still need to explain how they will make their first 10 sales, 100 sales, and 1000 sales before anyone will believe the millions in revenue in the financial section of their presentations. Even the big guys can’t drive results without solid distribution channels.