Comments on: ‘PC Does What?’ seems doomed to fail https://dfarq.homeip.net/pc-does-what-seems-doomed-to-fail/?utm_source=rss&utm_medium=rss&utm_campaign=pc-does-what-seems-doomed-to-fail David L. Farquhar on technology old and new, computer security, and more Tue, 20 Oct 2015 00:39:24 +0000 hourly 1 By: Dave Farquhar https://dfarq.homeip.net/pc-does-what-seems-doomed-to-fail/#comment-42985 Tue, 20 Oct 2015 00:39:24 +0000 https://dfarq.homeip.net/?p=7896#comment-42985 In reply to Glaurung.

Alright, point taken–I looked, and content is 12% of Apple’s 2014 revenue. But their Macs account for 15% of sales, so I wasn’t wrong about the number of computers they sell. Over 50% of their revenue comes from phones. So Apple isn’t a content company, they’re a phone company. So we were both wrong.

But the rest of what you’re saying is that Apple is selling a lifestyle.

]]>
By: Glaurung https://dfarq.homeip.net/pc-does-what-seems-doomed-to-fail/#comment-42984 Mon, 19 Oct 2015 15:04:23 +0000 https://dfarq.homeip.net/?p=7896#comment-42984 Actually Apple’s content sales are a drop in the bucket compared to their hardware sales.

Apple isn’t comparable because they’re playing chess while the rest of the pc industry has been playing checkers. Dell, HP, Lenovo, and the rest all tried to compete on price. Result: computers now cost 1/3 of what they used to 15 years ago, and all the PC makers are struggling to clear more than 5 or 10 bucks per PC sold.

Apple decided back in the late 90’s that it was going to compete on customer satisfaction and customer experience. They’re the only PC maker that offers a premium experience. Premium as in a product that costs more but makes you feel special. Premium as in a case that looks and feels exceptional, premium as in customer service that people remember positively, and rave to their friends about. And premium as in an OS that people perceive as being nicer and more user friendly than Windows, and tell their friends about that, too.

For the past 5-10 years, Apple has been reaping the benefits of that choice they made in the late 90s’ — when the rest of the PC industry loses sales, their sales go up. Other PC makers struggle to clear a profit, Apple is one of the most profitable companies in the entire world.

]]>