4 ms·

Apple in the PC market is a single digit percentage point(7.2) participant. Premium niche is a functional business model, but broad market speaking, commodific

Apple in the PC market is a single digit percentage point(7.2) participant. Premium niche is a functional business model, but broad market speaking, commodification has taken place, in that 25% of the PC market is Other in most reports. That number is important because it implies that 25% of the entire market is "small" actors that have been able to leverage commodification. If you also consider Dell as a commodity vendor then that group jumps to 40%.

IBM 10y ago
The parent implies that it will eventually drive the margins down. If you're saying that commodification has already taken place then it's even more impressive that Apple's line of computers can still command a premium and indicates that they have some kind of durable competitive advantage.
- frankydp 10y ago
  I agree. Premium niche is a very effective business model, and Apple does apply that strategy very well. I was only suggesting that supply chain optimization is more a function of profitability for Apple and less of a market advantage due to total market commodification.
- zekevermillion 10y ago
  It's almost like Apple has uncovered a new kind of product microeconomics -- luxury commodity, a commodity product where luxury pricing increases demand. It's a cheap way for consumers to signal upscale fashion. (This is me appreciating the enemy's skill from afar. I do not personally like Apple products. Just as I prefer wearing paint-stained sweatpants and 10-year-old extra-large t-shirts, as well as running linux on 8-year-old workstation. My favorite "smart"phone is a blackberry classic.)
  - boulos 10y ago
    I'm not sure if you were being sarcastic, but that's called a Veblen Good (https://en.m.wikipedia.org/wiki/Veblen_good https://en.m.wikipedia.org/wiki/Veblen_good) and many luxury items follow the same pattern.
    - nsp 10y ago
      Nitpick, luxury goods and veblen goods are distinct concepts. Veblen goods are generally considered theoretical (with the possible exception of things like stocks). For Apple laptops to be Veblen goods, you would have to believe that they would sell fewer laptops if they were cheaper, not just makes less money. You could make the case that it's all brand fetishism and Apple would sell fewer MacBooks than they do now if they cost $500 rather than $1000, but i find that fairly implausible.

IBM 10y ago

The parent implies that it will eventually drive the margins down. If you're saying that commodification has already taken place then it's even more impressive that Apple's line of computers can still command a premium and indicates that they have some kind of durable competitive advantage.

frankydp 10y ago
I agree. Premium niche is a very effective business model, and Apple does apply that strategy very well. I was only suggesting that supply chain optimization is more a function of profitability for Apple and less of a market advantage due to total market commodification.
zekevermillion 10y ago
It's almost like Apple has uncovered a new kind of product microeconomics -- luxury commodity, a commodity product where luxury pricing increases demand. It's a cheap way for consumers to signal upscale fashion. (This is me appreciating the enemy's skill from afar. I do not personally like Apple products. Just as I prefer wearing paint-stained sweatpants and 10-year-old extra-large t-shirts, as well as running linux on 8-year-old workstation. My favorite "smart"phone is a blackberry classic.)
- boulos 10y ago
  I'm not sure if you were being sarcastic, but that's called a Veblen Good (https://en.m.wikipedia.org/wiki/Veblen_good https://en.m.wikipedia.org/wiki/Veblen_good) and many luxury items follow the same pattern.
  - nsp 10y ago
    Nitpick, luxury goods and veblen goods are distinct concepts. Veblen goods are generally considered theoretical (with the possible exception of things like stocks). For Apple laptops to be Veblen goods, you would have to believe that they would sell fewer laptops if they were cheaper, not just makes less money. You could make the case that it's all brand fetishism and Apple would sell fewer MacBooks than they do now if they cost $500 rather than $1000, but i find that fairly implausible.