Analyst: 'Apple risks market share slide' - PC Retail

Analyst: 'Apple risks market share slide'

Urges vendor to launch netbook after warning market growth may decline for first time in years
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A prominent Apple analyst has warned that the firm is facing its market share slipping for the first time in several years.

Broadpoint AmTech analyst Brian Marshall issued the warning in an investor note, stressing the need for Apple to enter the netbook market.

"Despite management's commentary that it's not interested in the netbook market, the key to Apple's model is continued penetration," commented Marshall.

"Currently, Apple has about 3.5 per cent of the computer market. But I see that tapering off this year, for two reasons. One, it will be difficult to stay at that share in this downturn with a high-priced product. And two, the company has indicated it has no interest in playing in the fastest-growing segment."

He was keen to dispel a lot of the fears Apple's investors have expressed including it being cannibalistic. "Investors, and Apple, too, are concerned about the possibility of a netbook being cannibalistic, but I think that [a netbook] at $599 is not a cannibalistic product if it's positioned properly," he said.

Source: Macworld

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