PC companies are going after the Apple (AAPL) Mac. Hewlett-Packard (HPQ) and Dell (DELL) are building new laptops with more colorful housings, better processors, and nicer screens. The sales of the Mac are growing and some figures put its US sales market share at near 8% in December.
The trouble is that the PC companies probably can’t compete with the Mac. Apple has a certain "cool" factor because of the iPod and iPhone. It also has the Mac Leopard OS which has become popular with consumers and is giving Microsoft (MSFT) Vista a run for its money.
With the economy slowing, the Mac’s biggest enemy is its high price. A laptop with decent features starts at $1,400. That is a dear price to pay for a PC.
The PC manufacturers may have to cut prices in addition to improving features. If consumer spending slows, it may be their best weapon for keeping share. It could bring down their margins for a couple of quarters, but that is better than having the Mac get 15% of the market.
Douglas A. McIntyre
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