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While most other PC makers fight viciously over pricing, perhaps because it’s the only factor on which they can differentiate, few of them bother trying to make better computers — just build bland, plastic wrappers around Intel’s latest chipsets. (Sony and Lenovo, this time I am not talking about you.) None can offer better software because they all ship the same version of Windows, that is they are stuck with whatever version of Vista is shipping from Microsfot. Additionally, they all seem, for whatever reason so far, incapable of producing Apple-like marketing or advertising. And none of them who’ve tried have been able to do their own retail stores successfully, remember the Gateway 'farm' stores? This leaves price as all they have.

At the latest Apple laptop event, Apple COO Tim Cook showed two pie charts. One showed the Mac’s unit share in the U.S. retail market at 18 percent, up from “a single digit number, just a few years ago”. Cook then drops the bombshell and the key point you need to grasp in understanding Apple’s Macintosh business: “... what’s more impressive than this is if you look at revenue share. Because we focus on fully-featured systems, and we don’t compromise on quality, our revenue share is over 31 percent. That means that one out of every three dollars that’s spent on computers in U.S. retail is spent on the Macintosh. What a difference a few years makes.”

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