All Things Digital

John Locke (played by Terry O’Quinn) and his Apple II in ABC’s “Lost”

“Because they’re the super-small-market share guy, they get all these statements about them.” Microsoft (MSFT) Chairman Bill Gates said that about Apple back in 2005. And while it’s essentially still true, it’s less so than it has been in years past. In separate reports today, research houses Gartner (IT) and IDC (IDC) both note that Apple has climbed to third place in the desktop market in the U.S. Gartner figures Apple’s share of state-side PC shipments for the second quarter of 2008 to be 8.5 percent, up from 6.4 percent in the quarter a year earlier. IDC pegs it at 7.8 percent for the second quarter this year, up from 6.2 percent in last year’s second quarter. And that puts the company in third place in the domestic PC market–ahead of Acer, if you believe Gartner. And in fourth place behind Acer if you believe IDC.

Not that it matters all that much. Because regardless of whose metrics you prefer, Apple (AAPL) still lags far behind the two PC sales leaders. Dell (DELL) is still the No. 1 seller of PCs in the U.S., with 32 percent of the market according to IDC. HP is No. 2, with 25 percent. And in terms of worldwide sales, Apple hasn’t even cracked the Top 5. Yet.

It’s definitely No. 1 in Hollywood though, as critic Roger Ebert noted a few years back. “Macs turn up in the movies all the time–not so much because of product placement, but because so many movie people use them and like them,” Ebert wrote. “A historian of the future, counting all the on-screen computers between 1983 and today, would likely conclude that Macs represented 90 percent of the computer market.”

Get this: A new report from the Standish Group claims that FOSS–free and open source software–is decimating the software market. To wit:

Open Source software is raising havoc throughout the software market. It is the ultimate in disruptive technology, and while to it is only 6% of estimated trillion dollars IT budgeted annually, it represents a real loss of $60 billion in annual revenues to software companies.”

Quite a claim. A contentious one too, since, according to research outfit IDC, Linux software actually contributed $10 billion to the market and is expected to contribute $31 billion by 2011. The 2011 forecast for spending on the entire Linux ecosystem? More than $49 billion.

Oh, and in case you were wondering, a Web search for “Standish Group”+Microsoft+”sponsored by” didn’t return any documents.

Though Apple hasn’t yet unveiled, or perhaps even developed, its strategy for integrating the iPhone with business software systems in a way that won’t give IT executives aneurysms, its plans to bring the device to the enterprise market appear to be going quite well. This in spite of dubious security folk and leery analysts like Gartner’s Ken Dulaney who once said: “We’re telling IT executives to not support it because Apple has no intentions of supporting (iPhone use in) the enterprise. This is basically a cellular iPod with some other capabilities and it’s important that it be recognized as such.”

Thing is, Apple likely does intend to support the iPhone in enterprise, and even if it doesn’t, a lot of people plan to use it there anyway. According to new research from IDC, 70% of the people who own or are planning to buy an iPhone intend to use the device as a business tool. “The results of our poll suggest a preference for both personal and business usage among those that own or plan to purchase an iPhone in the next 12 months,” said Sean Ryan, research analyst for IDC’s Mobile Enterprise Device Solutions. “This coincides with a growing trend in the proliferation and uptake of other converged mobile devices designed to meet both the business and consumer requirements of mobile workers.”

Like it or not, the iPhone is being “user pushed” into the enterprise space. As Mark Blowers, senior research analyst at Butler Group, noted this past summer, “With remote working becoming more popular, there will be increasing pressure on the IT department to integrate a growing number of different mobile devices with the existing infrastructure. The iPhone could well be another BlackBerry that the IT manager will be compelled to adopt.”

Given the recent monomania over Apple’s iPhone, it’s sometimes easy to forget that the company also has a thriving personal-computer business that’s tearing market share from the hands of rival computer-makers.

But while Apple may have taken the “computer” out of its name, it definitely hasn’t taken the computer out of the company. According to market researcher IDC, sales of Apple machines rose to 1.76 million units during its third quarter of the year, up 33% from the same period a year ago.

And they’re sure to rise in the fourth quarter as well, thanks to a batch of new products the company debuted today. At an event at its corporate headquarters, Apple uncrated a sleek new aluminum-and-glass iMac desktop (with all-new Bluetooth 2.0 keyboard) and a faster Mac mini as well as significant upgrades to its iLife (revamped iMovie) and iWork (new spreadsheet program) software suites and .Mac service (10 GB of storage plus new photo-sharing features).

Interestingly, Apple’s selling its new iMacs at prices lower than those of their predecessors, and while those prices are still higher than those of low-end Windows PCs, the company says they compare favorably to more high-quality PCs. “Our goal is to make the best personal computers in the world and make products we are proud to sell and recommend to our family and friends,” Apple CEO Steve Jobs said at Apple’s event today. “We want to do that at the lowest prices we can. But there’s some stuff in our industry that we wouldn’t be proud to ship. And we just can’t do it. We can’t ship junk. There are thresholds we can’t cross because of who we are. And we think that there’s a very significant slice of the [market] that wants that, too. You’ll find that our products are not premium priced. You price out our competitors’ products, and add features that actually make them useful, and they’re the same or actually more expensive. We don’t offer stripped-down, lousy products.”