1) Middle/Upper income folks who are willing to pay a bit more for a better user experience. paying 500 more for a computer is not a huge deal if you have a decent income.
2) People who like to have fun with technology. No other platform offers as many entry level tools (the whole iLife bunch and more). This includes people who like to shoot a lot of digital photos or video. It's the whole digital hub concept. People are starting to buy into it.
3) Music enthusiasts and fans ages 12-35.
4) Professionals in media and design.
The first two groups do overlap, but it's a huge market. Way bigger than 5% or whatever. Apple's problem is not really pricing. These are the same people who pay $500 to get seats that warm up your behind. Apple's problem is the status quo. People who should consider macs don't, because of a stigma of incompatibility that developed in the 90's.
Apple's market share and success will grow in the next ten years for the simple reason that our generations X and Y who have been exposed heavily to the internet weren't using computers much during the 'compatibility' days But anyway, the 'compatibility' problem dies when the people who believe in it are not young anymore. Market Segmentation
The market segmentation includes:
2.1 Demographical bases (age, family size, life cycle, occupation) Looking into Apple, the Demographical market segment is successful because they are developing products on the age, life cycle, occupation of the people. They are distributing their products into various places and the PCs are categorized on age, family size, for example they would have more games and entertainment in the PCs for the kids and a professional PC with all the latest software’s. 2.2 Geographical bases (states, regions, countries)
Looking into the geographical bases of Apple they have...