New Macs Score Higher In Schools

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August 10, 1998 (3:58 PM EDT)

By Mo Krochmal,

Apple's share of new computer purchases by schools is expected to increase this school year.

According to the preliminary data in the 1998 to 1999 technology purchasing forecast from Denver-based Quality Educational Data, more schools are planning to buy Macintosh computers this year than last year. In a survey of 5,000 schools, 38 percent of those responding said they plan to purchase Mac machines -- up from the 32 percent forecast in last year's survey.

"I was surprised by the numbers," said Jeanne Hayes, president and CEO of Quality Educational Data. "I didn't think there would be that dramatic a change."

Education is one of Apple's key markets. The Cupertino, Calif.-based company (company profile) has a majority of the installed base of computers in the education market in the United States.

However, Apple had been losing market share. Four years ago, the computer developer had 60 percent of the installed base in the education market, a number that has slipped to 48 percent now, according to the survey.

Apple attributes some slippage to schools replacing models such as the Apple IIs with new machines this year, said Apple spokesman John Santoro.

Macs hold 39 percent of the installed base, while previous Apple models have fallen to 9 percent of the installed base, down from 17 percent last year, according to survey data for the 1997 to 1998 school year.

"We've had a tough time, but I think things bottomed out late last fall, and now our market share is coming back up in education," said Santoro.

Hayes said she thinks some of Apple's spike is because of schools trying to protect a heavy investment in Mac software and because of the introduction of other Apple machines, such as the new iMac, a $1,299 G3 266-MHz chip-powered machine that ships with a 56-kilobit-per-second modem and a large software package, but no floppy drive.

The iMac is the latest Apple introduction. In March, the company rolled out an all-in-one form factor with a unit that combines a 15-inch monitor with a G3 processor, selling a 233-MHz model for $1,499 and a 266-MHz model for $1,799.

Right now, however, interest in the G3 and the iMac seems to be equally divided among the education sector, said Santoro. He said he sees a division in Apple's education market.

The kindergarten through grade 12 market will embrace the Macintosh G3 all-in-one unit, said Sau Lau, senior analyst in education markets for International Data Corp., a high-tech market researcher based in Framingham, Mass. Mac-minded college students, however, may opt for the iMac, he said.

"I think the iMac is more suitable for higher education since most colleges are networked," Lau said.