January 23, 2006 12:01 PM PST

Apple's iWork emerges as rival to Microsoft Office

Corel bills its WordPerfect Office software as "the world's leading alternative to Microsoft Office." But when it comes to U.S. retail sales, Corel lost the No. 2 spot in 2005 to a somewhat unlikely competitor: Apple Computer's iWork.

According to market researcher NPD, Apple grabbed a 2.7 percent unit share, while Corel had a 1.6 percent share. Microsoft maintained its dominance with nearly 95 percent of unit sales.

Apple's share is particularly impressive considering that iWork runs only on Macs, which account for a small fraction of computers, said NPD analyst Chris Swenson. "Apple's success for iWork has been pretty surprising," he said.

Looking at the Mac platform alone, iWork accounted for 17.4 percent, compared to about 82 percent for Microsoft. "Apple's iWork didn't overtake Microsoft Office, but I think taking almost a fifth of the Mac Office Suite market away from an entrenched competitor such as Microsoft is quite an accomplishment," Swenson said.

Corel, meanwhile did see its unit sales of WordPerfect Office grow 6.1 percent year over year, but its dollar revenue from those products dropped by 0.7 percent, Swenson said. Swenson said his sense is that the products aren't getting much advertising inside retail stores.

"I think Corel has their work cut out for them," Swenson said.

Corel recently updated its WordPerfect Office program as well, while Microsoft is due to release a significant update, Office 12, later this year.

The iWork program is a relative newcomer to the Office scene, having debuted in January, 2005. Earlier this month, Apple updated iWork, enhancing the Pages word processor and Keynote layout program with improved table capabilities, but not adding a spreadsheet program as some had expected.

There had been reports, apparently incorrect, on some Apple enthusiast sites that sales of the initial iWork software had lagged.

"One rumor that can be put to rest is that iWork wasn't selling well," Swenson said.

For its part, Corel said that it has 10 to 15 times more sales than iWork when you add in other channels--such as commercial sales and sales through distributors--and that PC makers, including Dell, sometimes bundle WordPerfect Office on their new PCs.

"When you add all of them up we stand strong to our claim of being the leading alternative," said Richard Carriere, general manager of Corel's Office Productivity unit. That said, having a major presence at retailers is important, he added.

"It's a small fraction of the market, Carriere said, adding: "It's very important for showcasing our product and we are present in all the major outlets."

See more CNET content tagged:
Apple iWork, Corel Corp., Corel WordPerfect, Apple Computer, Microsoft Office

Add a Comment (Log in or register) 74 comments (Showing first 20 comments)
Thanks Apple...
by nmcphers January 23, 2006 12:48 PM PST
...for filling the gap and sometimes outperforming competitors when they neglect and or abandon the Mac market. The lame excuse they often use is that the Mac marketshare is too small to support developmental cost. But if you have good products, Mac people will buy. Office for the Mac is profitable for Microsoft. What excuse did Corel have to abandon the Mac?
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Open Office
by dragonbite January 23, 2006 12:52 PM PST
Since the report goes over sales it naturally won't include Open Office (or nearly to the significance to show up as a blip on the radar), but I wonder where it lies in the number of people using it in comparison.
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Umm how?
by Jonathan January 23, 2006 12:58 PM PST
Seriously. I've played around with Pages. Its complete and total ****. Keynote is another matter though.

Seriously I'd rather use open office then Pages.
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Peaceful co-existence
by Lucky Lou January 23, 2006 1:48 PM PST
Not all the sales of iWork are coming at the expense of MS
Office. iWork is substantially less ($79 vs $359) and has a more
personal/small business vs corporate target market. So some of
its sales are to people who wouldn't have bought Office anyway.
I would bet sales of Office have gone up, not down, even though
MS's share of the "Office" software market may have slightly
declined.
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I Don't Understand the Math
by regulator1956 January 23, 2006 3:15 PM PST
"Looking at the Mac platform alone, iWork accounted for 17.4 percent, compared to about 82 percent for Microsoft."

If the Mac has a 5% marketshare of the PC world and 17.4% of Macs have iWork, then iWork has a 1% share.

For the math to get to 2.7%, Macs would need to have made up 15.6% of all PCs that purchased an office-style productivity package. I guess not many Windows users are buying these packages.
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Well duh !
by dmchose January 23, 2006 4:09 PM PST
Checking the foloowing sys. requirments:
Windows® XP, Windows® 2000 (with SP4), Windows® 98 SE, or Windows® Server 2003
By what other means does Corel have to support mac users ? I would use it if available. iwork is starting to become the app of choice with mac users due to tight integration with all other iapps. Keynote simply rocks.Sorry, Keynote is a mac thing just as Wordperfect is to window users.
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iWork Can't be compaired to Office.
by studiodave January 23, 2006 5:36 PM PST
How can you try to compare iWork to Office they are not the same
thing. You might as well compare a baseball to a banana.
Where is the spreadsheet, word processor, e-mail in iWork? Pages
is not a replacement for Word so that leaves Keynote for
presentations as the only part that could be compared. People that
buy iWork do not buy it to replace Office only to add to the tool set
they have in their computer.
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NPD measures sales in stores ONLY
by Ars Venture January 23, 2006 8:46 PM PST
These figures come from people buying usually individual copies from their local store - Best Buy, Circuit City, or even the Apple store.

Mail order, Online sales, Sales direct from the manufacturer, or Bundled sales are not measured. According to NPD Dell sells no computers.

So these figures are essentially meaningless - unless you had to wait in line while someone bought a thousand copies of MS Office.
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Two Different Product Lines, Two Different Markets
by anassassinoftime January 23, 2006 10:08 PM PST
In terms of Office Suites, I see only two legitimate competing options: Microsoft's MS Office and the open-source OpenOffice suite (including offspring such as NeoOffice). I'm not familiar with Corel's software, and I don't suspect too many people buy that. To be fair, Apple does have a competing software suite: AppleWorks 6. But to be honest, it is not up to par with MS Office, though it does have its uses and has certain functions not available anywhere else.

I do, however, own and use iWork (just upgraded to iWork '06). I also own and use Microsoft Office for Mac 2004 Professional. They both have their uses, and they almost never overlap. When I want to write an article, or an essay, I use MS Word (although I admit that OpenOffice is getting closer and closer to making a convert out of me). When I want to create a presentation, or an advertisement, implementing pictures from iPhoto, movies from iMovie, and soundbites from GarageBand, i use iWork. Apple's iWork suite is for exactly that: easy syncing and compatibility with other popular Apple software. Microsoft Office is, as the name implies, an office suite.

I'd much rather see the comparisons of MS Office to OpenOffice. Obviously, MS Office is still dominant, but I do believe the open-source movement has had some effect on the market shares. In the meantime, you can't compare Honda Accord sales figures with Dodge Viper sales figures, and you can't compare iWork to MS Office.
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I Use Both
by jypeterson January 24, 2006 7:46 AM PST
I use both on my Mac. When I want to make my presentations pop or have an easier time at creting newsletters and better looking word processing documents, I use iWork instead of Office. I really only use Office for Excel and Access, but if Apple comes out with a spreadsheet/database program that has advanced features like Excel, I will dump Microsoft on my Mac completely.

By the way, iWork is compatable with Office.
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Business is about profit
by justinowen42 January 24, 2006 11:11 AM PST
No company will ever switch from office because every desktop in the place runs XP-2000. If you have a Dell that costs 500$ and an Apple that costs 2000$
which one will a good business man/woman choose> Open office & office.
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iWork really counts as office program?
by Ilgaz January 24, 2006 12:10 PM PST
I had iWork trial here. It can be good for home users (not home
office even!) but it is a joke to call it "office".

There is a huge zealotry around, there are people who buys
everything Apple ships (aka mac users) so I would not trust this
story for making decisions.

Simplest example: There is no "revisions" built in iWork.
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thebignoticeboard.com
by thebignoticeboard.com January 25, 2006 9:08 AM PST
i think that its about time. iWork is an excellent piece of software.
Reply to this comment
Definition of rival
by KsprayDad January 25, 2006 3:40 PM PST
# One who attempts to equal or surpass another, or who pursues the same object as another; a competitor.
# One that equals or almost equals another in a particular respect.

Perhaps if Apple had 50% of the PC market it could even start to attempt to equal...

2.7% of the market and you get a headline of "top rival"?

Do we just like to type the word 'apple' at CNET or what gives!
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