Is the Apple Mac Dying?
Sales of Apple’s original products are not growing. Macs make up a tiny percentage of global PC sales. The post Is the Apple Mac Dying? appeared first on 24/7 Wall St..
One of the notable things about Apple Inc.’s (NASDAQ: AAPL) most recent quarterly report is that sales of its original products are not growing. They make up a tiny percentage of global personal computer sales, which is not changing. The Mac is not a relevant product in its category. Apple has left it behind. When Apple announces earnings, investors only care about the iPhone.
24/7 Wall St. Key Points:
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Sales of Apple Inc.’s (NASDAQ: AAPL) original products are not growing.
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Its Macs make up only a tiny percentage of global PC sales.
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Mac sales in the most recent quarter were $7.9 billion, up from $7.5 billion in the year before. The revenue was only 8% of Apple’s $95.4 billion total.
A Sliver of the PC Market
Mac sales are only 9% of global PC sales. According to Apple Insider, the company shipped only 5.5 million units in the first quarter. The Mac runs the Apple iOS operating system, while most of the world’s PCs run Microsoft Corp.’s (NASDAQ: MSFT) operating system. Windows was launched in 1985 and helped make Microsoft the most successful tech company in the world for years.
The Apple Macintosh was released in 1984. It was in a race with Windows to be the best-selling PC in the United States, a race Apple lost. In the most recent quarter, Windows revenue, which Microsoft calls the “More Personal Unit,” was $13.4 billion.
The Mac results are small despite Apple’s effort to sell it. Just two months ago, Apple launched the MacBook Air. Its base price is as low as $999. Apple only charges $899 per unit for “education,” which includes students. Apple says the new Mac has an 18-hour battery life.
The product comes in many configurations: the MacBook Air, the MacBook Pro, the iMac, the Mac mini, the Mac Studio, and the Mac Pro, which can cost over $10,000.
Why do people buy Macs at all? iOS also works with the iPhone, iPad, and Apple Watch. It can handle “heavy workloads,” is “user-friendly,” and has strong battery performance.
Mac sales should be better with all these advantages, all the new product launches, the Apple brand, and the appeal of iOS. However, the Mac has never been more than a sliver of the PC market. And Apple, with all its leverage, has not been able to improve that. For Apple, it is a niche product.
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