The Macintosh Revenue Paradox

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    Posted: 01 February 2011 10:38 PM #16

    FalKirk - 02 February 2011 02:28 AM
    DawnTreader - 02 February 2011 01:57 AM

    At 25% revenue growth the Mac’s percentage contribution to total revenue will continue to fall through FY2011. Still, the Mac and Mac-related revenue activity may reach $25 billion this fiscal year.

    Is there any way to break down sales, revenue and profit figures for the notebooks and the desktops? Or are they always lumped together?

    Apple provides a sales and revenue breakouts for notebooks and desktop but not individual models.  Profit can be estimated based on BOM calculation and charging SG&A and R&D as a percentage of overall sales.

         
  • Posted: 01 February 2011 10:51 PM #17

    pats - 02 February 2011 02:38 AM
    FalKirk - 02 February 2011 02:28 AM

    Is there any way to break down sales, revenue and profit figures for the notebooks and the desktops? Or are they always lumped together?

    Apple provides a sales and revenue breakouts for notebooks and desktop but not individual models.  Profit can be estimated based on BOM calculation and charging SG&A and R&D as a percentage of overall sales.

    Thanks.

         
  • Posted: 13 February 2011 03:08 PM #18

    DawnTreader - 29 January 2011 08:46 PM

    My latest missive at Eventide.

    Snippet: In the recent December quarter, Macintosh CPU sales produced revenue of over $5.4 billion yet represented just over 20% of Apple’s reported revenue. To put the Mac’s unit’s revenue performance in a broader perspective, in FY2011 Macintosh CPU sales will produce revenue at or above $21 billion and revenue from Mac sales will exceed Apple’s revenue from all sources as recently as FY2006. This paradox of record revenue and declining percentage of revenue contribution to Apple’s overall results is due of course to the popularity of Apple’s iOS-based products such as the Apple iPhone and Apple iPad.

    It really is only in comparison to the current success of the Apple iPhone and Apple iPad that the continuing success of the Mac could be overshadowed.

    Don’t forget the impact of the new Mac app store as another draw for Mac sales. Imagine the opportunities developers see in providing product for the Mac and iPhone/iPad with reasonable distribution fees and no packaging expense and no inventory risks. I just noticed the Mac app store makes use of my iTunes balances. That means billions of dollars in sales potential through pre-paid cards and existing credit card accounts.

         
  • Posted: 13 February 2011 04:40 PM #19

    Sparky - 13 February 2011 07:08 PM
    DawnTreader - 29 January 2011 08:46 PM

    My latest missive at Eventide.

    Snippet: In the recent December quarter, Macintosh CPU sales produced revenue of over $5.4 billion yet represented just over 20% of Apple’s reported revenue. To put the Mac’s unit’s revenue performance in a broader perspective, in FY2011 Macintosh CPU sales will produce revenue at or above $21 billion and revenue from Mac sales will exceed Apple’s revenue from all sources as recently as FY2006. This paradox of record revenue and declining percentage of revenue contribution to Apple’s overall results is due of course to the popularity of Apple’s iOS-based products such as the Apple iPhone and Apple iPad.

    It really is only in comparison to the current success of the Apple iPhone and Apple iPad that the continuing success of the Mac could be overshadowed.

    Don’t forget the impact of the new Mac app store as another draw for Mac sales. Imagine the opportunities developers see in providing product for the Mac and iPhone/iPad with reasonable distribution fees and no packaging expense and no inventory risks. I just noticed the Mac app store makes use of my iTunes balances. That means billions of dollars in sales potential through pre-paid cards and existing credit card accounts.

    The Mac app store is convenient and will be a benefit to developers. As I often say, content sells devices and content availability will sell Macs.

         
  • Posted: 24 February 2011 06:45 PM #20

    What do you think the new MacBook Pros will do for Mac revenue this quarter?

         
  • Posted: 24 February 2011 11:22 PM #21

    Sparky - 24 February 2011 10:45 PM

    What do you think the new MacBook Pros will do for Mac revenue this quarter?

    It will definitely firm up unit sales for the quarter. The 15” and 17” models are just sensational. The refresh should also buoy ASPs in the March quarter.

         
  • Posted: 24 February 2011 11:26 PM #22

    Sparky - 24 February 2011 10:45 PM

    What do you think the new MacBook Pros will do for Mac revenue this quarter?

    Let’s hope the tepid interest here at AFB is a contrarian indicator!  :-D

    I’m with DT—these new models are great.  I was hoping for the new MBP to be lighter, sans the optical drive.  But Apple wasn’t listening to me.  They are right though—it is too early to pull the SuperDrive.  Next year (or October-November).

         
  • Posted: 25 February 2011 12:50 AM #23

    Mercel - 25 February 2011 03:26 AM
    Sparky - 24 February 2011 10:45 PM

    What do you think the new MacBook Pros will do for Mac revenue this quarter?

    Let’s hope the tepid interest here at AFB is a contrarian indicator!  :-D

    I’m with DT—these new models are great.  I was hoping for the new MBP to be lighter, sans the optical drive.  But Apple wasn’t listening to me.  They are right though—it is too early to pull the SuperDrive.  Next year (or October-November).

    Agreed. It’s too early to pull the drive just yet. From a practical standpoint, it will take time for the Mac app store to mature and pro-level users need the drive for a variety of tasks. Further, I don’t think consumers are quite ready to give up the drive and in schools and on college campuses curriculum content and resources are still delivered on discs, but that will change in the coming years.

         
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    Posted: 25 February 2011 01:07 AM #24

    The 13” MacBook Pro is the leading indicator for whether the optical drive stays or goes in the MBP line.

    The new MBPs are killer machines for pros, but I expect the less-than-prosumer market for MBPs to trend downwards towards the 13” line or the Airs.  I see the value add in the MBP lineup, but let’s face it, $1799/$2199 in the 15” range isn’t exactly cheap.

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  • Posted: 25 February 2011 01:19 AM #25

    Mav - 25 February 2011 05:07 AM

    The 13” MacBook Pro is the leading indicator for whether the optical drive stays or goes in the MBP line.

    The new MBPs are killer machines for pros, but I expect the less-than-prosumer market for MBPs to trend downwards towards the 13” line or the Airs.  I see the value add in the MBP lineup, but let’s face it, $1799/$2199 in the 15” range isn’t exactly cheap.

    The 15” and 17” Mac Book Pros are squarely aimed at the market in which time is money. I see those models providing a superb value to pros. The integrated Intel graphics chip set provide for battery savings when not running graphics intensive apps and real raw power when rendering or editing tasks are demanded.

    Any of the refreshed MBPs running Lion will deliver an outstanding experience.

         
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    Posted: 25 February 2011 01:48 AM #26

    That’s the good part.  Apple is bigger on graphics than ever so it needs to deliver reasonably future-proof GPUs when it comes to future OS releases.  The Intel HD 3000 graphics are certainly adequate for Lion, and the new CPUs are well above par.

    Consider me mildly frustrated that the form factor Mac I’d want for a laptop (15” screen) is exactly as you say - resolutely targeted at professionals/prosumer types who have no problem forking over the cash.  The compromises (pricier quad-core instead of cheaper higher-clocked dual core, cost tradeoff resulting in an under-spec’d-ish GPU for the $1799 skew) and product build will do great with the intended market.  Luckily the rest of us seeking good graphics power and bigger screens for less money and less portability have iMacs.

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    Posted: 25 February 2011 02:09 AM #27

    TMI, AT.

    TMI.

    That aside, I wonder sometimes if I’m really a closet MacBook Air seeker at heart.  Do I need 500GB on my HD?  Heck no, my laptop would only carry selected datasets and apps (mostly productivity) for security and efficiency purposes.  Am I really gonna play Starcraft 2 on it when I’m not at home?  Not unless I have Wi-Fi I can trust and a wireless mouse I don’t mind taking with me everywhere…oh, and I have to be really bored too.  Do I really need a super-deluxe GPU when I have my iMac for the heavy lifting?  Don’t I really want fast booting times and a speedy interface for my mobile computing and ‘Net-related tasks?  And so on and so on.

    But then I must have my ports, including the all-important FW800 (though Thunderbolt on the Air may help with that!).  I will not accept a res under 1440x900 after iPhone 4 and the ginormous iMac display.  The discrete GPU will future-proof me to at least OS X 10.8-ish.  And every so often, I do need a DVD drive.  So I’m steered back to the $1799 MBP, a far better deal than the Air value-wise, and which in all honesty is a pretty decent “sweet spot” for borderline prosumers, if not for the somewhat disappointing Radeon 6490M GPU (if only I could upgrade it!)

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  • Posted: 25 February 2011 02:27 AM #28

    adamthompson3232 - 25 February 2011 06:20 AM

    Haha re: TMI. As for DVD drive, I have the Apple $79 external drive. It’s how I loaded MS Office onto my machine. Don’t tell MS but I also loaded it on my girlfriend’s machine. Once “everything” is in the Mac app store the external drive won’t be necessary for me. All I use my machines for are basic spreadsheets, basic word documents, a ton of AFB posting, and other web stuff. The MBA is perfect for all of these. If only I had a purse to put it in.

    I have a man bag.  It’s black, not pink.

         
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    Posted: 25 February 2011 02:30 AM #29

    Manbags, AT, right?

    I’m still old-school.  The $1799 MBP has 90% of what I want (I’d cough up the $100 to step up to the 1680x1050 display and maybe another $100 for a 7200RPM drive), 5+ years of future-proofed CPU (at least I hope), 3+ years of GPU future-proofing, 5+ years of storage requirements, and a flotilla of connectivity.  May be a little heavy, but hey, helps burn calories.

    I want my V12 when a nice V6 would do just fine.  Apple would love me as a laptop customer, I can tell.  LOL  My only defense:  $1799+ isn’t impulse buy territory, and my computing needs allow me to keep waiting for the next, even better MBPs.  Of course, iPhone 5, that’s a different story.  And when I think about it a little more…maybe the iPad 2 is all I really need!

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    Posted: 25 February 2011 02:35 AM #30

    Man bag? No thanks.