The Macintosh Revenue Paradox

  • Posted: 27 February 2011 12:44 PM #46

    iOSWeekly - 27 February 2011 09:52 AM

    So we have had our big MacBook pro update for 2011, who is up for guessing on what we might see in the way of an iMac update that could continue to boost sales?

    One thing I have considered is maybe a touchscreen iMac that tilts into a horizontal position. Maybe alongside a release of Lion at WWDC, with one of lions hidden features being ian OS emulation layer. One of the early features of Lion previewed was a iOS style app launcher, and apps running in full screen mode 1 which is almost a prerequisite for useful touch apps implementation (otherwise fingers would brush outside the app windows).

    Before anyone mention SJs keynote where he said no one wants to use touch screens on computers because there arms get tired, he was referring to computer screens in the vertical position, and made no mention of computer screens in horizontal positions (which would be just like a large iPad)

    So there’s my prediction: touch screen iMac with a tillable display alongside Mac OS X Lion with an iOS style touch implementation and/or emulation for ipad apps.

    I believe Apple will maintain a differentiation between the Mac products and the iOS products. The Magic Trackpad, from a practical perspective, provides much of this functionality and for developers the touchscreen market dwarfs the Mac market.

         
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    Posted: 27 February 2011 02:24 PM #47

    iOSWeekly - 27 February 2011 09:52 AM

    So there’s my prediction: touch screen iMac with a tillable display alongside Mac OS X Lion with an iOS style touch implementation and/or emulation for ipad apps.

    Maybe not this year. They’re going to have trouble making enough touchscreens for iOS products. Besides, the cost of a 21” touchscreen is probably still too high.

         
  • Posted: 27 February 2011 03:30 PM #48

    Drew Bear - 27 February 2011 06:24 PM
    iOSWeekly - 27 February 2011 09:52 AM

    So there’s my prediction: touch screen iMac with a tillable display alongside Mac OS X Lion with an iOS style touch implementation and/or emulation for ipad apps.

    Maybe not this year. They’re going to have trouble making enough touchscreens for iOS products. Besides, the cost of a 21” touchscreen is probably still too high.

    A practical consideration.  grin

    The Magic Trackpad offers many of the desired touchscreen-style uses Mac users might desire. I don’t think touchscreen macs are in the offing for quite some time. Again, the iOS-based device market dwarfs the Mac market and there’s no reason for Apple to compromise margins on Mac products to add touchscreen capabilities to the product line.

         
  • Posted: 27 February 2011 03:40 PM #49

    Drew Bear - 25 February 2011 07:00 PM

    Mac enterprise sales explode

    ? Overall PC industry growth in Q4 ?10 was an anemic 3.4 percent
    ? Overall enterprise sales grew by 9.7 percent

    ? Overall Mac sales grew 23.5 percent
    ? Mac enterprise sales leapt by a whopping 65.4 percent
    ? ?Very large business? sales doubled
    ? Sales to government increased by more than 600 percent

    This is especially good news when you consider that Mac share of the US domestic market is approaching saturation (60%?)

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    Posted: 27 February 2011 04:08 PM #50

    Gregg Thurman - 27 February 2011 07:40 PM

    This is especially good news when you consider that Mac share of the US domestic market is approaching saturation (60%?)

    I must have missed that headline. I thought it was somewhere around 10%, still very far from saturation.

         
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    Posted: 27 February 2011 04:42 PM #51

    From a view of the high end market, perhaps apple has 60 % of the customers.  (speculation)

         
  • Posted: 27 February 2011 05:52 PM #52

    Tetrachloride - 27 February 2011 08:42 PM

    From a view of the high end market, perhaps apple has 60 % of the customers.  (speculation)

    Apple owns the $1,000+ PC market in the States. This is why market share numbers really don’t matter.

         
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    Posted: 27 February 2011 06:10 PM #53

    All I care about is YOY growth and is Apple still outgrowing the market.

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  • Posted: 27 February 2011 07:25 PM #54

    Mav - 27 February 2011 10:10 PM

    All I care about is YOY growth and is Apple still outgrowing the market.

    Macintosh unit sales growth is exceeding the domestic market’s growth rate by a factor of 7 or 8 to 1. This is not an issue. The better news for Apple is the company maintains price control over its product. While there is some price elasticity in Mac demand (hence Apple’s more aggressive product pricing), Apple is maintaining high margins while growing unit sales. The same can’t be said for the competition.

         
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    Posted: 27 February 2011 07:30 PM #55

    DawnTreader - 27 February 2011 11:25 PM
    Mav - 27 February 2011 10:10 PM

    All I care about is YOY growth and is Apple still outgrowing the market.

    Macintosh unit sales growth is exceeding the domestic market’s growth rate by a factor of 7 or 8 to 1. This is not an issue. The better news for Apple is the company maintains price control over its product. While there is some price elasticity in Mac demand (hence Apple’s more aggressive product pricing), Apple is maintaining high margins while growing unit sales. The same can’t be said for the competition.

    I almost take Mac ASP as a given.  Sales keep rising, Mac prices…more or less stay the same.  In the case of the new 17” MBP, it’s $200 more than the previous base configuration on offer.  Until I see Mac prices change enough to make me raise my eyebrows, I’ll keep that issue on backburner.

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  • Posted: 27 February 2011 07:32 PM #56

    Mav - 27 February 2011 11:30 PM
    DawnTreader - 27 February 2011 11:25 PM
    Mav - 27 February 2011 10:10 PM

    All I care about is YOY growth and is Apple still outgrowing the market.

    Macintosh unit sales growth is exceeding the domestic market’s growth rate by a factor of 7 or 8 to 1. This is not an issue. The better news for Apple is the company maintains price control over its product. While there is some price elasticity in Mac demand (hence Apple’s more aggressive product pricing), Apple is maintaining high margins while growing unit sales. The same can’t be said for the competition.

    I almost take Mac ASP as a given.  Sales keep rising, Mac prices…more or less stay the same.  In the case of the new 17” MBP, it’s $200 more than the previous base configuration on offer.  Until I see Mac prices change enough to make me raise my eyebrows, I’ll keep that issue on backburner.

    Prices have to be considered within the context of innovation and an increasing value proposition for the consumer. The new 15” and 17” MPBs are an attractive product at an attractive price.

         
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    Posted: 28 February 2011 02:01 PM #57

    DawnTreader - 25 February 2011 02:43 PM

    Bringing the topic back full circle, I do expect the new MBPs to firm unit sales in the quarter and buoy ASPs.

    MacBook Refresh Could Spur Already Unseasonably High Mac Sales

    ?The refresh comes with about 6 weeks remaining in what is typically Apple?s seasonally weakest Mac quarter of the year,? Um said in a note to clients. ?However, AAPL?s last three MacBook Pro refreshes came in FYQ3, so the accelerated cycle could provide upside to our estimates for this quarter. Every incremental 100,000 portable Mac units would add ~$0.02 to EPS in FYQ2 assuming slightly lower gross margins.?

         
  • Posted: 28 February 2011 03:23 PM #58

    Drew Bear - 28 February 2011 06:01 PM
    DawnTreader - 25 February 2011 02:43 PM

    Bringing the topic back full circle, I do expect the new MBPs to firm unit sales in the quarter and buoy ASPs.

    MacBook Refresh Could Spur Already Unseasonably High Mac Sales

    ?The refresh comes with about 6 weeks remaining in what is typically Apple?s seasonally weakest Mac quarter of the year,? Um said in a note to clients. ?However, AAPL?s last three MacBook Pro refreshes came in FYQ3, so the accelerated cycle could provide upside to our estimates for this quarter. Every incremental 100,000 portable Mac units would add ~$0.02 to EPS in FYQ2 assuming slightly lower gross margins.?

    Actually, every 100,000 units is apt to add $.03 to eps, not including the revenue and earnings benefit of AppleCare, app sales and the sales of Apple’s pro-level software.

         
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    Posted: 28 February 2011 03:30 PM #59

    about 70 cents of eps ?

         
  • Posted: 28 February 2011 04:00 PM #60

    Tetrachloride - 28 February 2011 07:30 PM

    about 70 cents of eps ?

    I’m not quite sure what you’re referring to, but at 3.6 million Macs sold in the quarter the outcome would be a contribution of about $1.08 to eps, not including, software, peripherals, app or application sales not AppleCare, etc.