Apple's Mac Revenue is Up Year-Over-Year, But it's Self-Deception
During Apple's Q2 2017 Earnings Report, Apple CEO Tim Cook noted that demand for the newest MacBook Pro remains strong and that Mac revenue grew by 14 precent year-over-year. On the surface, this seems like something to crow about, but it may be simply all that glitters.
In Q2 of 2016, Apple sold 4.034 million Macs which generated $5.107 billion in revenue. In Q2 of 2017, Apple sold 4.199 million Macs, and that generated $5.844 billion in revenue. So unit sales were up 4 percent year-over-year, but revenue was up by 14 percent. This has to be due to the fact that, as Tim Cook said in the earnings report, demand for the newest MacBook Pro remains strong. And that's one of the more expensive Macs in the lineup, so increased revenue and Mac ASP is expected.
On the surface, this seems like something to be happy about, and Mr. Cook took the opportunity to express his pleasure.
What these numbers suggest is that while the 2016 MacBook Pro with Touch Bar is popular, its sales are masking an overall decline in the sales of other Macs. That's not surprising. The Mac mini was last updated in October, 2014. The MacBook Air was last updated in March, 2015. The iMac was last updated in October, 2015. And the last MacBook was last updated in April of 2016.
While Apple is enjoying the benefits of the MacBook Pro sales, that enthusiasm can't last forever. The question is, can Apple update its other Macs in a timely fashion so that as the demand for the latest MacBook Pro fades, other Macs can take up the slack?
All we know is that we can expect new iMacs in the fall and nothing else. If demand for the MBP endures, Apple can skate for one more quarter or two. However, if that MBP, announced in October of 2016 with a Skylake CPU looks to be increasingly aged compared to modern offerings from HP and Microsoft, it could be a difficult Q3 and Q4 for Macs.
I think it's great that Apple has arranged things so that Mac revenue is up by 14 percent year-over-year. I just don't think, given its current and planned Mac portfolio, Apple can keep up this kind of transfer of focus. Emphasizing a growing Mac revenue without corresponding, exciting new products phased in is a short-term, Band-Aid strategy. In my opinion, Apple's enthusiasm for this as an enduring strategy is unjustified.
Apple should release new Macs every year, as does with iOS devices. And using standards, upgradable componentes, not soldered and not charging two or three times more for the very same upgrade component (RAM, SSD, etc) than resellers like Amazon. And if Apple wants to boost sales, it is very easy: allow others to make Macs.
What's written about here is a stop-gap strategy. Tricking up the numbers in the face of a train wreck of a road map, if you'll allow the mixed metaphor. Monopolistic behaviour - Apple can do as it pleases, because nobody else can make Macintosh. And customers NEVER forget.
Bottom line: Nobody wants to buy a computer with last year's (or older) technology in it, unless there's a substantial discount. Apple refuses to discount, so should be putting out new machines with latest technology. I don't think it matters to Apple if components are soldered or slotted, they do it because it's cheaper and can therefore update just as easily each year based on those savings.
Has anyone done the figures to discount the pent-up demand for new MacBook Pro from the 'great' sales figures Touch Baaa has achieved?
When your customers are only buying because they've waited 3 years for an update and can't expect another update for years, you're on your last chance - no matter how good pent-up demand was. I believe Apple knows it, Ive sounded pissed-off when he said 'believe me, we heard you' in that interview. 2015 MacBook Pro is not only still in the stores along side Touch Baaa, but dissatisfied Touch Baaa customers are increasingly buying 2015 over 2017.
All that nonsense about 'the emphasis is on iPhone' doesn't wash either. The Mac business is a substantial company size on its own, and can therefore manage to update at least yearly! Or does the diverse company that Apple is today still funnel everything through the same 5 top executives that were in charge pre-iPhone, when Apple was one tenth the size it is now?
Apple needs to get its priorities in order. If it literally takes people off Mac & iPad to work on iPhone, that's negligent management and understaffing businesses that are the size of a separate company in their own right. Putting all your eggs in one basket, no matter how good it looks right now, isn't sound practice.
Monopolistic treatment of customers does not un-noticed. The software most people use will run on Windows devices. The experience is not good, but balancing how pissed-off your customers have to be before they jump ship is a losing game - as can be witnessed by the REAL drop off in Mac sales. It's the equivalent of steering the leaky ship rather than managing with vision - and we've seen how that plays out. History has already repeated with Mac Pro, and the one bright light in Mac sales - MacBook Pro is about to see history repeat with a finality from which Mac might not recover.
Sadly Apple sees Mac as what's necessary to develop for iDevice and a little "Pro" window-dressing in Mojave doesn't change what all the pundits are saying - Apple's lost interest in Mac. Touch Baaa pretty much defined Pro users as developers. After 2 hours of any other kind of Pro use (audio/video), Touch Baaa throttles back to consumer/executive toy performance.