Mac sales up 35% in May, suggest no cannibalization from iPad

Posted:
in General Discussion edited January 2014
The NPD Group on Tuesday released its retail sales data for the month of May, revealing that Mac sales increased 35 percent for Apple and suggesting that the launch of the iPad will not slow their growth.



Analyst Gene Munster with Piper Jaffray revealed the new NPD domestic retail data, which suggests that Apple will sell between 3.1 million and 3.2 million total Macs in the June quarter. That's about in line with Wall Street's consensus expectation of 3.1 million.



The early NPD data suggests that Apple will see year-over-year Mac unit growth of between 19 percent and 23 percent, better than Wall Street's expectation of 19 percent year-over-year growth.



"This is the second data point that suggests Apple is not seeing much cannibalization in its Mac business (from the iPad)," Munster wrote. But it's a different story with the iPod.



The latest NPD data shows that iPod sales are down 13 percent year over year, which is a decrease greater than the 9 percent Munster had forecast. However, international iPod sales are a larger mix than international Mac sales, so NPD data has a slightly greater margin of error.



Munster said that the data suggests that the iPad is slightly cannibalizing Mac sales. But given the fact that the iPad has an average selling price four times higher than the iPod, he sees it as a net positive for Apple.







"We believe in the long run Mac cannibalization will exist, but will be minimal," he said. "Apple has successfully limited the iPad functionality to primarily content consumption vs. content creation on a Mac. And relative to the iPod, the physical size of an iPad provides a meaningfully different value proposition (portability vs. screen size)."



NPD's domestic data for April, released earlier this year, found that Mac sales were up 39 percent year over year in the first month of the June quarter. The numbers have remained consistent, putting Apple on pace to sell between 3.1 million and 3.2 million Macs in the three month frame.



If those numbers hold, they would exceed last quarter when Apple sold 2.94 million Macs to start 2010. But those sales were achieved without a new product launch.



Early last quarter, Apple launched new MacBook Pros, equipped with Intel's latest Core i7 and Core i5 processors in the high-end 15- and 17-inch models, as well as a refresh to the 13-inch MacBook Pro adding a Nvidia GeForce 320M graphics processor.



Then in May, the company also updated its low-end $999 MacBook, giving it, too, GeForce 320M graphics. And in June, the company redesigned its Mac mini, adding an HDMI port, a built-in SD Card slot, and giving it a unibody enclosure with a built-in power supply.
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Comments

  • Reply 1 of 57
    anonymouseanonymouse Posts: 6,558member
    Does anyone know if there are separate numbers on desktop/notebook sales available/estimated?
  • Reply 2 of 57
    maccherrymaccherry Posts: 924member
    Once we move away from all the awes and oooos of the ipad we see it is all about business.

    Funny though because last year the freaking analyst wanted to know what Apple was going to do about the popularity of the netbook.

    I'm really shocked that the person that asked didn't or failed, to realized how a cheap a** Apple laptop could hurt the sales of their more pricier laptops and desktops.

    Anyway, now we see why the ipad has limited functionality.

    It all makes since now.
  • Reply 3 of 57
    saareksaarek Posts: 1,051member
    They are amazing machines, and deserve to sell well although the new Mac Mini is a massive rip off in the UK, we pay over £100 (around $150) more than the US and yes that price includes our vat and exchange rates etc before anyone says "it's because of the vat"



    Having said that I can't wait for the iMac refresh, also where the hell is the 27" Cinema display!
  • Reply 4 of 57
    anantksundaramanantksundaram Posts: 18,651member
    With less than 5% of the global market, Macs will be the sleeper growth opportunity for Apple in the next decade. Especially as developing countries grow wealthier, as they inevitably will.
  • Reply 5 of 57
    foo2foo2 Posts: 1,077member
    I guess "we" don't need a Mac Pro update then after all.
  • Reply 6 of 57
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by anantksundaram View Post


    With less than 5% of the global market, Macs will be the sleeper growth opportunity for Apple in the next decade. Especially as developing countries grow wealthier, as they inevitably will.



    If we go by percentage of revenue or profits we see Apple leading the pack. This alone is proof that Apple is focused on Mac growth despite their success in other areas.
  • Reply 7 of 57
    anantksundaramanantksundaram Posts: 18,651member
    Quote:
    Originally Posted by solipsism View Post


    If we go by percentage of revenue or profits we see Apple leading the pack. This alone is proof that Apple is focused on Mac growth despite their success in other areas.



    But the growth will be from laptops and the Mini. Traditional 'desktop' sales (both volume and price) seem to be falling even faster than iPod sales.
  • Reply 8 of 57
    SpamSandwichSpamSandwich Posts: 29,767member
    Apple could probably grow the Mac desktop and portable business simply by promoting them as the only way to create apps... which, by the way, could turn you into a millionaire.
  • Reply 9 of 57
    boogabooga Posts: 1,075member
    Apple is doing well because they make phenomenally good machines with a reasonable value proposition. My wife bought one of the early 2010 MacBook Pros this year and it's easily the best Apple laptop either of us have ever owned. Apple really nailed it with this one. No surprise people want to buy it-- life's too short to use anything else if you can afford one of these MacBook Pros.
  • Reply 10 of 57
    spinnerlysspinnerlys Posts: 218member
    Quote:
    Originally Posted by anonymouse View Post


    Does anyone know if there are separate numbers on desktop/notebook sales available/estimated?



    PAGE 33
  • Reply 11 of 57
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by anantksundaram View Post


    But the growth will be from laptops and the Mini. Traditional 'desktop' sales (both volume and price) seem to be falling even faster than iPod sales.



    If I recall correctly the iMac was singlehandedly propping up the desktop market being the only brand and machine reportedly on the rise.



    I have to wonder if the iPad (and future tablets it will inevitably spur) will have a positive effect on the overall desktop market. I know of several people who have gotten or will be getting a desktop for their next PC after buying an iPad.
  • Reply 12 of 57
    foo2foo2 Posts: 1,077member
    Steve Jobs: "If I were running Apple, I would milk the Macintosh for all it's worth -- and get busy on the next great thing. The PC wars are over. Done. Microsoft won a long time ago."

    -- Fortune, Feb. 19, 1996
  • Reply 13 of 57
    anonymouseanonymouse Posts: 6,558member
    Quote:
    Originally Posted by spinnerlys View Post


    PAGE 33



    Page 35, I believe you meant. Thanks.
  • Reply 14 of 57
    anonymouseanonymouse Posts: 6,558member
    Quote:
    Originally Posted by solipsism View Post


    ... I have to wonder if the iPad (and future tablets it will inevitably spur) will have a positive effect on the overall desktop market. I know of several people who have gotten or will be getting a desktop for their next PC after buying an iPad.



    I definitely think it will. Most people don't really need a notebook, as a notebook, what they need is something they can take to the coffee shop to web browse or do some email, or for traveling and using it for the same purposes. Only a relatively small number actually need notebook functionality when mobile. For the first group, a desktop plus iPad is the best of both worlds -- large screen, highly productive workstation, plus small lightweight portable device -- where a notebook was a compromise -- small screen, less productive workstation and relatively large and heavy portable device -- for them before.



    I think it's also the case that owning a notebook became a bit of a style thing for a lot of people. That's also likely to change as owning an iPad becomes the more "stylish" thing to do.
  • Reply 15 of 57
    boogabooga Posts: 1,075member
    Quote:
    Originally Posted by Foo2 View Post


    Steve Jobs: "If I were running Apple, I would milk the Macintosh for all it's worth -- and get busy on the next great thing. The PC wars are over. Done. Microsoft won a long time ago."

    -- Fortune, Feb. 19, 1996



    I hope no one holds 15-year-old stated opinions over your head. The tech world was a very different place in 1996.
  • Reply 16 of 57
    jon tjon t Posts: 131member
    All this talk about cannibalising Mac sales.. doesn't anyone else think like me - that actually the iPad is going to make more people switch TO Mac?
  • Reply 17 of 57
    foo2foo2 Posts: 1,077member
    Quote:
    Originally Posted by Booga View Post


    I hope no one holds 15-year-old stated opinions over your head. The tech world was a very different place in 1996.



    You're not fully reading the statement. It shows business sense and no desire to let nostalgia get in the way of profitability. That is timeless for longterm success.
  • Reply 18 of 57
    anonymouseanonymouse Posts: 6,558member
    Quote:
    Originally Posted by Foo2 View Post


    You're not fully reading the statement. It shows business sense and no desire to let nostalgia get in the way of profitability. That is timeless for longterm success.



    Well, yes, but you also have to consider that he was still out of Apple when he said it. I think Apple's present course shows both a tendency to do more than milk the Mac for all it's worth, as well as moving on to the next big thing.
  • Reply 19 of 57
    vatdorovatdoro Posts: 52member
    Quote:
    Originally Posted by Jon T View Post


    All this talk about cannibalising Mac sales.. doesn't anyone else think like me - that actually the iPad is going to make more people switch TO Mac?



    You're exactly right. The iPhone and iPad are going to get people to buy more and more Macs. Many iPhone and iPad owners use Windows PCs right now. As these customers experience Apple quality first hand with their mobile devices, they will be much more likely to consider a Mac for their next PC purchase.
  • Reply 20 of 57
    brucepbrucep Posts: 2,823member
    Quote:
    Originally Posted by anantksundaram View Post


    With less than 5% of the global market, Macs will be the sleeper growth opportunity for Apple in the next decade. Especially as developing countries grow wealthier, as they inevitably will.



    husshhhhhh now



    mac will explode over the next 10 yrs

    the ipad is a secret entry way for all those die hard wintel mopes who will never buy a mac to join the OSX CROWD

    they just did not know that they switched thats all



    nice pain free topic



    peace 9
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