Apple's government Mac sales surge 200%, enterprise grows 50%

Posted:
in AAPL Investors edited January 2014
Apple's Mac sales to enterprise and government customers in the June quarter saw tremendous growth, easily beating competing PC makers in the three-month span.



As noted by analyst Charlie Wolf of Needham & Company Monday, Mac government sales grew 200.8 percent year over year in the June quarter, well beyond the 12.1 percent growth seen by the rest of the PC market.



In addition, the business market grew 49.8 percent during those three months, besting the market-wide 15.7 percent growth in enterprise sales. Apple's best business sales came with very large companies, where Mac shipments improved 103 percent. Large businesses also bought 98.3 percent more Macs than the previous year.



"Whether the June blip was a one-quarter phenomenon or something more enduring should be revealed in future quarters," Wolf wrote.



Home Mac sales were also up 31.4 percent, besting the industrywide 25.2 percent growth. Despite the growth in business sales, the home market remains Apple's most important, accounting for 61.4 percent of all Mac shipments in the June quarter.



Apple beat the market handily in every segment except for education, where the Mac's 14.7 percent year-over-year growth couldn't match the marketwide average of 21.7 percent.



In all, Mac sales grew 31.5 percent year-over-year, ahead of the 20.9 percent growth seen by the entire PC market over 2009.







Wolf also highlighted the fact that Apple's pricing discipline has helped it to maintain a dollar share of the home PC market that is twice its unit share. While Apple had just 4.7 percent of the home PC market in the June quarter, it took 9.7 percent of the market's dollar share.



The numbers are even more impressive, Wolf said, in the European home market, where unit share is just 7 percent, but dollar share is 15.4 percent. The Mac's unit (10 percent) and dollar (20 percent) share remain higher in the U.S., "but Europe is quickly catching up," he said.







Apple sold a record 3.47 million Macs in the June quarter, helping the company's profits rise more than 77 percent. Mac sales grew 33 percent year over year, contributing to $3.25 billion in profit.



Earlier this month, Wolf noted that Mac sales are on pace to hit 14 million in calendar 2010 -- a number more than 50 percent higher than what he had previously forecast for the year. The analyst noted that Apple remains "a small fish in three very large ponds," reflecting on opportunities for growth with the Mac, iPhone and iPad.
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Comments

  • Reply 1 of 91
    MacProMacPro Posts: 19,454member
    This is the news I have been waiting a long time for. It's a small start but the graphs are moving in the right direction. Oh, the potential!



    But What's up with education? Someone at Apple needs a kick up the butt!
  • Reply 2 of 91
    SpamSandwichSpamSandwich Posts: 33,407member
    And yet, AAPL still can't break out of the pack. What is it with this wavering around $250? With all this great sales and profitability data why in the world isn't it stretching toward $300? Baffling. Are there that many sheep in Wall Street?
  • Reply 3 of 91
    But What's up with education? Someone at Apple needs a kick up the butt![/QUOTE]



    I could not agree with you more, This market segment has been Apple's stronghold

    for decades and its crucial both in revenue and mindshare. It should be growing at an accellerating pace. There is something not quite clear about this, provided Wolf's numbers are correct
  • Reply 4 of 91
    MacProMacPro Posts: 19,454member
    Quote:
    Originally Posted by SpamSandwich View Post


    And yet, AAPL still can't break out of the pack. What is it with this wavering around $250? With all this great sales and profitability data why in the world isn't it stretching toward $300? Baffling. Are there that many sheep in Wall Street?



    Agreed, AAPL is so under valued it is amazing.
  • Reply 5 of 91
    tundraboytundraboy Posts: 1,797member
    200% growth is meaningless if we don't know the absolute numbers.
  • Reply 6 of 91
    MacProMacPro Posts: 19,454member
    Quote:
    Originally Posted by Galapagos View Post




    I could not agree with you more, This market segment has been Apple's stronghold

    for decades and its crucial both in revenue and mindshare. It should be growing at an accellerating pace. There is something not quite clear about this, provided Wolf's numbers are correct



    Especially when you consider the massive growth of MacBooks in use by students themselves. It seems very off. I wonder how they define education? Perhaps only direct purchases by educational establishments. The actual use of MacBooks in Education per se is way up by every metric I have seen.
  • Reply 7 of 91
    I love the Mac, but it's stuck in the mud and has been for ten years. I don't mind though, keeps them off the radar for viruses and such.



    The future for Apple is their crippled walled garden iOS4. Steve Jobs is taking a page from the Bill Gates playbook. Don't make the best product and let the consumer decide. FORCE them into using your products. iPhone and iPad are perfect examples. And the upcoming iTV will run iOS4 for sure. You will do what Steve Jobs wants and you will like it.



    It's what customers are accustomed to in a Windows world. But without the porn.
  • Reply 8 of 91
    MacProMacPro Posts: 19,454member
    Quote:
    Originally Posted by Blackintosh View Post


    I love the Mac, but it's stuck in the mud and has been for ten years. I don't mind though, keeps them off the radar for viruses and such.



    The future for Apple is their crippled walled garden iOS4. Steve Jobs is taking a page from the Bill Gates playbook. Don't make the best product and let the consumer decide. FORCE them into using your products. iPhone and iPad are perfect examples. And the upcoming iTV will run iOS4 for sure. You will do what Steve Jobs wants and you will like it.



    It's what customers are accustomed to in a Windows world. But without the porn.



    Troll elsewhere will ya!
  • Reply 9 of 91
    finetunesfinetunes Posts: 2,065member
    Percentage growth rates can be misleading. It is better to have the actual numbers that the government purchased since we don't know how many they have been buying. The government might have been only buying one mac per year.
  • Reply 10 of 91
    nvidia2008nvidia2008 Posts: 9,262member
    Quote:
    Originally Posted by digitalclips View Post


    This is the news I have been waiting a long time for. It's a small start but the graphs are moving in the right direction. Oh, the potential!



    But What's up with education? Someone at Apple needs a kick up the butt!



    Quote:
    Originally Posted by Galapagos View Post


    I could not agree with you more, This market segment has been Apple's stronghold for decades and its crucial both in revenue and mindshare. It should be growing at an accellerating pace. There is something not quite clear about this, provided Wolf's numbers are correct



    Edu is tough because budget constraints always make people think of PCs more often than not. But with the iPad, the educational impact of an Apple product is very, very clear.



    Expect a ton of iPad sales to be taken up by edu market over the next several years, as and when Apple is able to make, service and supply them to the whole world.
  • Reply 11 of 91
    nvidia2008nvidia2008 Posts: 9,262member
    Quote:
    Originally Posted by digitalclips View Post


    Especially when you consider the massive growth of MacBooks in use by students themselves. It seems very off. I wonder how they define education? Perhaps only direct purchases by educational establishments. The actual use of MacBooks in Education per se is way up by every metric I have seen.



    But in comparison to all the edu institutions buying PCs though, Macs still may not be so dominant. Particularly in less funded places where they "need to do e-learning" but can't go Mac because of perceived price/value issues.
  • Reply 12 of 91
    SpamSandwichSpamSandwich Posts: 33,407member
    Quote:
    Originally Posted by Blackintosh View Post


    I love the Mac, but it's stuck in the mud and has been for ten years. I don't mind though, keeps them off the radar for viruses and such.



    The future for Apple is their crippled walled garden iOS4. Steve Jobs is taking a page from the Bill Gates playbook. Don't make the best product and let the consumer decide. FORCE them into using your products. iPhone and iPad are perfect examples. And the upcoming iTV will run iOS4 for sure. You will do what Steve Jobs wants and you will like it.



    It's what customers are accustomed to in a Windows world. But without the porn.



    Sounds like Techstump operating under yet another pseudonym. \
  • Reply 13 of 91
    finetunesfinetunes Posts: 2,065member
    Quote:
    Originally Posted by digitalclips View Post


    Troll elsewhere will ya!







    Best to ignore them altogether, when you respond, the post will show on those who have chosen to ignore. Thanks
  • Reply 14 of 91
    richysrichys Posts: 160member
    Quote:
    Originally Posted by tundraboy View Post


    200% growth is meaningless if we don't know the absolute numbers.



    True. But whatever the actuals, a 200% growth for a mature product in a mature market is impressive.
  • Reply 15 of 91
    quadra 610quadra 610 Posts: 6,756member
    Quote:
    Originally Posted by Blackintosh View Post


    Don't make the best product



    Except they do. By a pretty wide margin, in nearly all the areas in which they compete.



    If you're selling your Mac, by all means I'd love to take it off your hands, given that you see it as such a burden.
  • Reply 16 of 91
    boogabooga Posts: 1,081member
    Quote:
    Originally Posted by digitalclips View Post


    This is the news I have been waiting a long time for. It's a small start but the graphs are moving in the right direction. Oh, the potential!



    But What's up with education? Someone at Apple needs a kick up the butt!



    I think the "education" numbers are misleading, because student purchases are not going to count in this segment. As institutional "labs" disappear in favor of every student having a laptop, student ownership of laptops, iPads, iPods, and iPhones aren't going to be reflected in the "education" market.



    I think there's also the fact that Apple's market share in this segment has historically been high and thus there's less room for growth. If you add in shrinking federal and state assistance to education, there are a lot of schools and universities who are going to buy machines with the lowest up-front cost right now even if it means higher support costs down the road.
  • Reply 17 of 91
    ssquirrelssquirrel Posts: 1,196member
    Quote:
    Originally Posted by RichyS View Post


    True. But whatever the actuals, a 200% growth for a mature product in a mature market is impressive.



    Not really. If you were previously selling 50 units a quarter and start selling 150, you have 200% growth. Far less impressive than selling 1M previously and now selling 3M. % growth is really a generally useless fact when not accompanied by solid figures, just look at the 886% increase for Android over last year. You know, when there were a total of 3 phone models available? Compared with now when there are 87 bajillion Android phones with a new one seemingly very other week.
  • Reply 18 of 91
    Quote:
    Originally Posted by SpamSandwich View Post


    And yet, AAPL still can't break out of the pack. What is it with this wavering around $250? With all this great sales and profitability data why in the world isn't it stretching toward $300? Baffling. Are there that many sheep in Wall Street?



    The stock market sucks, still down for the calendar year. That's why.
  • Reply 19 of 91
    richysrichys Posts: 160member
    Quote:
    Originally Posted by SSquirrel View Post


    Not really. If you were previously selling 50 units a quarter and start selling 150, you have 200% growth. Far less impressive than selling 1M previously and now selling 3M. % growth is really a generally useless fact when not accompanied by solid figures, just look at the 886% increase for Android over last year. You know, when there were a total of 3 phone models available? Compared with now when there are 87 bajillion Android phones with a new one seemingly very other week.



    Hence the caveat of 'mature product in a mature market'.



    Android is not a mature product, and one could argue that the smartphone market is not mature either.



    The Mac is a mature product, and the Federal Gov haven't just cottoned onto computers. Ergo, I think we can surmise that 200% growth is impressive -- actuals or otherwise.
  • Reply 20 of 91
    At the government office we're still not allowed to receive a Mac without a special request which is close to impossible to get. Furthermore, they have not incorporated CAC card technology to Macs yet, as far as I know, so secured email cannot be used.



    Our IT staff claims that they're working on it, but knowing them, I ain't holdin my breath!!
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