Apple snags 14 percent of US-based PC retail sales in February

Posted:
in General Discussion edited January 2014
Growth in Apple's personal computer business continued to outpace the industry average last month, with Macs accounting for a 14 percent unit share and 25 percent dollar share of all US-based PC retail sales, according to market research firm NPD.



The results -- first revealed in an investor note from Pacific Crest Securities analyst Andy Hargreaves on Monday -- represent 60 percent unit growth and 67 percent revenue growth over the same period one year ago. At the same time, overall US PC retail shipments grew just 9 percent on a 5 percent increase in revenues.



Apple saw particular strength in notebook systems, which rose 64 percent in units and 67 percent in revenues, suggesting strong sell-through of the company's new MacBook Air, noted Hargreaves.



"Macbook Air sales appear to be additive to total sales, rather than replacing Macbook Pro sales," he said. "We believe a new set of corporate customers make up a meaningful portion of MacBook Air buyers."



Overall, the US retail segment combined for a 20 percent increase in notebook shipments on an 11 percent rise in revenues.



The Mac maker also saw robust demand for its desktop systems, which grew 55 percent on a 68 percent increase in revenues, compared to the overall retail segment which saw unit sales decline 5 percent on a 2 percent drop in revenues.



"Mac sales do not appear to be negatively impacted by macro environment," Hargreaves concluded. "[The] iMac continues to sell extremely well, with strong sales of larger screen sizes."



February 2008 US-based PC retail market share growth figures | Source: NPD, Pacific Crest Securities.



Meanwhile, sales of Apple's iPod digital media players remain somewhat limp, and just off their pace from one year ago.



In a separate research note from Piper Jaffray analyst Gene Munster, also issued Monday, it was noted that NPD retail sales data for the month of February suggest total iPod unit sales of 9.5 million to 10.7 million for the three month period ending March.



"Street consensus for March quarter iPods is 10.8 million, representing a 2 percent year-over-year increase; the midpoint of the 9.7m-10.5m range suggests a 4 percent year-over-year decline," Munster wrote. "We see this data point as a slight positive, given this range is a slight increase from what NPD data indicated after 1 month of data."



Both Hargreaves and Munster remain bullish on shares of the Cupertino-based Apple, with Hargreaves noting that the company's current valuation is particularly attractive with the stock trading at just 18 times fiscal year 2008 free cash flow.
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Comments

  • Reply 1 of 63
    MacProMacPro Posts: 19,379member
    WOW!!!! Fabulous news.



    Please can my shares now go back up
  • Reply 2 of 63
    solsunsolsun Posts: 763member
    Quote:
    Originally Posted by digitalclips View Post


    WOW!!!! Fabulous news.



    Please can my shares now go back up



    There is no doubt that Apple is going to have a great quarter in terms of revenue and Mac sales.. Unfortunately, I fear that no matter how much revenue and profit they make, if iPod numbers see a year over year decline, investors are going to continue to tank the stock..



    I hope i'm wrong.
  • Reply 3 of 63
    melgrossmelgross Posts: 33,028member
    This looks very good. But, what does it really mean?



    Forgetting the 14% for the moment, I would say the only numbers that matter are the Apple year to year numbers, which look VERY good.



    That's better growth than I expected. I was hoping for something in the 40%+ area, considering the economic slowdown.



    The 14% is murky though, because we need more information to know what it means. Are they including Dell's new foray into retail? Does this include online sales (doubtful)?



    Does it include business sales other than the small purchases made by small business?



    Does it include sales to schools, which are often not sold retail, but which make up a lot of sales, esp for Apple?



    14% of exactly what?
  • Reply 4 of 63
    melgrossmelgross Posts: 33,028member
    Quote:
    Originally Posted by solsun View Post


    There is no doubt that Apple is going to have a great quarter in terms of revenue and Mac sales.. Unfortunately, I fear that no matter how much revenue and profit they make, if iPod numbers see a year over year decline, investors are going to continue to tank the stock..



    I hope i'm wrong.



    We have to see how this relates to the overall digital player market. If all sales are flat, or down, then it is almost entirely due to the economic turndown. If so, then it isn't too bad. but if it's Apple's sales that are flat, or down, and other's sales are not, then it's a big problem.
  • Reply 5 of 63
    minderbinderminderbinder Posts: 1,703member
    I thought people were predicting AAPL would go below $80...bad call, or do people still expect that some time this year?
  • Reply 6 of 63
    solsunsolsun Posts: 763member
    Quote:
    Originally Posted by melgross View Post


    This looks very good. But, what does it really mean?



    Forgetting the 14% for the moment, I would say the only numbers that matter are the Apple year to year numbers, which look VERY good.




    I agree, Mac YOY numbers look great... As an investor I would much rather see better YOY numbers for the Mac than the iPod anyday.. For some reason, investors don't see it that way..



    Look at last quarter for example.. Record quarter, record revenue, record profit, record Mac sales, even record iPod sales.. Still the stock slumped because iPod growth showed signs of slowing and didn't meet expectations..



    At some point, investors are going to have to realize that the Mac and iPhone are Apple's new growth drivers and will far overcompensate for any decline in iPod growth..
  • Reply 7 of 63
    solsunsolsun Posts: 763member
    Quote:
    Originally Posted by melgross View Post


    We have to see how this relates to the overall digital player market. If all sales are flat, or down, then it is almost entirely due to the economic turndown. If so, then it isn't too bad. but if it's Apple's sales that are flat, or down, and other's sales are not, then it's a big problem.





    Agreed.
  • Reply 8 of 63
    mchumanmchuman Posts: 154member
    Quote:
    Originally Posted by melgross View Post




    14% of exactly what?



    It answers your question :



    "14 percent unit share ... of all US-based PC retail sales."



    14% of all retail (non online) sales last month in the US of PCs (whatever NPD means by PC you have to ask them).
  • Reply 9 of 63
    melgrossmelgross Posts: 33,028member
    Quote:
    Originally Posted by McHuman View Post


    It answers your question :



    "14 percent unit share ... of all US-based PC retail sales."



    14% of all retail (non online) sales last month in the US of PCs (whatever NPD means by PC you have to ask them).



    No, that doesn't answer the question. Retail means a lot of things. At one time, they didn't include sales from Apple's stores. Then they did. It's not as straightforwards as you may think.



    And, as you say, what do they mean by PC? Are they including PC based servers? Sometimes they do.
  • Reply 10 of 63
    solsunsolsun Posts: 763member
    Quote:
    Originally Posted by minderbinder View Post


    I thought people were predicting AAPL would go below $80...bad call, or do people still expect that some time this year?



    Don't know, I've never heard this, and I stay pretty up on most analyst reports and predictions..



    Where did you hear this?
  • Reply 11 of 63
    Of course if iPhone sales for the March quarter were, say, 2 million, then iPod + iPhone sales would be (via NPD estimates) 11.5m to 12.7m, much more impressive unit shipments (there were no iPhone sales in the March quarter last year). But do analysts take this into consideration?
  • Reply 12 of 63
    zunxzunx Posts: 620member
    The day that Mac OS X reaches 25% market share, Windows will be history in three years. The only thing keeping the horrible Windows alive is inertia and ignorance.
  • Reply 13 of 63
    ipeonipeon Posts: 1,122member
    Quote:
    Originally Posted by solsun View Post


    Unfortunately, I fear that no matter how much revenue and profit they make, if iPod numbers see a year over year decline, investors are going to continue to tank the stock..



    Just about every stock has tanked. It's the market itself that is causing Apple's stock to drop.



    http://finance.google.com/finance?ch...0&q=MUTF:FAGOX
  • Reply 14 of 63
    minderbinderminderbinder Posts: 1,703member
    Quote:
    Originally Posted by solsun View Post


    Don't no, I've never heard this, and I stay pretty up on most analyst reports and predictions..



    Where did you hear this?



    Sorry I wasn't clear...I was referring to predictions made by people posting in these forums.
  • Reply 15 of 63
    Congratulations to Apple on their remarkable success! Purchasing an MBA makes me a contributer to that success.



    Shame on anybody who makes money off of this success until Apple can give all purchasers (including me) a computer that functions as advertised. Two bad Apples (and many more on Apple's Discussion Boards) in under a month and I am now on my second week without a computer; only got to use it for just under three weeks.



    At what expense has Apple gained this share? How many people have suffered hardware issues due to poor manufacturing and then been forced to wait for repairs or replacements? I think we need to do some research.



    iPod nanos still have titled screens. If they are popular, then the masses don't seem to care anymore, and that is better for Apple; they can cut corners and claim the complainers are out of line and that the devices are within specs.



    Personally, I have had an unusually high number of computer problems over the years, all from Apple. Perhaps it is just my luck, perhaps not; the shear number makes me doubt that it is bad karma.
  • Reply 16 of 63
    SpamSandwichSpamSandwich Posts: 33,408member
    Quote:
    Originally Posted by Bergermeister View Post


    Congratulations to Apple on their remarkable success! Purchasing an MBA makes me a contributer to that success.



    Shame on anybody who makes money off of this success until Apple can give all purchasers (including me) a computer that functions as advertised. Two bad Apples (and many more on Apple's Discussion Boards) in under a month and I am now on my second week without a computer; only got to use it for just under three weeks.



    At what expense has Apple gained this share? How many people have suffered hardware issues due to poor manufacturing and then been forced to wait for repairs or replacements? I think we need to do some research.



    iPod nanos still have titled screens. If they are popular, then the masses don't seem to care anymore, and that is better for Apple; they can cut corners and claim the complainers are out of line and that the devices are within specs.



    Personally, I have had an unusually high number of computer problems over the years, all from Apple. Perhaps it is just my luck, perhaps not; the shear number makes me doubt that it is bad karma.



    Must be their desire to become a 100% consumer electronics company manifesting itself as shoddy quality control on the computer side...
  • Reply 17 of 63
    chris_cachris_ca Posts: 2,543member
    Didn't Mac go bankrupt after Microsoft bailed them out a few years ago?

  • Reply 18 of 63
    jimdreamworxjimdreamworx Posts: 1,077member
    That was the Windows Company that bailed them out!

  • Reply 19 of 63
    jeffdmjeffdm Posts: 12,951member
    Quote:
    Originally Posted by solsun View Post


    Don't no, I've never heard this, and I stay pretty up on most analyst reports and predictions..



    Where did you hear this?



    It's just some crank that regularly posts here that says that.
  • Reply 20 of 63
    solsunsolsun Posts: 763member
    Quote:
    Originally Posted by iPeon View Post


    Just about every stock has tanked. It's the market itself that is causing Apple's stock to drop.



    http://finance.google.com/finance?ch...0&q=MUTF:FAGOX



    Yes, I know that in general, the market has taken a downturn. But APPL has taken a worse hit than most, nearly 40%, and the bulk of that was within the first few days after quarterly results were announced.
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