Demand for PowerPC Macs slumps, iPods video sales strong
Slowing demand for Apple's PowerPC-based Macintosh computers appears to confirm the overall industry consensus: a significant majority of the company's customer base is withholding purchases of Mac models that have yet to be updated with Intel processors.
According to reseller channel data seen by AppleInsider, Apple's PowerPC-based Mac inventory levels are declining, but the demand for the older systems appears to be declining even faster. Meanwhile, sales of Apple's iPod digital music players have also slowed slightly from the unprecedented levels seen during the holiday shopping season, but overall appear healthy given the expected seasonal decline during the current quarter.
PowerPC Macs
Based on the data, demand for Apple's PowerPC iBooks, Mac minis and Power Macs has steadily declined over the last four weeks. Of the three product lines, demand for the Mac mini appears to have slumped the least and remains inline with supply. Inventory of Power Macs and iBooks appear to be exceeding demand.
Along with the decline in demand for Power Macs, data also shows declining customer interest in Apple's line of HD Cinema Displays. Sources have indicated that the company is working on a revision to its display offerings that will surface later this year, around the time Apple debuts its first Intel-based Power Macs. Whether the company will decide to discount the current Cinema Displays ahead of new models will likely depend on inventory levels at that time.
Last week, Apple officially discontinued its 17-inch PowerPC iMac in the United States (though it continues to sell remnant inventory to individual customers through its online store.) A $200 price reduction on the 20-inch model followed days later. In the coming weeks, Apple's PowerPC-based PowerBooks should follow similar trends as the company begins shipping the first MacBook Pro orders. Existing inventory of PowerPC PowerBooks appears to be lean, according to sources.
As previously reported, Apple is seeing strong consumer sales of its new Intel-based iMac Core Duo and MacBook Pro.
iPods
Looking at iPod demand, it appears that it will be only a matter of weeks before Apple will revamp its iPod shuffle product line with new models. Demand for the 1GB shuffle is far exceeding supply and it seems that production of the player has halted (or slowed tremendously). At the same time, there appears to be declining interest in the 512MB model, with supply lingering well above demand.
Sales of Apple's iPod nano players have also begun to trailed off in recent weeks, with both the 2GB and 4GB models approaching a supply and demand balance, according to the data. However, orders to Apple's manufacturing facilities for the 4GB model appear to have remained consistent with levels seen during the holidays.
Perhaps the biggest, and most documented, surprise has been the performance Apple's fifth-generation iPod video players post holiday. Sales of both the 30GB and 60GB models remain strong entering into February, as consumers are likely seeing the added value in the player's larger storage capacity and video playback capabilities. Of the two models, data reveals that demand for the high-end 60GB model is the strongest, with orders to Apple's manufacturing facilities declining only slightly from the levels witnessed late last year.
According to reseller channel data seen by AppleInsider, Apple's PowerPC-based Mac inventory levels are declining, but the demand for the older systems appears to be declining even faster. Meanwhile, sales of Apple's iPod digital music players have also slowed slightly from the unprecedented levels seen during the holiday shopping season, but overall appear healthy given the expected seasonal decline during the current quarter.
PowerPC Macs
Based on the data, demand for Apple's PowerPC iBooks, Mac minis and Power Macs has steadily declined over the last four weeks. Of the three product lines, demand for the Mac mini appears to have slumped the least and remains inline with supply. Inventory of Power Macs and iBooks appear to be exceeding demand.
Along with the decline in demand for Power Macs, data also shows declining customer interest in Apple's line of HD Cinema Displays. Sources have indicated that the company is working on a revision to its display offerings that will surface later this year, around the time Apple debuts its first Intel-based Power Macs. Whether the company will decide to discount the current Cinema Displays ahead of new models will likely depend on inventory levels at that time.
Last week, Apple officially discontinued its 17-inch PowerPC iMac in the United States (though it continues to sell remnant inventory to individual customers through its online store.) A $200 price reduction on the 20-inch model followed days later. In the coming weeks, Apple's PowerPC-based PowerBooks should follow similar trends as the company begins shipping the first MacBook Pro orders. Existing inventory of PowerPC PowerBooks appears to be lean, according to sources.
As previously reported, Apple is seeing strong consumer sales of its new Intel-based iMac Core Duo and MacBook Pro.
iPods
Looking at iPod demand, it appears that it will be only a matter of weeks before Apple will revamp its iPod shuffle product line with new models. Demand for the 1GB shuffle is far exceeding supply and it seems that production of the player has halted (or slowed tremendously). At the same time, there appears to be declining interest in the 512MB model, with supply lingering well above demand.
Sales of Apple's iPod nano players have also begun to trailed off in recent weeks, with both the 2GB and 4GB models approaching a supply and demand balance, according to the data. However, orders to Apple's manufacturing facilities for the 4GB model appear to have remained consistent with levels seen during the holidays.
Perhaps the biggest, and most documented, surprise has been the performance Apple's fifth-generation iPod video players post holiday. Sales of both the 30GB and 60GB models remain strong entering into February, as consumers are likely seeing the added value in the player's larger storage capacity and video playback capabilities. Of the two models, data reveals that demand for the high-end 60GB model is the strongest, with orders to Apple's manufacturing facilities declining only slightly from the levels witnessed late last year.
Comments
As for a slump in PPC sales... that certainly makes sense. It's temporary: the transition will be complete this year.
And I have a hole in my life that can only be filled by a dual-dual Conroe quad Mac Pro with 2nd-generation 30" Cinema Display, next-gen GPU that sneers at UnrealEngine 3, PhysX chip, and Blu-Ray Superdrive...
It's possible we will see a new PM earlier than expected, as Conroe is running early as well.
I'm surprised the monitor lineup is suffering as much as it seems to be. But, Apple really must put an HDMI connector on these things, or we won't be able to use them with DRM'd Hi Def content.
As a side note, has anyone ever heard of Conroe, other than the little town north of Houston, Texas, that I went to High School in?
impatiently waiting for Feb21 when I'm supposed to get my MBPro....
Z
i think if apple really makes podcasting/video-podcasting really easy via imovie, garageband, etc. (i refuse to call it "vodcasting"...), the video ipod will have created its own addictive media market.
I highly doubt that sales of PowerMacs have decreased all that significantly; since it is going to be many months before the Intel PM comes out. Intel iBooks and Mac minis should be coming out sometime this spring; but are people really willing to wait for 3-4 months if they need a new one now? I doubt it.
I could be wrong, but it seems to me that AI is looking for an Osborne affect that might not be actually happening. Or, if it is finally occurring, then it won't turn out to be as earth-shattering a deal as some people seem to think.
People said that the slowdown would happen last fall. Umm, no. How about over the winter. Nope! As we progress into spring? Maybe. Methinks that analysts and tech writers are going to attempt to make much out of little.
I predict that this transition is going to be one written about in tech history books; as being the smoothest, least problematical changeover ever accomplished.
Originally posted by melgross
I'm surprised the monitor lineup is suffering as much as it seems to be. But, Apple really must put an HDMI connector on these things, or we won't be able to use them with DRM'd Hi Def content.
I think Dell Monitors are taking a bite out of the Apple Display Market (WoW big news). While I and most anybody would much prefer a 20"+ Apple Cinema Display ($799, 20"), I chose a Dull ($499, 20"). I haven't been following the screens too closely but I think they are still the same LCD screens with different shell/industrial design. That price I got was 6 months ago (I've seen the Dull 2005FBW 20.1" for $400 since then).
So..... Free marked. My Dual 2.0 Ghz Powermac and ATI x800 don't know the difference, just my soul and pocketbook (pocketbook won out in this case).
Given that Adobe has just publicly announced that it won't be releasing Universal Binaries of Creative Suite products until the next upgrade cycle (CS3), anyone involved with this type of design work would still be better off buying a PowerPC-based Mac for use during the next 12-18 months.
Even though I had one of the very first orders in for an iMac Core Duo (which I'm happy with) and will likely buy a "Mac Pro Conroe Quadro" went it is announced in a few months, I know that realistically my PowerMac G5 dual 2.5 will be my primary machine over the next year.
Face it, in Adobe CS2, a PowerMac G5 Quad is going to annihilate anything running under Rosetta!
Originally posted by tink
I think Dell Monitors are taking a bite out of the Apple Display Market (WoW big news). While I and most anybody would much prefer a 20"+ Apple Cinema Display ($799, 20"), I chose a Dull ($499, 20"). I haven't been following the screens too closely but I think they are still the same LCD screens with different shell/industrial design. That price I got was 6 months ago (I've seen the Dull 2005FBW 20.1" for $400 since then).
So..... Free marked. My Dual 2.0 Ghz Powermac and ATI x800 don't know the difference, just my soul and pocketbook (pocketbook won out in this case).
From this story (and remember, we never really know if it's true until a while later), this is something that has just happened, ostensibly, because of a slowdown in PM sales.
Originally posted by Robin Hood
I guess this proves people aren't concerned about recent benchmarks showing that Intel Mac's aren't really all that much faster.
They're probably focussing more on the recent benchmarks that show the Cure Duo iMac IS much faster with native apps than the G5 iMac
But the article is about people "withholding purchases of Mac models that have yet to be updated with Intel processors."
That means the G4 Macs (iBook, Mini, more PowerBook sizes)--and Core Duo is clearly worth waiting for vs. a G4. If you've got benchmarks showing that a G4 is better than a Core Duo for most people's tasks--now and in the coming years of ownership--then you may wish to investigate a broader range of tests
And it means PowerMacs. Obviously, there ARE no benchmarks for pro towers--those Intel Macs don't exist yet. (Nor do the chips that will be IN the pro towers: Conroe.)
The G5 is a great chip, among the best and tests show it--a single G5 core is actually (a little) faster for most things than a single Intel Core (although no Mac currently uses Sore Solo). But better IS coming this summer or fall, and more choice of Intel Core Macs is coming even sooner. A lot of people can survive a few months wait. Be it for Conroe, or more laptop choices, or a faster Mini, or simply more native apps.
WIth the iMac Core Duo, most people will find that it is fast enough for their needs (looking forward to Universal Binary software). Only creative or specialty shops, or high-performance labs will need the quad G5. The quad is probably maintaining sales levels but the dual G5s are falling off the cliff. And probably even more now that the 20" 2.1GHz G5 is being sold for $1349 by Amazon.
As for HDMI, Apple is working with Intel on UDI to replace both HDMI and DVI; UDI will be backward compatible with DVI displays. UDI is expected to be in a product during the 2nd quarter. Since displays don't account for much revenue, and since most of them are sold with PowerMacs, I think Apple is just holding on until this next generation with UDI. And it's probably looking as much as possible to maintain its current price points for that next generation. Once you go from 799 down to 499, it's awfully difficult to move back up in pricing.
Originally posted by nagromme
But the article is about people "withholding purchases of Mac models that have yet to be updated with Intel processors."
I don't know about anybody else, but I'm holding off purchasing a G4 iBook until sales have dropped off enough for Apple to reduce their prices.
Originally posted by Robin Hood
I guess this proves people aren't concerned about recent benchmarks showing that Intel Mac's aren't really all that much faster.
Intel's laptop chip is faster than a g5 and you don't think conroe will dust current ppc macs?
Originally posted by nagromme
You know Apple's in good shape when iPods "reaching supply/demand balance" is called "sales tailing off"
As for a slump in PPC sales... that certainly makes sense. It's temporary: the transition will be complete this year.
And I have a hole in my life that can only be filled by a dual-dual Conroe quad Mac Pro with 2nd-generation 30" Cinema Display, next-gen GPU that sneers at UnrealEngine 3, PhysX chip, and Blu-Ray Superdrive...
Supply only affects price of a product, it does not indicate level of sales or interest so the fact that demand is in balance with supply is immaterial to whether sales are tailing off. Demand has still dropped regardless of where supply is. I think overall, this was to be expected. Apple quarter results may suffer a bit but if they can bring their other products over to intel quickly, they may not suffer sales at all (ie, sales in later part of year will more than offset loss of sales this quarter).
That is holding back sales right now, and might restrict them even further. It's the reason the stock came down again, starting late yesterday. It had been rising .