Investing

How Long Can The Mac Be Apple's (AAPL) Hero?

In the last quarter,  Apple’s (AAPL) iPhone sales were not spectacular. iPod sales were a little under most estimates at 9.8 million units.

But, the Mac went wild. Unit sales hit 1.76 million up 33% compared to the same quarter a year ago, and above most Wall St. guesses. iPod sales grew only 22% between the two periods.

According to a report from IDC, Mac sales in the US hit 960,000 units in the US in Q2. That would put it at a market share level of 5.6% behind Hewlett-Packard (HPQ) and Dell (DELL).

But, the Mac can’t be counted on for this kind of growth in future quarters. It is now becoming a big enough thorn in the side of the large PC companies that they are likely to start to push back with new products. And, overseas PC companies, particularly Lenovo, are moving into the US with new products and marketing dollars.

Even if Apple sells one million iPhones in the next quarter, that is still a very small portion of overall US handset sales. And, the iPod is the dominant product in its part of the consumer electronics field. But, a market share of 6% in the personal computer industry is going to draw fire from companies that need to do well in that business to keep their shareholder happy.

That means that the sale of every new Mac is going to face a stronger and stronger headwind.

Douglas A. McIntyre can be reached at [email protected].

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.