The Mac is back — and the M1 chip Gets credit

The Mac is back — and the M1 chip Gets credit

With the iPhone continuing to drive the bulk of Apple's sales and new products like Apple Glasses and the long-rumored Apple Car looming in the future, it's easy to overlook the product that started it all, the Mac. But lately, Mac sales have been making Apple party like it's 1984.

Apple today (April 28) announced its quarterly results for the three months ending March 27. While the overall numbers are positive, the Mac results stand out in particular. Mac business sales for the quarter reached $9.1 billion, a 70% jump over the same period last year. This is a record for Apple's Mac division.

Even though Apple's Mac sales have been strong in the first three months of the year, they are still a drop in the bucket compared to other segments of Apple's business. Apple's services and iPhone sales are much larger, with the latter accounting for 54% of Apple's total sales in the past quarter.

Still, the last three quarters have been the best three quarters for Mac sales in the history of the entire product line. This is not bad for a segment of Apple's business that has felt increasingly put on the back burner in the age of smartphones, wearables, and subscription-based services.

Mac's recent performance is particularly impressive given the recent history of Apple's computing division: in fiscal years 2018 and 2019, Apple reported Mac sales declined in four of eight quarters and sales were flat in one additional quarter. fiscal 2020 Mac sales also declined in the first half of fiscal year 2020, which is a significant turnaround for Apple.

It is not hard to pinpoint the reason for the Mac's recent success, but it starts with the M1 chip now found in several new models. the Apple Silicon was first announced at the Worldwide Developer Conference last year. The first laptops with Apple chips appeared in late 2020, and the current growth in Mac sales is due to "a very enthusiastic response to the new Macs with the M1 chip," Chief Financial Officer Luca Maestri told Wall Street He spoke to analysts about Apple's performance in a conference call today.

Last year, Apple released three new machines powered by Apple Silicon: the 13-inch MacBook Pro with M1, the MacBook Air with M1, and the Mac mini M1. These three machines are driving Apple's strong Mac sales. iMac 2021, the fourth machine, debuted last week. iMac 2021 pre-orders begin this Friday (April 30), so the device will not impact Apple's revenue until later this quarter.

Apple Silicon is not the only company that is getting more people interested in getting a new Mac. Apple executives acknowledged that the company is benefiting from two effects of the coronavirus pandemic.

"Both the Mac and the iPad are incredibly appropriate products for our customers in today's work and learning environment," Maestri said. (17]

Apple's Mac and iPad businesses may be in a bind now that they are trying to break out of the coronavirus blockade. Demand for computers and tablets is beginning to subside somewhat. But Apple appears to be taking steps to address it.

Consider the new products Apple announced a week ago. Besides that iMac 2021, there is a new iPad Pro, also with the M1 chip. Apple has yet to mention any further products. However, the company has promised to move its entire Mac lineup to Apple Silicon, and recent reports suggest that production of the M2 chip has begun.

Besides new products, Apple executives do not expect a return to pre-pandemic conditions on all fronts.

"Where this pandemic ends, it appears that many companies will operate in a hybrid-like mode," CEO Tim Cook told analysts. And telecommuting and telecommuting productivity will remain critical."

Whatever the demand for laptops and desktops, Apple seems poised to meet it. The switch to Apple Silicon may be a major reason for this.

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