Apple sees huge desktop growth in Q1

[gugucom]

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9Mjc1MjJ8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1

It is known that the desktop market is shrinking and Apple was shrinking with it. The new iMac has reversed that trend and considering canibalization has probably doubled the iMac sales. While this is good news for the iMac it must also have had devastating effects on the Mac Pro. Although no new product news were supposed to be issued in November and December Apple was forced to give the Mac Pro a speed bumb contradicting itself. This had not happenend if Apple were happy with Mac Pro sales.

Mac net sales increased $885 million or 25% during the first quarter of 2010 compared to the first quarter of 2009. Mac unit sales increased by 838,000 units or 33%. Net sales related to the Company’s Mac shipments accounted for 28% of the Company’s total net revenue. During the first quarter of 2010, Mac desktop systems net sales and unit sales increased by 62% and 70%, respectively, compared to the first quarter of 2009. This growth was driven by strong demand for iMac, which was updated in October 2009. Mac desktop systems experienced double-digit net sales and unit growth in each of the Company’s reportable operating segments compared to the same period in 2009. Net sales and unit sales of the Company’s Mac portable systems increased by 9% and 18%, respectively, during the first quarter of 2010 compared to the same period in 2009. The growth in the Company’s Mac portable systems was due primarily to strong sales of MacBook, which was updated in October 2009.

Is this another huge blow to the Mac Pro product line? We will probably know soon when the prices for the 2010 Mac Pros will launch. Perhaps there will be an announcement on tomorrow's event. It would not fit in a mobile event but it is time now to pull out of the dive for the Mac Pro.

 

[Icaras]

Hmmm, interesting. The iMac is definitely on fire. That quad core iMac is really giving the hurt on the Mac Pro.

Well, I personally really hope that the new Mac Pros are announced on Wednesday. All this fear of rising prices on the Mac Pro has me doubly worried.

 

[Umbongo]

Not that surprising, I don't think. Q1 2009 was a a period following a major global economic crash with no new product. Q1 2010 saw a major revision to their main desktop line as economy recovers, or people at least feel comfortable spending again combined with a holiday period to spend in. The yearly numbers may not be much more than 2008.

 

[hwhalers]

Is this another huge blow to the Mac Pro product line?

It's a huge blow to the 4-core Mac Pros. I wouldn't be surprised if they drop the single-socket model entirely and re-focus the MP on the higher end with a base of around 3,500-4,000 USD. But given that we're in the tick portion of the cycle, that might wait until 2011 to go along with a complete system overhaul.

As for the growth on the desktop, for a while people have wanted a upper-midrange model that didn't use laptop chips. I think Apple realized that they'd sell more iMacs with desktop chips then they'd lose in sales with extremely low-end Mac Pros. It's a blow to the high-end retail desktop PC market, too.

 

[Umbongo]

It's a huge blow to the 4-core Mac Pros. I wouldn't be surprised if they drop the single-socket model entirely and re-focus the MP on the higher end with a base of around 3,500-4,000 USD. But given that we're in the tick portion of the cycle, that might wait until 2011 to go along with a complete system overhaul.

As for the growth on the desktop, for a while people have wanted a upper-midrange model that didn't use laptop chips. I think Apple realized that they'd sell more iMacs with desktop chips then they'd lose in sales with extremely low-end Mac Pros. It's a blow to the high-end retail desktop PC market, too.

A single socket system could be a 3.33GHz 6 core, with support for 48GB of RAM, 4 internal drives and far more powerful graphics card options. That is a big difference from the iMacs. The current Mac Pro also has a much larger margin than the iMacs, so if they can still sell some they will.

 

[hwhalers]

A single socket system could be a 3.33GHz 6 core, with support for 48GB of RAM, 4 internal drives and far more powerful graphics card options.

It could. And if Apple moves completely to Gulftown then it makes sense to keep the single-socket system, as it'd have tangible benefits. The current single-socket MP is only really worthwhile to purchase for people who cannot live without PCI-E and more than 1 internal HD.

That is a big difference from the iMacs.

Whether it's big enough to support the product in the future is to be seen, though.

I'd like there to be more Mac Pros, not less, but I somehow doubt that Apple will for long keep a machine as close to the i7 iMac's price point. I may be talking through alternative orifices, however !

 

[J the Ninja]

I think they'll go all-dual-socket, but use the 32nm Quads. So there will be 8 core and 12 core options, probably starting around $2500. That makes all of the models cleanly beefier and out of the way of the iMac. It also means they only have one daughter-board to deal with, and all machines have 8 (or 12. Believe) RAM slots standard.

 

[gugucom]

I think they'll go all-dual-socket, but use the 32nm Quads. So there will be 8 core and 12 core options, probably starting around $2500. That makes all of the models cleanly beefier and out of the way of the iMac. It also means they only have one daughter-board to deal with, and all machines have 8 (or 12. Believe) RAM slots standard.

It would be a sensible approach. But the two daughter boards already exist and six cores with 32 GB RAM isn't so sloppy either.