Actaully it was Macs that helped Apple this past quarter. And Macs remain their biggest money-maker.
What part of the coverage of the conference call that say that per revenue per unit of macs went down last quarter didn't you get?
Sure there was a jump in Mac revenue last quarter because there was a product refresh. You'll see hiccups on every refresh.... even of cash cow lines.
A cash cow is a product for which you limit your R&D and future investment in. Not concerned if dies off over the long term. Not necessarily the thing that brings in the highest profit margins.
The other action that happened in the quarter was that there was an iPhone OS upgrade would allow Apple to release deferred software revenue into the balance sheet. It is very doubtful think Macs (as harware + software system) have higher margins than a pure software entity of an OS upgrade.
That iPod is going to shrink. I know Apple is spinning that as iPhone/Touch cannibalization, but that is also going to be due to increasing competitive pressures since more digitial music is
not DRM tied to only their iPods. Usually when anticompetitive devices are removed providers typically loose share.
It's a misconception that Apple is no longer about their computers. The past refresh to the Macbook line (already refreshed in October 08),
Refreshing by running in place price wise (or with minor adjustments) doesn't contraindicate a cash cow.
However, not following market driven prices often does though.
The picture is muddled. The price correction, not the refresh, was the more indicative aspect though.
And the upcoming tablet-like device will really blur the lines.
Actually it will make the lines
more clear.
If this is an iPhone OS device and Apple refuses to get off the $1,000 price line even into next year, then that is increasingly indicative that Macs are cash cows. Apple barring Macs from competing in space reserved for a iPhone OS device then that is a clear indicator of which platform has priority.
If the MacBook line refreshes and there is slight or very close overlap between the two. (or it is actually a Mac Book mini or Mac Book Tablet ). Then yeah it will be blurry.
Apple appears to be reserving a price point for some device (or perhaps devices). [ above the $499 which is "impossible" to go below and below $999 ] If only one family is allowed to enter then it is clear they intend to allow an umbrella effect to incrementally kill off the Mac line over an very extended period of time.