Macintosh: Apple’s overlooked growth opportunity

“For Apple (AAPL), most arguments surrounding the valuation and future growth trajectory for the company center around iPad and iPhone sales,” Money Investor writes for Seeking Alpha. “On the surface, this makes sense as these two products accounted for 72.4% of total revenue in FY2012. However, the contrarian in me feels that the potential growth for the Mac products is being overlooked by the market.”

“Apple will benefit from the lack of innovation that will accompany a smaller PC market. An entire new generation of consumers will not be brought up only using Windows based computers,” Money Investor writes. “Businesses and specifically their IT departments will adopt Mac products at a much more rapid pace as they become more mainstream.”

Money Investor writes, “The Mac growth story is one that receives little attention due to the overall state of the PC market. However, when you change that perception into how Apple can benefit from the declining PC market, you begin to see the enormous earnings power still to come from the Mac product line. While the market focuses on every headline related to the iPhone and iPad, dig a little deeper into the existing product portfolio and see the enormous potential for growth that is being overlooked.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Carl H.” for the heads up.]

18 Comments

  1. The Mac is another sector where Apple controls most of the profit. That alone is a positive sign since it directly favorably impacts profit margins.
    Of course the stock market is not interested in that. They expect Apple to grow insanely forever.

  2. i agree. yet we haven’t seen much going on in the mac line lately. (and no, we don’t need a minor refresh, just thinner) seems like apple nowadays is looking at it the same way the market does, as an afterthought.

  3. The Mac could be a huge growth opportunity

    Apple should not worry about selling 5 million Macs a quarter. The goal should be 15 to 20 million. Why? Two reasons:

    Windows 8 is less popular than Vista because of the strange interface.

    Large number of XP and Vista users who are looking for a better solution not that their machines are near the end of life.

    The Apple Macintosh is doing fine. However, it could be doing so much better.

    I have noticed a dramatic slowdown in the growth of Mac’s in the last year. In fact, I have seen several clients abandon the Mac while keeping their iPhones & iPads.

    Why? Several reasons:

    1. New Mac’s no longer have the same value proposition.
    – No longer include iWork, iWeb, iDvd in the price.
    – Loss of the very popular email greeting cards.
    – iMovie cannot handle the popular 1080 60p video format.
    – Inability of iMovie to create AVCHD disks.
    – Higher price, required to purchased external dvd.

    2. iMac is no longer the only all in one design. Clients hate cables. iMac now requires a cable for dvd drive.

    Apple needs to do the following:

    1. Make the Mac a turn key solution – clients want this!

    – Include a new version of iWeb (small businesses loved
    having an easy web publisher included). Include a
    shopping cart through Apple to encourage e-commerce.

    – Give all Mac users a .mac account for building web
    pages. This was great advertising!

    – Include enhanced iWork with every new mac. iWork
    needs:

    1. Index generation in Pages.
    2. Cover pages with ability to center vertically.
    3. Pages needs to offer academic & professional formatting.
    4. Mail merge improvements, include an enhanced
    flat file database similar to MS Works 4.5
    This program is still huge in small business, 15 years later! Currently, there is no acceptable alternative.

    5. Allow screen to be centered in Pages. Offset page
    drives MS Word users crazy.

    – Create or purchase an alternative to Quicken.

    – Enhance iMovie so it can create AVCHD DVDs. I have
    already had several clients ignore the Mac or leave because
    they need to distribute HD DVDs. DVDs are cheap
    and users of all ages understand how to use them.

    – Restore the very popular email greeting cards. PC
    users really loved this feature. It was inexpensive
    advertising! Build this into iPhoto.

    – In OS X:

    1. Ability to set a program to open full window or full
    screen. Long time Windows users freak out when
    they discover they can’t set the program to open
    full window or full screen.

    2. Bring the option for aero snap to the Mac.

    None of these features would make the Mac into a Windows machine. The first several features are restoring popular features that Apple abandoned much to the distress of many of my clients.

    The last two features are only options that would make the Windows crowd give the Mac a second look.

    c’mon apple…

      1. actually, all of Old Tech’s suggestions are excellent. BLN has offered no reason whatsoever why Apple shouldn’t reinvigorate the value proposition of the Mac with many of these simple updates.

        I for one am getting tired of seeing Cook & Co keep mismanaging the Mac platform. With simple improvements — many of them simply bundling and sales campaigns with little or no technical changes — could double the Mac market share. But as usual, Cook is nowhere to be found on the foredeck. It seems whenever he finally does show up to make a decision, it’s only iOS that he cares about…

  4. Spot on. Not generally recognized in this forum, but more important to the future of the company than all the mobile gadgets combined now and forever.

    A note of thanks to MDN for tolerating my long running call for the replacement of Tim Cook. Neither Apple Inc. nor AAPL has any possibility of returning to what was as long as he is the CEO.

    Noting that you have deleted my last couple of posts, I will simply now withdraw. We both have my position iCal’ed so we will see which of us has the integrity to acknowledge the other when the time comes. And it will.

    To those posters who have denigrated me personally, you have defined yourselves as ignorant sophomoric fools. Know this, though – you and untold legions like you – are standing in the way of the future.

    1. “To those posters who have denigrated me personally, you have defined yourselves as ignorant sophomoric fools.”

      There is something not quite right about that . . . Oh I get, you denigrate those who denigrate you. Maybe they would not denigrate you if you did not denigrate TC so whole heartedly. I really forward to see if you are as much of a prophet as you think you are.

      1. @ occasional poster: the vitriol aimed at ppeterson has been orders of magnitude worse than anything he/she has ever typed here on these forums. MDN has a large share of people who refuse to even consider any criticism about their chosen tech provider, or the CEO thereof.

        But i am inclined to think that Cook’s days are numbered if he doesn’t provide some impressive leadership soon, which will include long-overdue Mac hardware and software updates, a family of iPhones, and other obvious steps that should have been accomplished long ago. Jobs was smart enough to roll out a diverse family of iPods when he launched the “digital music revolution”. Cook hasn’t launched squat — unless you call fumbled derivative product releases to be groundbreaking.

        Cook also appears to have completely ignored Mac enterprise users.

        Apple users and investors deserve better leadership, especially at Cook’s absurd pay rate.

  5. Old Tech, iWork was never included with the purchase of a Mac only the iLIfe suite and that still is included. iMovie does support AVCHD video and can export video at 1080P. Check out the App Store and iMovie features and this is listed there. The only thing I see necessary and that I would want on your list is the full window click. Pages is very good for what it does and isn’t nearly as frustrating as Word which costs 3 times more and you can center your text to in Pages. No PC comes with built in software. No PC comes adware free like the Mac. No PC comes with a full OS unless you pay extra for it. Meaning that Windows has 4 or 5 different OS options from basic garbage to Pro which finally comes close to what OSX has in features. Oh you want server options get it for $19.99 on a Mac. See how much Server for Windows costs you. Another very important feature is service. Go to an Apple store and you have free support at the Genius Bar for software related issues or hardware that is under warranty. Go to Microsoft store for support and you have to pay $49.00 just to have a tech talk to you and that is to start. Software installs and virus removal can cost you up to $350 or more. Apple does this for free whether you are in warranty or not for software issues.

    1. Exporting a video is not the same as making a hi-def disc. Apple computers should have the ability to play and create Blu-rays discs.

      I stopped using iMovie after they replaced iMovie HD 6 with a dumbed down version that was unintuitive and failed to export HD. Dropping HD export was Apple’s dirty little secret about iMovie. You seem to think they put it back. I don’t know when, or if, they did that. When I used it, it would import HD which gave the false impression that it supported HD. However, it would not export HD.

      Apple blew away movie-makers when they introduced iMovie and iDVD. It was the cleanest, easiest, most intuitive and elegant solution for making movies. They should have continued down that path with HD and Blu-ray. They stubbornly chose not to and have been sucking wind ever since.

  6. Did by part for AAPL. Joining the rest of you fine people by updating my old 2006 iMac with a souped up 27″. Be here tomorrow. Getting excited. Wonder what Apple’s finance call will look like next quarter?

  7. Here is the thing:
    My i7 iMac runs windows 7 under parallels better then my i7 laptop runs windows. True the iMac has much more graphic horsepower then the laptop but both use 8 gigs of ram- and the mobile processor is quad core and the harddrive in the laptop actually specs out better then the one in the iMac.

    And vmware runs xp better then the windows xp mode does on the laptop.

    All this stuff says to me that Microsoft has fallen on their face and American business would be more productive if they switched to Macs. It is that simple. The problem is the corporate IT people are afraid of Macs. I think they are afraid they’ll lose their jobs because Macs require so much less support.

    One last thing, I have a few really complicated spreadsheets that require Excel, but 95% of what I do is easier on Numbers. In reality, the complicated spreadsheets really should be databases. Same thing in Word/Pages. The numbers/pages stuff looks way better too.

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