Apple Mac demand robust as Windows PC demand slumps

“Holiday sales failed to reinvigorate PC demand,” Credit Suisse analysts write via Barron’s. “Gartner’s preliminary results for fourth-quarter PC shipments of 82.6 million units imply a 6.9% year-over-year decline and 3.6% sequential growth, which is below our PC-unit estimate of 87.8 million units.”

“We find it somewhat surprising for the PC industry to have grown so modestly in the fourth quarter. As a result, 2013 PC shipments declined by 10%, which is the largest decline in the history of PCs and second consecutive year of unit declines, while this confirms our thesis, equally we believe there may have been an underestimation, which has occurred in the past,” Credit Suisse writes. “This quarter’s results indicate that PCs were likely a low priority on holiday shopping lists, as tablets continue to grow within the overall computer market.”

“Gartner preliminary data shows 28.5% year-over-year and 4.8% quarter-over-quarter growth and market share of 13.7% in the U.S. (up 70 basis points quarter-over-quarter), which suggests Mac demand continues to be relatively robust. We believe Apple has an about 22% share (73 million units) within the tablet market this year,” Credit Suisse writes. “We see Apple as well placed in the overall compute market with respect to our forecast of 341 million tablet shipments in calendar 2014, or over 50% of computer devices. Our target price of $525 implies an 11 times multiple on our calendar 2014 estimate and we note the company has fully taxed net cash of $91 billion.”

Read more in the full article here.

MacDailyNews Take: Upside-down and backwards pretend Macs are selling like snotcakes lately, huh?

Related article:
Gartner: Apple’s U.S. Mac sales surge 28.5% as Windows PC market drops 7.5% – January 9, 2014

12 Comments

  1. And yet, they can still keep pushing and talking the Apple stock down. So, what will they do when FACTS are disclosed at the end of the month?

    Reality is reality and Apple is winning in every market they are in!

  2. > We find it somewhat surprising for the PC industry to have grown so modestly in the fourth quarter.

    It’s not “surprising” at all… These so-called “experts” seem to think this on-going slow-down in PC sales is caused economic conditions, and a transition to tablets (iPads). But if that’s the reason, why are Apple’s Mac sales still going strong?

    The true explanation – The moribund state of the overall desktop and laptop PC market is the direct result of Windows 8. NO ONE wants to buy a new PC unless they absolutely have to do it, because it comes with kludgy Windows 8. They could opt for Windows 7, and have an OS that respects desktop and laptop users (who don’t want anything to do with touching the screen). But that’s an OS that is already more than four years old, so that’s not a desirable choice either. NOTE: Things got worse AFTER Windows 8 was released; how surprising…

    And a significant number of disgruntled Windows users are buying Macs (or those Google advertisement machines). That’s why Mac sales continue to be “relatively robust.” Is it any wonder that Microsoft is scrambling to replace Windows 8 as soon as possible, and try to forget it ever happened.

    1. Unless you live in a cave, modern houses most certainly do need to have windows! How else are you going to allow light in but not the rain, wind and snow?
      Just a thought, to en!

      1. A little north of me, my Inuit friends will replace a carved block of snow with a carved block of ice to let what light is outside there is into the Igloo.

        Who needs Windows?

        1. People who’d prefer to get a little shuteye in the land of the midnight sun would do well without them; barring that they could cover them with walrus hides, or read one of Ballmer’s motivational speeches to nod off

  3. Bill Gates omce asked Steve Jobs why he bothered with Apple. “You can’t win.” he is quoted as saying.

    There is an old saying: “He who laughs last, laughs loudest.”

    And if you listen closely you will likely hear Steve Jobs chuckling quietly. He hasn’t won yet, but Apple has streaked past Microsoft and is gaining speed while Microsoft flounders.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.