Here's Where Apple's Mac Sales Are Taking Off

The latest Gartner data shows Apple's Mac lineup outpacing PC growth in emerging markets.

Jul 20, 2014 at 2:00PM

Apple Macbook Air
Apple's MacBook Air laptops. Source: Apple.

Over the past few years, Apple (NASDAQ:AAPL) has managed to outpace PC growth and gain additional market share, but new data shows the company's most recent growth came from emerging markets -- a bit of a twist for some of the most expensive consumer computers in the world.

Where the growth is coming from
According to recent Gartner data, Apple's Macs are significantly outpacing PC growth in Greater China, the Asia-Pacific region, Latin America, and the EMEA region -- Europe, the Middle East, and Africa.

Take a look at Gartner's chart to see just how well Apple is doing in these emerging markets compared with the PC.

Apple Mac Growth
Mac sales data from Gartner. Image source: Needham & Co.

AppleInsider reported that Needham & Co. analyst Charlie Wolf isn't exactly sure why Apple's growth is outpacing PCs in theses markets. Wolf said he can't see any "obvious explanation for the disparity" and believes Apple's fiscal Q3 earnings release, which we'll see on July 22, will shed more light.

Long live the Mac
While Mac sales have become a smaller and smaller percentage of Apple's revenue -- they made up about 12% in fiscal Q2 2014 -- it's clear from the Gartner data that there's still room for growth.

This comes as Apple experienced a drop in yearly global Mac sales in 2013, the first since 2003.

Globalmacsales

Source: Statista.

Here's how Apple's Mac revenue has played out over the past four fiscal years: 

Macrevenue
Data Source: Statista.

To help prop up Mac revenue, Apple could continue to grow Mac sales in emerging markets -- and its latest pricing strategies could be part of that.

Back in April, Apple introduced its most inexpensive laptop ever, in the form of the $899 11-inch MacBook Air. In addition, the company launched a $1,099 iMac last month -- a full $200 cheaper than any previous iMac. These new offerings aren't included in the latest Gartner numbers, which means they could help move even more Macs in the non-developed markets.

But as Wolf pointed out, the latest sales spike may just be a quarterly blip. We'll have to wait until Apple reports quarterly earnings next week to find out more concrete information. And even then it'd be wise to take into account all the Mac sales numbers for fiscal 2014 to understand whether Apple is truly pulling ahead in the emerging markets. For now, investors should be pleased with the Gartner numbers -- but I don't think it's going to change much for Apple's stock price going forward. The lion's share of Apple's revenue comes from iPhones and iPads, and those sales numbers are typically what investors are paying attention to. 

In fiscal Q2, the iPad experienced a year-over-year sales decrease of 16%. That obviously wasn't good news for investors, especially considering the iPad makes up about 20% of Apple's total revenue. Next week, Apple releases its Q3 2014 earnings, and noted analyst Horace Dediu estimates that 16 million iPads were sold in the quarter. If true, that would be a year-over-year increase of about 10%. 

On the flip side, the iPhone continues to march on seven years after its launch. In Q1 2009, almost two years after the iPhone made its debut, Apple earned just $2.94 billion from the device. In Q1 2014, that number ballooned to $26 billion, and iPhone sales set a sales record of 51 million units. And it's still growing. In Q2 2014 iPhone sales increased 16.8% year over over. With Apple expected to introduce at least one new form factor for its new iPhone this fall, investors should look for even more growth as pent-up demand for a larger iPhone is realized.

Leaked: Apple's next smart device (warning -- it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee that its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are even claiming that its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts that 485 million of these devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and to see Apple's newest smart gizmo, just click here!

Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers