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Apple’s PC Industry Profit Hammer Lock

Although the company's premium Mac product line only accounts for about 5 percent of unit volume, Apple takes about half the profit for the PC industry

Apple is just killing it in the PC market. Although the company’s premium Mac product line only accounts for about 5 percent of unit volume, Apple takes about half the profit for the entire PC industry.

Apple increased Mac shipments in the March quarter by 5 percent, which sounds like a small gain. However, given the 4 percent decline in the overall PC industry, Apple’s gain is effectively double.

“Macs continue to be very consistent, with a very consistent market,” said Carolina Milanesi, chief of research at Kantar Worldpanel ComTech.

“It’s a good business for them,” said Van Baker, an analyst with Gartner. “Plus, the Mac helps them sell other products and sustains their image in the market because they can put the latest technology in their machines.”

That said Mac average selling price is North of $1,300, while the average selling price of a Windows PC is around $600. Yes, Mac sales are growing in a down market.

But that’s only half the story. According industry watcher and stat genius Horace Dedieu, Apple’s Mac pulled in 45 percent of overall PC industry profits, which is astounding.

And, the future isn’t bright for Windows PC makers either. Market watchers expect the PC industry to further contract by 6 percent in 2014. Pretty much everyone expects Mac sales to continue growing as Apple has outgrown its PC competition for 31 of the last 32 quarters — nearly 8 years.

Holy cow! Yep, the Mac is killing it.

Again, Apple’s growing absolutely at the same time that it is capturing a bigger and bigger share of a shrinking market — for its PC industry competitors, the Mac’s profit dominance is recursively evil…

What’s your take?

Via ComputerWorld