In this series
In a previously published series on Apple (AAPL) titled Apple beats all estimates to produce stellar fiscal 1Q15 results, we mainly covered the company’s most valuable business—the iPhone. This product contributed about 68% to Apple’s revenues in 1Q15. Meanwhile, other Apple businesses such as Mac and App Store are also showing strong revenue growth.
Apple Mac continues to gain market share
Apple sold 5.5 million Macs in fiscal 1Q15, a year-over-year growth rate of 14%. A report from International Data Corporation, or IDC, predicted Apple would sell 5.75 million Macs—250,000 more units than it did. Having said that, IDC had underestimated Mac sales in the September-ending quarter, so it evens out in the end. More importantly, Apple has managed to gain share in an otherwise declining PC market.
The IDC report notes that Lenovo, HP (HPQ), Dell, Acer, and Apple all gained share in the PC market. The “Others” category, which include small PC vendors such as Sony (SNE), ASUS, Toshiba, etcetera lost market share. This was the main reason why the overall PC market declined by 2.4% in the last quarter.
Apple reverses the Mac average selling price decline in the last quarter
Apple has now gained market share in 34 of the last 35 quarters. Another interesting win for Apple Mac in the last quarter is that it managed to reverse the declining trend of its average selling price, or ASP. As the chart above shows, Mac’s ASP declined sequentially from fiscal 2Q14 before increasing by $58 in fiscal 1Q15.
The main reason for the past ASP decline was price cutting of the company’s Mac models including the MacBook Air and iMac. For example, in July last year, Apple introduced a new entry-level 21.5-inch iMac priced at $1,099. This was $200 cheaper than the earlier lowest-priced iMac.
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