Comments on: Report: Mac sales hit a slowdown

Early returns from Black Friday had been positive, but November numbers from NPD indicate a loss of momentum for desktop Macs, according to a Wall Street Journal story.

[themainbreeze]

besides being unconvincing and unsubstantiated, Apple will be the the only computer company in the world to grow earnings yet again at a time when all others are shrinking come January's earnings report.

[winstein]

Apple needs a Netbook, perhaps an iNewton

[Erictheruler1]

how about they drop the I from everything. I'm thinking the originality got them where they are to keep putting an i in front of everything is just trying to copy success without innovation.

[iGordonW]

It is interesting the use of statistics and how the use of data can be used to skew perceptions. On looking at the graph in the article it appears that Mac sales have fallen off a cliff until you realize that it is strictly about relative rates of growth. I would categorize the graph as slightly misleading and the article itself a bit short in analysis as, based on my careful parsing of the information in the article:
- all other manufacturers have been discounting heavily (we'll have to see what this does to their margins)
- apple offered slight discounts and have a small fall (especially given the difficult times we are in)

Given the current environment this does seem that apple is doing a very good job, the better analysis for me would be to include days of inventory, product types and gross margins in the mix which would provide a much better basis for comparing the health of companies in the industry as this will reveal pricing flexibility, ability to make model changes and provide a window into the next few months. If someone is selling a boatload of $300 netbooks with a 5%-10% margin and minimal other attach rates vs someone selling systems at an average $1500 with a 25% margin and high attach rate (plus brand loyalty) I would bet on the latter for long term sustainability.

[pjhenry1216]

The headline comes from the point that they're sales are down from the same time last year. Originally people thought they were untouchable by the economic downturn. This shows otherwise. The other point they made is that sales industry-wide were up while Apple sales were down. Due to the extremely high volume of sales compared to Macs, other PC makers don't need the high margin that Apple needs to make up for comparably low volume.

[Zoobie]

I agree--it's all about the math and spinning numbers. It's indisputable that Apple has a YOY decline of 1% which they (or their shareholders) can't be happy about, but on the other hand, they are still selling significantly more than 2 years ago. No company can continue to grow at 30 - 50% per year--Apple growth will naturally slow because the water mark is higher than it used to be. Mac is doing well with education, graphic arts, and home users. Until they breach the corporate world (which I know it has in isolated instances, but the vast majority of Fortune 1000 are Wintel houses), there is a ceiling on their growth.

[Penguinisto]

Okay, let me get this straight - notebooks sales have rocketed, but 'the sky is falling' because desktop sales dropped in stores (not counting online sales, I suspect)?

Plus, I sincerely doubt that HP and Dell can continue with fire-sale price slashings (sometimes upwards of 30% or more) - their margins are pretty thin as it is.

[Seaspray0]

Penguin, I won't just dissapear. "any 13-year-old couldn't figure out how to use it" is not the same as your quote "any 13 year old can write a script". Where's your 13 year old who can WRITE it, not be given it. I'm still waiting. Put up or shut up.

[MaLvaDo39]

iPod Touch = Netbook

[winstein]

For the price of an iPod Touch, I can get a Netbook with 10" screen, 120 GB HD, Wifi, running Linux, OS X, or Winodws. Running iTunes or any other application for the desktop. I have an iPhone, so I would rather get an Apple netbook. But if one is not available, I'll get it somewhere else.

[john55440]

In addition, NPD understates HP and Dell sales, because it doesn't include sales on HP.com or Dell.com.

[kirkules]

This 1% off is Wall Street crap that looks at the short term and declares disaster. That's what wrong with this whole economy. No long term strategy credit.

My sister just got a new HP laptop from her Hubby. Nice machine with the fake plastic chrome. Wouldn't refuse it if she gave me one for Christmas . . . . but the new aluminum die cut MacBooks are authentic metal through and through. Its the difference between a makeup queen and a woman who is beautiful cause she's well naturally beautiful.

[Seaspray0]

So do you have those big plastic bumpers on your car or is it brushed aluminium?

[Mr. Dee]

Is this the end of the Apple gravy train? No PC manufacturer is immune, so I hope those Cults take a hard look and realize the fruit is about wither on the tree until Apple gets its over exorbitant pricing in line with Windows PC OEMs.

[troyrader]

Folks needs to compare a similarly equipped dell or HP (normal pricing, not desperate sales or holiday pricing) and the difference then is not that great, and sometimes very close.

[bonesbautista]

I'm the target market - business is a little slower than it was last year, but I'm still buying Mac hardware. This year's different in that I'm waiting for Macworld Expo this year; last year Leopard Server was on the market and was a no-brainer - 10.6 Server is likely due out soon (my Apple Store Business Consultant tells me) or I'd be looking at it versus getting a copy of Exchange Server. I need a few new machines, but can wait a few more weeks to see what Apple's new OS has to offer - not wanting to pay for a few upgrades within a couple of months or so, plus the install and training time...

[ikramerica--2008]

This doesn't count sales from Apple.com, or any web retailers. It also doesn't count education sales, etc. I highly doubt too many MacPro machines are being sold in retail stores. So it really points to is a sharp fall of in iMacs and minis in the retail chain. Considering the cost of the iMac and the age of the mini's technology, this is not surprising. It might indicate to Apple that they have to lower iMac prices, or that the black and aluminum design is not as popular as the older white color?

[RobinQueens]

I bought my my family 4 iTouch's on black friday, they were 16gb, Generation 1 @ $!99 at amazon, there was no way I was buying it at apples so called discount (which to NYers) barely makes it a little less expensive than tax free. and who needs the cheesy speaker of gen 2? I saved hundreds of dollars by getting Gen 1.. the 2.2 update makes it as good and a great deal. No macs for me until the new mini comes out. IF it comes out.

[Ipopngraphics]

@ mr dee... cults? this was the first posting in a long time to have actual discussion instead of rantings and ravings of the Wintel crowd.... until your post. Sorry, but our apples are immune to your worms... and pretty much immune to the economy. Those of us who know a good thing when we have it are not going to switch to something "cheaper", we will just be smarter about saving for when we finally do need an upgrade (5-7 years between necessary upgrades, using Apple since 1990). After all, with superior hardware construction, superior OS and no hacker issues, why on earth would we waste money on something else that CAN'T provide that, ESPECIALLY when times are tough....

[AppleSuxLeo]

The Mac still only has about a 2.2% worldwide share of the market. Barely a blip on the radar.

[johnqh]

Any study without revealing how it is done is worth ****.

1. How was the decline calculated? Does NPD send people to observe in store? If so, is that 1% decline for same store sales? How about the new Apple stores and Best Buy?
2. Some websites (MacMall, MacConnection) had heavy promotion this year. All Mac websites (appleinsider, macrumors etc) have comparison charts to tell readers where to get the best deal (and it is not from Apple).

[DrtyDogg]

They report the numbers the same way that they have for a decade now. Keep in mind that this is the same market research company that CNET has quoted over the last few years during Apple's higher than average growth.

There is no bias here except from the comments section. 6 months ago or so when Tom reported NDPs numbers saying that Apples growth was double that of the rest of the PC world, all of the Apple fanboys chimed in to applaud. It's funny to see that now that the numbers aren't so great many people(probably the same who where clapping earlier) are now questioning the numbers. /rant

Apple will be fine though the decline in growth was expected, everyone in the industry has seen it. Personally I wouldn't have expected a decline YOY but it is just one month, their quaterly results will be more telling, Christmas + Macworld = Great Sales. The sky is not falling Apple's profit margins are large enough to keep them in the black.

[AppleSuxLeo]

PC rulez ! Oh Mohave....

[DrtyDogg]

Pointless post.

[BtmnHatesRbn]

Another CNET swipe and free ad space for M$.

[DrtyDogg]

Has it been free ad space for Apple when durning the last 24+ months CNET was reporting Apple's record growth?

[Seaspray0]

I bet an $800 laptop would have sold well. But NOOooooo.... apple didn't want to make one. They could have sold more if they were willing to do some good sale prices (with their profit margins, they easily could have done that). But NOOoooo... apple didn't want to do that. And before you all go blasting my comments, understand this: My wife was given her choice of which laptop she wanted for christmas this year; completely her decision (she comes from an all mac family). For the reasons above, she went with PC over apple and loves her new laptop.

I'm speaking for the consumer here. Apple runs the risk of losing alot of sales unless they get their prices in the range that consumers are willing to spend and they'll need to drop that rediculous profit margin and offer us, the consumer, better deals on a sale.

[ittesi259]

How nice your wife made a computing choice and she is happy with it. How funny that you somehow use that to blast Apple. Im failing to see the connection here. And since Apple is more targeting my demographic, the ones that don't think before they buy and don't care about cost (the popularity of the iPhone is case in point considering its overpriced and so are the service plans) and I don't think Apple will fret that you don't like their prices.

[ittesi259]

The economy is in recession....notebooks continue to outpace desktop sales...and apple is down....1%?? Um, yeah given the circumstances sounds like they are doing pretty well. And well if you're attracting new buyers that don't switch computers every year and you make a product that lasts....yeah this doesn't surprise me.

[Vegaman_Dan]

Luxury goods typically decline in sales during economic downturns. I don't see this downturn in Mac sales to be anything unusual or unexpected.

[weeman17]

Price seems to be the main issue i have!!!!!!