After last night’s Apple earnings report, analysts were over the moon.
In part because Apple’s biggest business, Macs, was finally recovering!
The evidence for this? Unit sales were up 4% year over year!
Unfortunately, the unit growth in the Mac business in the quarter was spurred primarily by price cuts. And there’s no free lunch. This is why, despite the modest unit growth, Mac revenue SHRANK 8% year over year.
Ultimately, revenue is more important than units. Here’s a look at the revenue growth of the Mac business over the last three years, ending with the latest quarter:
The -8% in the most recent quarter probably represents a modest market-share gain, which is good. And it’s true that -8% is an uptick from the sharper decline of 16% in the prior quarter. But it’s nothing to get excited about.
The bottom line: Apple’s iPhone is blowing the doors off. But Apple’s Mac business–its biggest business–is not.
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