Growth expected on Mac
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Economic conditions and product release schedules resulted in a 34% year-over-year decline in Mac revenue. , but similar effects are expected to drive strong Mac growth in the holiday quarter.
Supply chain issues in 2022 led to a surge in Mac sales in September 2022, which was the main reason for the decline in Mac revenue in the fourth quarter. Apple also released the 15-inch MacBook Air in June 2023, which also impacted fourth-quarter earnings.
There were no conditions at the end of 2022 that led to a challenging fourth-quarter comparison, so the Mac will post strong growth in the first quarter of 2024, Apple CFO Luca Maestri said in the quarterly earnings call. wearables will face significant challenges in the first quarter as supply issues have pushed device demand into the 2022 holiday quarter that won't be there in 2023.
Both of these situations arose because initial demand and sales caused a spike in revenue at launch, but because these products were not available at the time of launch, the spike in revenue occurred later. Macs released earlier in 2022 gained traction in supply in the fourth quarter of 2022, while the Apple Watch, released in September, didn't gain traction until the first quarter of 2023.
“Mac's revenue was $7.6 billion, down 34% year-over-year, driven by challenging market conditions and exacerbated by difficult comparisons in our own business, which resulted in our faced supply disruptions due to plant shutdowns in the June quarter and were subsequently able to meet significant pent-up demand in the September quarter,” Maestri said when contacted. “We also had a difference in launch timing: the MacBook Air was launched earlier this year, in the June quarter, compared to the September quarter last year.”
“We have great confidence in our Mac lineup and are excited about the recently announced iMac and MacBook Pro powered by our M3 chips,” continued Maestri. “Our base installs are at an all-time high, and half of Mac customers during the quarter were new to the product thanks to MacBook Air. Additionally, we saw Mac customer satisfaction in the US stand at 97%.”
Year-over-Year percentage change in Mac revenue
Apple M3, M3 Pro and M3 Max releases and new Macs in November will drive Mac revenue plus Q1 2023 did not represent difficult comparison for this line. Customers who purchased the new devices will begin receiving them on Tuesday.
