CUPERTINO, Calif. ( TheStreet) -- Apple (AAPL), which holds its annual shareholder meeting tomorrow, is enjoying healthy dollar growth in its Mac business, according to analyst firm Needham & Company.
"Apple's discipline in holding Mac prices fairly steady in the face of plunging Windows PC prices translated into dollar share gains in the December quarter," wrote analyst Charles Wolf in a note released Wednesday. "The Apple story could contain an upside surprise if the Mac can sustain the relative growth rates it sustained in the September and December quarters."
According to Wolf, Macs accounted for 10.5% of total dollars spent on home PCs worldwide during the December quarter, up from just under 4% in the fourth quarter of 2004. Apple's performance in the U.S. home market was even more impressive -- it holds almost 20% of the dollar share.
With a unit share of 5% and nearly 10% respectively in the worldwide PC and U.S. markets, Apple's dollar growth bodes well for the tech bellwether's results in 2010. In an improving IT spending climate, Apple is well positioned to protect its margins and boost revenue, which grew more than 30% in the first quarter.A number of companies, notably computer makers Hewlett-Packard (HPQ) and Dell (DELL), are eyeing an improving PC market, although this could be impacted by serious pricing pressure. Recent years have seen an explosion of low-cost mini-computers (netbooks), driving down prices elsewhere in the PC sector. Recent research from online retail site Pricegrabber.com revealed that the average laptop price dropped to $645 in December 2009 from $808 in December 2008, thanks largely to the advent of netbooks.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV