This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple Mac Market Growing Faster Than PCs

CUPERTINO, Calif. ( TheStreet) -- Apple's (AAPL) Mac products, boosted by stellar enterprise sales, are increasing the pressure on PCs running Microsoft's (MSFT) Windows software, according to Needham & Company analyst Charles Wolf.

"Notwithstanding its premium prices compared with Windows PCs, the Mac should continue to grow faster than the PC market, propelled by the halo effects now emanating from the iPod, iPhone and iPad," he wrote in a note released on Tuesday.

Apple's booming Mac sales are increasing the pressure on PCs, according to Needham analyst Charles Wolf.

The consumer tech giant sold a record 4.13 million Macs during its recent fiscal first quarter, highlighting the technology's booming popularity. "At 23.5%, Mac shipment growth in December was a multiple of the PC market's growth rate of just 3.4%," added Wolf.

The analyst explained that that, just as the iPod and iPhone helped lure consumers onto the Mac platform in recent years, so the iPad is continuing this trend among enterprises. "The surge in Mac sales in the business market coincided with the introduction of the iPad in the second quarter of 2010," he said. "In less than a year, the iPad has been deployed or piloted in 80 of the Fortune 100 companies, and it's reasonable to assume the device has invaded smaller businesses at a similar pace."

Apple has already sold more than 14.77 million iPads, and is expected to sell almost double that number in 2011.

"The halo effect emanating from the iPad will be far stronger than the iPhone halo effect in the business market if only because the iPad is a kissing cousin of Apple's family of notebook computers," wrote Wolf. The Mac, he added, should continue to gain share from PCs, aided by the preponderance of Apple Stores.

Apple also launched its Mac App Store earlier this year, intending to emulate the success of its App Store for iPhone, iPod and iPad apps. The move was seen as an additional challenge for Microsoft's PC software business.

There has already been talk of a decelerating PC market, with Goldman Sachs (GS) recently lowering its 2011 PC forecast. Technology research firm Gartner also noted that worldwide PC shipments grew just 3.1% year over year during the fourth quarter of 2010, as tablets and gaming devices gain in popularity. Gartner had originally forecast fourth-quarter growth of 4.8%.

Bucking the trend somewhat is No. 2 PC maker Dell (DELL), which saw its revenue from commercial laptop and desktop computers increase 10% year-over-year in its fourth-quarter results, released after market close on Tuesday. PC share leader HP (HPQ) reports its first-quarter results next week.

Apple shares rose $4.54, or 1.26%, to $364.44 on Wednesday.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,288.92 +22.93 0.13%
S&P 500 2,011.02 -0.34 -0.02%
NASDAQ 4,576.78 -16.6450 -0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs