Apple has unveiled a new lineup of Mac devices with ARM-based architecture.
The new Mac devices that were announced go beyond a simple refresh of the product portfolio. The new M1 chip is also a reinvention of how products are designed from within. Also, with the new chip, Apple will be able to deliver much more speed with a lot less power usage.
What does the new architecture mean?
It means that Apple is able to combine different features that, in the previous models, were more scattered in the internal layout.
Now, most of the components are combined within the M1 chip, which can give a lot of flexibility for Apple to simplify the internal design, to allow more power efficiency and better performance for the device itself.
Why is this event important to Apple?
This event is important not just for the Mac devices that have just been unveiled, but also for all Mac devices to be announced in possibly the next two years. It is also important because it gives Apple flexibility in terms of what they can deliver not only on the hardware but also on the software side.
From a revenue perspective, it could encourage a new wave of Mac upgrades from the old architecture to the new Apple silicon architecture, following a 2020 that has already been extraordinary for personal computer sales.
Why does it matter for investors?
Investors might not see the impact of the new products right away. In my opinion, I believe that the new shift to Apple-based silicon is going to be felt over time.
Not only could there be more demand for Macs in the future, but we may see a shift in margins, now that Apple is designing everything in house. Apple may be able to cut production costs, which would be a positive for investors.
What's next for Apple investors?
With the announcement of the new Macs, Apple basically reinforced the idea that they will continue to introduce new products, maybe expanding the pricing range, which I believe is a bullish narrative for the stock over the long-run.
However I would warn investors to consider the short-term pitfalls of owning a stock with increased valuations.
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