Apple’s Fiscal 4Q Preview: What To Expect Of The Mac

Daniel Martins

Welcome to another edition of the Apple Maven’s earnings preview series – we started the countdown a couple of weeks ago. As a reminder, I have already covered a few topics of conversation regarding Apple’s upcoming earnings day:

Today, I will talk about the Mac, which has been having a great year despite all the challenges in 2020.

A look at last quarter’s numbers

Before we talk fiscal fourth quarter, below is a snapshot of the Mac’s results last quarter. Desktops and laptops have been selling like hot cakes lately, with revenues coming in second only to the iPad. Worth noting, PCs have been declared a mature or declining product category several times in the past, but the stay-at-home economy has breathed new life into this market.

In the third calendar quarter, third-party research companies IDC and Gartner have reported an increase in the Mac’s share of the PC market, even though the former has published higher sales numbers than the latter. In any case, should IDC and Gartner be directionally right in their views, expect a strong quarter of PC sales for the Cupertino company.

The Apple Maven’s expectations

I believe that the Mac will perform strongly again in fiscal fourth quarter. COVID-19 has disrupted the way that people work, learn and live, and the Mac has been a beneficiary. The back-to-school season has likely provided further support to the Mac, even though some sales may have already been pulled forward into the previous quarter.

I do have some concerns over consumers that may have held back on their Mac purchases in anticipation of new models. Apple has already announced that it will produce devices with ARM silicon, but the new version has not yet been unveiled. Still, I do not expect this factor alone to cause too much of a drag on Mac sales in fiscal fourth quarter.

Read more from the Apple Maven:

Previewing Apple’s Week: Earnings Anticipation

Apple This Week: iPhone 12 Sends Stock Higher

Apple’s iPhone 12: Early Signs Of Success

(Disclaimers: the author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Apple Maven)

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