Apple’s Mac, known as the MacIntosh when launched in 1984 by Steve Jobs, was supposed to be a personal computer (PC) killer. It never happened. While sales did well for many years, they could not match those of Microsoft’s Windows-powered PCs.
Mac shipments have risen in many quarters since 2006 and peaked in early 2022. However, Apple’s Mac revenue has fallen sharply recently. In the most recently reported quarter, Mac revenue was $7.6 billion. That was down from $11.5 billion in the year-ago quarter.
Several analysts believe that people returning to work after the worst of the COVID-19 pandemic hurt Mac sales. People bought Macs to work from home. That theory assumes Macs were more popular than PCs when people could not go to their offices. (Here are five reasons to avoid Apple products today.)
Another theory is that the Mac product release cycle hurt sales year over year. Apple released fewer new Mac models in 2023 than in 2022. That may be true, but there is no solid evidence that the theory is accurate.
Another theory is that people have turned to tablets. In Apple’s case, there is little support for that viewpoint. iPad revenue was $6.4 billion in the most recent quarter, compared to $7.2 billion in that quarter the year before. The decline is not as bad as Mac revenue, but it is a drop nevertheless.
One thing is certain about Mac sales: They are part of a decline in product revenue that has stolen Apple’s overall revenue growth. Wearable and watch revenue fell from $9.7 billion a year ago to $9.3 billion in the most recent quarter.
As Mac revenue drops, along with other Apple products, revenue from Services and iPhones is what is left to lift revenue. That is not working.
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