Today's news from Scott Moritz over at TheStreet.com: Apple Mac Sales Surging
- iPhone fever may have obscured the robust growth in Apple's (AAPL) Macs.
- People familiar with the company say Apple is selling computers at a blockbuster pace. The Cupertino, Calif., company is expected to sell 2.35 million iMacs and MacBooks this quarter, TheStreet.com has learned. A sales number that high would beat analysts' estimates by nearly 400,000 units.
- Pegging the average Mac sales price at a conservative $1,500, a beat of that magnitude stands to boost Apple's top line by about $600 million. Analysts expect the company to post fiscal first-quarter revenue of $5.94 billion.
- The popularity of Apple's computer lineup has been fueled by a robust back-to-school buying spree and a revamped iMac roster, say industry watchers.
- Apple has about 3% of the world's computer market share
- Looking ahead, people inside the company and those close to Apple's plans say there will be a big announcement regarding a so-called subnotebook Mac. The ultra-thin device will have a 10-inch to 12-inch screen; sleek, rounded edges; and weigh less than 2 pounds.
- The subnotebook's introduction is planned for next quarter, and the product is expected to be available for the holiday sales season. In preparation for a big year-end sales push, Apple has told some employees to cancel vacation plans "between Thanksgiving and Christmas," says one source familiar with the memo.
Takeaway: What more is there to say? This company is a home run in every way - cool stuff, that is easy to use, that teenagers love, teenagers that turn into college students, who turn into young consumers. A company that can charge a premium on the same mass market components than other companies just due to cool factor. Think Nike of consumer electronics. This constant consternation about a price cut here, or XXX amount unit miss there, blah blah. Missing the forest for the trees. 3% computer market share. What happens if Apple gets 6% in the next 3 years? or 10%?
Looking at the numbers above, we are looking at potentially a 20% surprise to the upside on computer sales and a 10% upside surprise on revenue from the computer division alone! And now we are talking about an even lighter and smaller notebook? (other than concerns about too small of a keyboard) all I can say is "hit". But wait it took them 74 days instead of 43 days to sell out a million iPhones. Tragic ;) Again, the only fly in the ointment is this Steve Jobs options backdating situation... but operationally this company is turning into a 1 stop shop for everything consumer electronics; and can sell it all at a premium to competitors on 'brand' name alone.
Long Apple in fund; no personal position
