Apple Stock: Will This Catalyst Revive Growth At Apple Inc. (AAPL)?

  • Apple Inc. unveiled its latest MacBook Pro late last month.
  • Recent supply chain reports and initial sales data back Apple Inc's claims of record online sales.
  • What does this mean for Apple stock and investors?
Apple Stock Will This Catalyst Lift Apple Inc. (AAPL) Stock Higher
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Apple Inc. (NSDQ:AAPL) recently unveiled its latest 'MacBook Pro' lineup with new touchbars. Early reviews haven't been very encouraging, with one review on The Verge running the headline 'The MacBook Pro Is A Lie', highlighting how the latest flagship notebooks are designed for professional use. However, based on early sales data, customers seem to disagree with these reviews and are buying the new notebooks in hordes. Phil Schiller, Senior VP of marketing at Apple, announced in a recent interview with 'The Independent' that the new notebooks have set a sales record. Quoting from the interview:

We are proud to tell you that so far our online store has had more orders for the new MacBook Pro than any other pro notebook before. So there certainly are a lot of people as excited as we are about it.

Supporting the announcement by the Apple exec, recent supply chain reports indicate that Cupertino has increased component orders for the new notebooks, at least to the end of 2016. So what does this mean for Apple and its investors? The latest report from Slice Intelligence offers a first look at actual sales data. (See also: Is Apple Inc. Losing The Plot?)

A Peek Into New 'MacBook Pro' Sales

So how many MacBook Pros has Apple Inc. actually sold? Well, here are a few facts from the latest Slice Intelligence report which will put things into perspective.

  • The new MacBook Pro has already outsold all its competitors this year.
  • Sales of the new 'MacBook Pro' have nearly quadrupled the one-year sales of the Microsoft Surface book.
  • Apple's newest Notebooks have already generated 7X more revenue than the 'MacBook' generated at launch.

While each of the above facts are a testimony of the strong sales the new MacBook Pros are enjoying, having achieved these sales numbers in just 5 days is something extraordinary. Well, the 'initial reviews' seem to be as accurate as the recent 'Election' polls, to say the least. So, what does this mean for Apple and its Mac segment?

MacBook Pro Sales Could Drive Apple's Growth

The Mac segment contributed $5.74 to Apple's revenue in Q4 2016 (September Quarter), making up 12.2% of Apple's quarterly revenue. In terms of units, Apple sold 4.89M MacBooks in the latest reported quarter. The segment is large enough to move the needle on Apple's overall performance and hence, the strong sales of the MacBook Pro assume greater importance.

To put things in perspective, Microsoft reported Surface revenue of $4.35B over the last 4 quarters (Surface book launched in October 2015). As per reports from Jun 2016, Surface books made up 3.6% of all Surface products. Based on a 3.6% share, Surface book revenue over the last 4 quarters comes in at $156.74M. This is a very conservative assumption given that the Surface book, at $1500+, is the priciest of all Surface products. Extrapolating the findings of the Slice Intelligence report, the latest MacBook Pro could have generated $580.5M in revenue in just 5 days, or over 10% of Mac revenue reported in the latest quarter. (See also: 3 Hidden Growth Catalysts For Apple Inc. Stock)

Conclusion

Initial sales data indicates that Apple Inc.'s latest Pro notebooks are off to a very strong start. The new MacBook Pros could have added revenue of over $580M in just 5 days, which could move the needle of Apple's growth in the holiday quarter. The strong performance of the iPhone segment in combination with a surge in Mac sales could kickstart growth at Apple. This will be a respite for Apple stock and its investors, given that it comes on the back of Apple's first annual sales decline in 13 years. Is this the catalyst Apple stock needs? Only time will tell. For now, it is definitely a great way to revive growth in the 'Mac' segment. Evaluating technology stocks? Check out Amigobulls' top tech stock picks, which have beaten the NASDAQ by over 115%.

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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