In a new report by Loup Ventures, analysts Gene Munster and David Stokman say demand for Macs and iPads over the past 12 months has been strong, propelled by the digital transformation and work- and learn-from-anywhere tailwind. And the analyst say the best days for both products are still ahead.
“….June is typically the slowest quarter for Apple, so if there was ever a quarter for the company to catch up supply with demand, it’d be this one,” they write. “Taking a step back, many thought the March quarter was as good as it gets for Apple, with 70% and 79% growth for Mac and iPad, respectively, and 54% overall revenue growth. In our view, things are going to get even better for Apple, driven by an accelerating digital transformation that we cannot yet fully comprehend.”
On the negative side, supply constraints will probably take a few more months to iron out, likely modestly tempering Mac and iPad results in the September quarter. On the positive front, Loup Ventures believes elevated demand will be longer-lasting, thanks to the work- and learn-from-anywhere tailwind, along with the ongoing transition of the Mac lineup to M1 chips.
“As a reminder, the MacBook Pro 16”, iMac 27” and Mac Pro are expected to transition to M1 chips over the next twelve to eighteen months,” Munster and Stokman write. “We estimate these models represent around 30% of Mac revenue.”
Loup Ventures is a research-driven capital research firm.