The iMac is # 1, New AirPods, Margins and More – 24/7 Wall St.

Even before Apple Inc. (NASDAQ: AAPL) introduced its updated iMacs last month, the all-in-one was on course to become the industry bestseller in the March quarter. . The expected chip shortage this year should allow Apple to overtake HP as the biggest seller of all-in-one computers.

Citing a report on tech industry news site Digitimes, MacRumors notes “evidence to suggest that more affordable all-in-one PC brands are much more affected by the global chip shortage as vendors donate. prioritize their shipments to support more premiums. [all-in-one] high-end devices like the iMac, which sells for between $ 1,299 and $ 1,699, “see only the limited impact of component shortages.”

Digitimes also reports that HP sold 925,000 all-in-ones in the fourth quarter of 2020, while Apple sold 860,000 and Lenovo 731,000. Apple said it expects shortages of chips represent roughly $ 3 billion to $ 4 billion in revenue for the June quarter.

MacRumors is also reporting the launch of a new high-fidelity version of Apple Music and a third-generation version of the company’s popular AirPods. The Apple Music HiFi will be available for the same monthly price of $ 9.99 and could steal a walk on Spotify, which is expected to release its own high-fidelity upgrade in the fall. It’s unclear if Spotify will charge more for the upgrade.

Is Apple reaping the fruits of the development of its own silicon, the now famous M1? If so, it will likely show up in the company’s reported gross margins. The Digits to Dollars blog did the math and concluded that the move to M1 in the MacBook probably represented an improvement in gross margin of around $ 300 million.

This represents about 0.3% of Apple’s revenue for the March quarter, or nearly $ 90 billion. Digits to Dollars points out that the main benefit of the M1 chip is that it helps Apple sell more MacBooks, and soon iMacs and iPads: “Saving $ 75 on a $ 2000 laptop is good, but selling another laptop at $ 2000 thanks to silicon is much better. “

Apple shares fell about 3.5% on Tuesday as the tech sector fell nearly 1.9% following comments by Treasury Secretary Janet Yellen on the possibility that the Federal Reserve must raise interest rates. Yellen went back on her original comments, but not before markets closed for the day. In pre-marketing Thursday morning, Apple stock was up less than 1%.

The Nasdaq Composite Index fell by almost the same amount as Apple. The Dow Jones industry, however, closed mostly flat on the day, although its largest component fell 3.5%. As Barron points out:

One of the main reasons that the Dow Jones hasn’t fallen dramatically is that the index is mostly skewed towards value companies, whose stocks haven’t suffered much. In fact, 14 of the 30 stocks in the Dow Jones rose, showing that there was a lot of good performance on the index.

Finally, the second day of the antitrust case filed against Apple by Epic Games saw the judge in the case, Yvonne Gonzalez Rogers of the Northern District Federal Court of California, ask some pointed questions of Epic CEO Tim Sweeney. In particular, she asked Sweeney about what he knew about the economics of non-gaming applications.

When he said no, Gonzalez Rogers commented, “So you have no idea what impact what you’re asking for on developers who engage in these other categories of apps, do you? not?” Ouch.

READ ALSO: Big Wall Street Guru Sees Potential 5% -10% Drop in Next 6 Months

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