Apple Mac sales start to slow in 2009: Company faces reality finally

Another one who just doesn't get it. No, Apple's marketing gold touch is most certainly not it's competitive advantage. Not even close. Apple makes tremendously well-thought-out, well-designed products that most often leave it's competitors in the dust. And once you use Apple products, you keep using Apple products. Forever. Almost no one ever "goes back". Apple customers will probably slow down their buying during this recession. That only makes sense. What they will not do is "go back". If you've used an iMac or an iPhone, you certainly are not going to buy a Dell or a Blackberry . It isn't the cool factor and it isn't Steve Jobs. It's the "insanely great" products and the way they all fit together. Those who use Apple products understand that in terms of value, rather than initial cost, Apple has always been the least expensive option, because it gives you so much more than the competition.

Yea, Mike. It should not be that hard to understand the concept of superior products winning out in the marketplace. The bigger question is what is taking so long for Apple to win the personal computer/OS war. Their solution is clearly the better one with the one disadvantage that they won't sell junk.

No, the market does get it. It's called saturation point.

All the bullshit in the world doesn't change that.

I agree with Mike's comment. Another writer who "doesn't get it". Sorry for the pun, but comparing Apple to PC makers is comparing apples to oranges. Their hardware and OS and all the peripherals WORK and are instantly intuitive - there is no figuring out. And the design is great - not just the look but the operation of each carefully thought-out, simplified piece of equipment. Go into ANY Apple retail store at ANY TIME. What do you see? Literally dozens of people fascinated with the line - and BUYING! I have had the "priviledge" of having to use both Macs and Windows-based computers as well as iPhones and Blackberrys. Windows-based machines and Blackberrys are awkward and clunky to use with limited capabilities compared to the Apple lines. And then try the Gawd-AWFUL Microsoft Office 2007 compared to Microsoft Office 2008 for Mac - whoever decided to program the PC nightmare version was on a terminal ego-trip! The Mac version is a dream and totally intuitive. SO. For the writer who wonders why someone would spend more money on a Mac? You save time in not having to figure anything out on a Mac. And by the way - they are WAY FASTER!

Your misleading statement indicates you must be short on Apple stock "apple sales start to decline in 2009 etc...." complete BS....2009 isn't here yet and your false and misleading statement is just your opinion....it goes so well in describing you as a pinhead....if your going to blog be honest about it.....

How come so many bearish Apple headlines are followed by articles that don't quite say the same thing?

Where is the demand for these headlines coming from?

Are they just for 'hits', or something more sinister?

"Apple best be prepared for reality." This is a company with 25 BILLION in the bank. Don't you think they understand reality? They could literally bail out all of the American auto industry by themselves. Does that put it into perspective?

If your premise is the same as all the other mindless bloggers, then I assume you think Apple should lower their prices in order to drive sales? Well, have you run the Elasticity on that little thought? Will Demand Elasticity outweigh Profit Margin Elasticity? Well, have you? Do you even know what I am talking about? If not check the first chapter of any Economics text. If demand does not counter the losses in profit margin then earnings are reduced. And you expect demand for computers to "increase" in this environment?

Apple is a premium brand and as such should never, ever reduce prices just to appease the groaning crowd of bloggers that have little to no experience in such matters. Since when does Mercedes, BMW, Tiffanies, or Omega ever drop their prices? And should Apple raise them back up once the economy inevitably recovers? All the while bastardizing their brand and profit margins? To what end? To be just like Dell? Too freaking funny.

Not everyone that blogs should "pretend" to be savvy in matters of business.

A blog clearly suggests an opinion, which implies that one should not hold the author liable for his information or the timeliness of its presentation. It is my opinion that print is wasteful, unless one shorts the stock or wishes to buy the stock at lower prices. If you had worthy trading advice, then trade. Otherwise allow aapl to inform their shareholders and the broader market if a revision is necessary.

Brian, why do you write articles like this? The note might have been nice before the stock dropped 50%, but i am sure you caught the move with your tremendous insight and ability to grasp impending "reality".

Do PC sales only constitute desktops? If PC sales increased by 2%, including laptops, and aapl macbook sales were still strong, does that not suggest that aapl still acquired marketshare? For your argument to be relevant you must include PC desktop sales numbers, not a figure that combines the two products - you isolated one product figure against a broader comparison. Also, you did not mention an exact figure on macbook sales - was it 10%, 20%??

Sean: "Apple is a premium brand and as such should never, ever reduce prices…"

Apple should reduce prices but only in rare circumstances, when demand is noticeably slowing down. It may happen in 2009, but Apple is not there just yet. If the company can maintain sales during the current holiday season without slashing prices, more power (profits) to them.

Evan Winter: "If PC sales increased by 2%, including laptops, and aapl macbook sales were still strong, does that not suggest that aapl still acquired marketshare?"

People don't want to wait for the end of the quarter? Is it some new trend I'm not aware of? We have data for november (Apple -1%, Overall +2%) and October: "In October, Apple shipments grew 28% YoY-4 times the growth rate of the overall market, according to NPD."

http://online.wsj.com/article/SB122938758242108907.html

Apple Fan Boys, get a life! Your stock has taken a BEATING this year. Stop trying to promote Apple just so you all can re-coup some of your lost $, we ain't buying your stock. Apple is just another average company, nothing special there. I would suggest that you sell now, before you lose more money.

Mr Noitall,

Generally correct. The only thing that annoys me about this stock is the lost implied volatility in option pricing.

the questions remains mr noitall: Why do you write on a blog about an equity you are not invested in? If you don't have skin in the game then do not criticize others about recouping lost funds, or wanting to. This goes for the retard analysts and wanna-be idiots (the word retard clearly reveals more intelligence than pinhead) who bash stocks that have already lost tremendous market cap. Brian - let me know when my stock is going to drop 40%, before it happens or keep your mouth shut. Your are not helping the investing public and the fact that you write a blog about beaten down stocks does not mean that you will get a job that enjoys incentive pay, ever!

cash is a lame investment, but aapl could play god if they wanted to. If i were the company i would employ competant people to manage shareholder expectations; with no change in direction, earnings or management, i guarantee a well placed comment on dumb analysts or production expectations for the i-phone could generate a 25% pop in the share price

holler!

I have lost money - but less than you!

I just purchased two unibody MacBooks. Amazing machines. I like the NVIDIA graphic's speed.

The tendency of an Apple user is a tough economy isn't to opt for a cheap PC... but to simply defer the purchase.

Part of the Apple value proposition is longer lifetime anyway...

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But what's AMAZING is the title of this article: "Apple Mac sales start to slow in 2009..." stated as FACT. It's just a hypothesis.

And "Company faces reality finally"? Apple has consistently maintained that they don't have visibility through the downturn. They just know that they aren't going to sell 5 times as many macs if they make $500 machines (which is what it would take to be as profitable.) In fact, the company has simply maintained that it figured it had enough resources to weather any downturn. And it certainly does.