Apple’s Q1 2019 Results and a question about Mac and iPad

Looking at Jason Snell’s excellent charts over on Six Colors — as ever really well done and amazingly timely — we can see that iPad has essentially stabilised in to a $5 bn per quarter business, or $20 bn annually.

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Looking at the Mac, whilst more volatile, it’s round about $6 bn to $6.5 bn quarterly, call it $25 bn annually.

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With so much talk about two major topics, Mac portables being replaced by iOS-type devices (iPad derivatives if you like) and ARM processors replacing Intel’s ones, the risk and the opportunity for Apple lies in one basic question : Can Apple turn a $20 bn iPad revenue and a $25 bn Mac revenue into a $45 bn hybrid/replacement device revenue ?

This is what they would have to accomplish if the Mac was to be completely replaced.

I’m somewhat simplifying the question I know, as Macs are made up not just of portable devices but static ones too. But nothing is written in stone that says that Apple can’t make a perfectly serviceable ‘portable’ device that is also an extremely powerful static device when on the desk hooked up to a xK monitor in the future. Think Different.

It’s these challenges make this industry so fascinating to watch from the sidelines.

30 January 2019, F.W.I