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New Macs with their own processors will allow Apple to nearly double its PC market share
Stock analysts are not inspired by new Macs based on Apple M1 processor with Arm-compatible architecture, but by the expansion of the company’s software ecosystem and its unification. According to some estimates, the emergence of its own PC processors will allow Apple to take up to 15% of this market.
Image source: Apple
Apple currently controls no more than 8.5% of the PC market, although demand for hardware for remote work drove a 29% increase in Mac revenue last quarter, making it the best-performing Mac in its history. According to representatives of RBC Capital, the appearance of computers based on Apple processors of its own design should attract many owners of smartphones of this brand to them already this quarter.
Deutsche Bank experts explain that some experts were expecting a drop in prices for Mac computers after switching to using their own processors, but such an effect was definitely not to be expected immediately after the debut. Firstly, the M1 processor turned out to be quite large and complex, it contains 16 billion transistors. Secondly, it is manufactured using an advanced 5nm process technology, and therefore itself is unlikely to be cheap to manufacture, especially given the inherent yield levels inherent in the early stages.
If a full transition to its own processors allows Apple to reduce the cost of PCs, then the company will almost certainly prefer to increase its profit margins due to this. Apple’s earnings per share after such migration, according to Cowen experts, will grow by 3%.
Analysts at Atlantic Equities are convinced that over time, Apple will increase its share of the PC market from its current 8.5 to 15%, and the transition to using processors of its own design will best contribute to this. The company will take control of this part of its ecosystem, making it more holistic from the point of view of the end user. Most of the experts quoted by Barron’s resource predict an increase in the market value of Apple shares to $ 133-150 at the current value of $ 119.