Apple (AAPL - Free Report) has been planning a major overhaul of its Mac Pro computers, released in 2013, for quite some time now. Finally, the company revealed to TechCrunch that it is likely to unveil the same in 2019.
Apple has not given any information on product specifications but confirmed that it will still be modular. The company is also taking into account the feedback shared by top users and developers in building it.
Notably, Apple has created a new Pro Workflow Team that coordinates with the company’s hardware and software teams to identify and solve “workflow bottlenecks”. The team also interacts with customers in order to ensure that the products meet their specific needs.
Bloomberg recently reported that Apple is planning to replace Intel’s (INTC - Free Report) chips used in Mac computers with its own from 2020. However, it’s unlikely that the new Mac Pro computers will feature them.
Shares of Apple have gained 20.3% in the past year, slightly outperforming the industry’s 19.4% rally.
Will the New Mac Strengthen Apple’s Position in PC Market?
Apple’s focus to strengthen its Mac offerings is expected to help it revive its position in the PC market. The iPhone-maker is currently not a major player in the traditional PC market.
Per IDC report, Apple increased its “traditional PC unit market share” from 7.1% in 2016 to 7.6% 2017.
However, it lags HP (HPQ - Free Report) , Lenovo and Dell, which have market share of 22.7%, 21.1% and 16.1%, respectively.
In the last reported quarter, Mac accounted for just 7.8% of the company’s total sales. Its unit sales declined 5% year over year as well as sequentially to 5.1 million. Mac revenues fell 5% from the year-ago quarter and 4% sequentially to $6.89 billion.
However, average sales per week increased 2% from the year-ago quarter. Unit sales were up 13% year over year in emerging markets, with all-time records in Latin America, India, Turkey, Central and Eastern Europe. Globally, active install base of Macs increased double digits on a year-over-year basis.
Globally, 60% of Mac sales were to first-time buyers and switchers, while in China the number was almost 90%.
In December 2017, Apple released iMac Pro, an entirely new product line featuring Xeon processors up to 18 cores, up to 22 Teraflops of graphics performance, and a 27-inch Retina 5K display.
We believe that by developing more innovative products, the company will also be able to expand in the education technology market, which is currently dominated by Microsoft (MSFT - Free Report) and Alphabet’s Google.
Apple carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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