Dediu: With 7% of market, the Mac captures 60% of profit

But the MacBook Pro is not where the puck is going.

Horace Dediu came not to praise the MacBook Pro but to bury it—literally—in a chart posted on Wednesday that showed Mac revenue (dark blue) entombed under a mountain of iPhone gray:


Click to enlarge. Not seeing the graphic? Try the website. 

So what should Tim Cook do with the Mac, its entry in a market that is shrinking? How much of Apple's resources—in time and talent—should it expend on keeping an incumbent device alive and up to date?

In Wherefore art thou Macintosh? Dediu offers six facts that argue strongly for treating the Mac—"the parent that sacrificed for the child"—with the respect it deserves:

  • The product is in its 32nd year of market presence. A longevity that in unmatched by any other PC maker.
  • Apple reached a top five position in the ranking of PC vendors. This was achieved for the first time only this year, far along in the evolution of the market.
  • With about $23 billion in revenues per year, Apple places among the top four PC vendors in terms of revenue.
  • With an estimated $5.5 billion in operating margin Apple is the most profitable PC vendor, capturing over 60% of the available PC hardware profits.
  • The product has retained an average selling price of over $1200 for at least a decade. At the same time the average pricing of Personal Computers has more than halved.
  • Although volumes have fallen for three quarters, the product grew volumes and sales for 22 out of 29 quarters. As a result, volumes almost doubled in eight years.

As someone for whom an aging MacBook Air is his bread, butter and butterknife, I hope Tim Cook is listening.

See also: The new MacBook Pros: Nine tough questions for Apple.


  1. Fred Stein said:
    Normally I hate when people say, “Apple needs to…”
    Apple needs to expand at the low and high ends of the Mac line up, and trim the middle. Developers love the Mac and they make software for iOS devices. Return the love. Lower priced models are always needed for defense, and future upgrades.

    November 3, 2016
    • Richard Wanderman said:
      “Developers love the Mac and they make software for iOS devices. Return the love.”

      Indeed. Apple advertising is no doubt built on Macs and one could go on.

      The heavy lifting of the digital world is still done on computers and we’d like those computers to be Macs.

      November 3, 2016
  2. Keith Hope said:
    “… an aging MacBook Air…”

    Perhaps now would be a good time to move on to a current generation 13 inch MacBook Pro. I hear they are rather good.

    My own MacBook Air is awaiting retirement when the already ordered 15″ MacBook Pro arrives in a few weeks. The time for waiting has passed.

    November 3, 2016
  3. Gianfranco Pedron said:
    Slightly OT, according to IBD this afternoon:

    “Apple iPhone Grabs 104% Of Smartphone Industry Profit In Q3”

    Nothing but doom and gloom anymore. 😉

    November 3, 2016

Leave a Reply