Evercore: New Macs add to Apple's momentum in the PC market

"Apple’s advantage seems to only grow with each iteration of the M-Series." -- Analyst Amit Daryanani

From a note to Evercore clients that landed on my desktop Monday:

ALL YOU NEED TO KNOW: Apple’s Mac product line has enjoyed a great run of success in recent years, growing at a 9% CAGR since 2017, including 23% growth in FY21 and 14% growth in FY22. Mac performance in the Sept-qtr was particularly notable with revenue up 25% at a time when most other PC makers are reporting steep declines.

The significant outperformance of the M-Series chips vs. competitors has likely been a key driver of this success and Apple’s advantage seems to only grow with each iteration of the M-Series...

We are expecting Mac revenue to decline in FY23 as the broader PC market deals with a minor “hangover” effect from the strong demand over the past couple of years, but we think Apple should continue to pick up share in both the consumer and enterprise market in FY23 and beyond.

Net/net: The unmatched performance of the M-Series chips provides Apple with a notable advantage over its competitors in the market and we think share gains will be further compounded by the enterprise market as young workers who are more familiar Mac increasingly make their preferences known.

Maintain Outperform rating and $190 target.

My take: Can't argue with anything he says.

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