Dwindling iPad Sales may pave way for Mac to be second in command

Last week Apple Inc. (NASDAQ: AAPL) revealed its third quarter earnings showing a strong revenue growth, thanks to increasing demand of iPhones in China. The surprise of the quarter was the 13% Mac sales annual growth.

When Steve Jobs and Steve Wozniak co-founded Apple, Mac was its only product. The product has since been outwitted by other revolutionary products from the company, including the iPhone, iPad and iPod. But due to declining sales of iPod, now Mac sales only trails that of iPhone and it is merely 6% shy that of iPad. So as it is turning out, Mac is continuingly becoming an important player in Apple’s ecosystem as far as product diversification is concerned.

Mac Sales are Growing amid a Declining PC Market

The Q3 2014 earnings report indicated that the iPhone continues to dominate as the company’s main product. The company sold at least 35 million iPhones, 13 million iPads, 4.4 million Macs and 2.9 million iPods.

However, it is the Mac that drew much attention owing to the fact that it registered a 13% growth in sales in a PC market that is in a steady decline. Much of the growth was witnessed in China where the Mac managed a whooping 39% growth, at a time when the China’s PC market declined by 10%.

In the first quarter, after Microsoft (NASDAQ:MSFT) announced that it will stop supporting Windows XP, there was unexpected ramp in PC sales. It is obvious that people were replacing their Window PCs. The announcement reduced the predicted decline rate of the PC market by over 5%, as the then the market only saw a 2% decline. But even then Mac managed to generate yet another market share growth. In fact, over the past 8 years, Mac has registered growth in each an every quarter, registering about 18% increase in sales.

Reason behind Mac’s Success

• Apple has an unmatched ecosystem and makes incredible computers. iPhone and iPad users are the force behind the success of Mac, as the more people buy these Apple’s top two most popular products, the more people are inclined to acquire Macs. Powerful integration of the two products with Mac is the greatest allure. Like when OS X Yosemite will be launched, iPhone and iPad owners will be able to start activities on their mobile devices and continue doing them in their Mac, thanks to the new attribute dubbed “Continuity”.
• In the recent past, Apple cut down the prices of Mac. In fact, it is this affordability that has made Mac to register incredible growth in the company’s third quarter. Mac has further been refreshed with relative affordability. The most powerful 15″ retina Pro model now goes for $2499.

Future Prospects of Mac

Apple relies heavily on iPhone as its primary product, and God forbid should anything happen to this product, the company may tumble. You saw how Samsung innovative product Galaxy S3 did to iPhone. Therefore, Apple needs another product that may cushion it from the market shocks. Though underestimated, Mac could be that product.

PCs are long-term investment that people don’t change as fast as they change their smartphones. This is why the PC market is struggling. Mac has endured a rough market terrain to deliver growth in 32 out of the previous 33 quarters.  And with the demand of iPad dwindling, Mac is almost catching up and it may be soon Apple’s number 2, trailing only the iPhone.