NPD data shows Apple sales and revenues in freefall

NPD data shows Apple sales and revenues in freefall

Summary: Data released by NPD seems to suggest that while PC sales and revenues have experienced a small year-on-year growth, Apple sales and revenues are in freefall.

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Data released by NPD seems to suggest that while PC sales and revenues have experienced a small year-on-year growth, Apple sales and revenues are in freefall.

I've organized the NPD data in six charts, three relating to sales, and three relating to revenues.

Unit growth

Revenue growth

The shocking data here relates to Apple notebooks sales. Up until February, year-on-year sales in this segment were strong for Apple, but things took a huge dive in February, with units down 7.5% and revenues down a massive 14.3%. Desktop data also looks like a bloodbath. While PC desktop year-on-year units are down 10% and revenues down 12.4% year-on-year, Apple desktop units are down an unbelievable 36.4% year-on-year, dragging revenues down 42.5% year-on-year. These numbers have got to make scary reading for Apple investors.

The reason for the decline? I'm guessing that price has a lot to do with it. I expect that Apple will experience an increase in units and revenues for March, but at present I'm not convinced that the recent Apple product refreshes will be enough to turn things around for a while.

However, even given this data, I think that it's too early for Apple to blink and start cutting prices. Apple's got the cash to weather the current financial storm. Dropping prices is a one-way street and once the economy turns around it would be hard for Apple to start increasing prices again.

Thoughts? Anyone here put off buying a new Mac in the current climate because of price? Do you think Apple should drop prices or hold out and weather the storm? Do Microsoft's recent "Get a PC" ads have anything to do with Apple's declining revenues and unit sales?

Topics: Apple, Banking, Enterprise Software

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94 comments
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  • Make More Money

    Will Apple be punished for not representing the rank and file? Will loss
    leadership and offering a $400 netbook turn this poor company
    around?

    Oh who cares.

    Thanks ZDNet for inciting another battle in the class war that has
    pitted the dilettante Apple user against the blue collar IT warrior.
    Thanks, but it's a bit old.

    Rest assured the freefall happens from a safe height. Cash cushions
    the impact. The world in which no one is left to afford a Mac, will
    probably have some bigger issues to deal with. Till then, thanks for
    the genuine concern for Apple's well-being. If you find the gear too
    expensive, give it a pass, or... I don't know... make more money?
    Harry Bardal
    • I agree ...

      "Rest assured the freefall happens from a safe height"

      Yeah, and that's lucky.
      Adrian Kingsley-Hughes
      • Not luck

        smart business. There's a difference.
        frgough
    • Nice.

      <i>If you find the gear too
      expensive, give it a pass, or... I don't know... make more money? </i>
      <br>
      could you possibly be more smug?
      (maybe the benzene is getting to you Harry)<br>

      <i>Oh who cares.</i><br>
      You had it right with this, but you kept going.
      xuniL_z
      • Not competent?

        "If you find the gear too
        expensive, give it a pass, or... I don't know... make more money? "

        I'll make more money. Even if I didn't I'd still spend my money on Apple (or another) in order to void Microsoft of my cash.

        Sorry phoney Linux guy....I and we will spend to put MS in the hole.
        No More Microsoft Software Ever!
        • Why did your title have "not competent?" in it?

          To each their own, fearful of Microsoft guy.
          <br>
          You really don't realize how amusing statements like "I and we will spend to put MS in the hole" are to us do you? <br>
          Let's put it this way. It's like hearing my 5 year old Son say "I'm the fastest runner in the whole world, Dad". Only without the cuteness of course. <br>
          :)
          xuniL_z
    • You focus on the wrong reasons

      When you say:

      "Thanks ZDNet for inciting another battle in the class war that has
      pitted the dilettante Apple user against the blue collar IT warrior.
      Thanks, but it's a bit old."

      You make it sound like its ZDNet's fault that this kind of arguing back and forth breaks out. The fact is that it is interesting news in a recession as to how the different tech companies are weathering the storm. It would seem to suggest from your comment that the better alternative would be for ZDNet not to report on Apples falling sales at all, and certainly not make any comparison with regular PC sales. That doesn't make any sense.

      When the bickering starts its the fault of those who get into it, and most particularly those who make ludicrous statements in the process. The article itself doesn't really slam Apple in any significant way. I would hope that people would approach the article with consideration that Apple wasn't slammed. Sensible feedback might involve some reasonable speculation as to why Apple has dropped as significantly as it has, but the flamers have no one to blame but themselves if they start the war up.
      Cayble
      • No I Don't

        No I don't focus on the wrong issue at all. The setting of the agenda is
        everything. The opinions that follow, including mine, either endorse or
        reject it. The opinions that follow don't matter beyond their ability to
        affect that agenda. By that standard, your own post does precious
        little. Adrian cues up an Apple agenda to get some hits and more
        power to him. The problem is that he's a tourist. His livelihood
        depends on open architecture. Apple doesn't owe him a living, and
        thats a little scary for a PC repairman. He had next to no experience
        with Apple until he was gifted with a loaner by Apple themselves, and
        he's been sniping at them off and on since. His preparedness to weigh
        in on Apple dwarfs his actual experience with the platform. He owns a
        mini and a touch, his investment and experience with the gear is next
        to nil, and this is the guy you're allowing to pander to you. I'm going to
        consider the source even if you're not. I'm most harsh against those
        damning with faint praise since the hard core indite themselves.

        Adrian is better than the real salesmen for Windows inevitability like
        Ed Bott, but I'm not sure that's a compliment. Apple just released
        updates to the iPhone platform yesterday. It's been an exceptional
        platform with unrivaled popularity even without these new features.
        Apple's stock is up, their cash hoard is the envy of literally everyone. If
        there is a downturn... well look around Sherlock. What we get from
        Adrian yesterday is damage control pure and simple. He has to talk
        about Apple because they generate buzz, but every newly set agenda
        bends over backwards to avoid an endorsement.

        ZDnet is not doing head to head analysis of peered and competitive
        systems. What they are doing, is compartmentalizing coverage to keep
        warring factions at war. You are buying it.


        Harry Bardal
        • Oh Harry...

          ...you do make us laugh.

          Please never go away.
          Sleeper Service
    • make more money, and what?

      Waste them on Mac, just for fun of wasting money? :)
      kiwi704
    • Looking For Blood...

      I agree with "Make More Money" author. This ZDNet author is obviously looking for Apple blood so he can gloat. I think Feb. numbers are down because it was people waiting for the new hardware to come out. It's out now so we will see a big bump in the numbers.

      cfcoder
  • Apple does not need to lower prices, but, lower priced models,

    including a netbook, might be very good for apple.
    DonnieBoy
  • RE: NPD data shows Apple sales and revenues in freefall

    Oh dear. This could get messy, Adrian.
    Sleeper Service
  • RE: NPD data shows Apple sales and revenues in freefall

    and why did the article get -ve votes? hmmm...Apple
    fanboys who doesn't have anything to say in the talk
    back.. but want to bury the article..
    5ri
  • Where are the "Microsoft?s recent 'Get a PC' ads"?

    I haven't seen any (I don't see too much TV anyway)

    Any link (e.g., at youtube)?
    markbn
    • MS can't do that

      People might buy Linux PCs, instead of Windows ones.
      John L. Ries
      • What are you talking about?

        See the last lines in italics in the blog post.
        The author is making reference to such ads as
        though they have already been aired.
        markbn
        • Sorry, I was being sarcastic...

          ...and I almost never watch TV.
          John L. Ries
          • The ads are all over...

            I've seen the "Get a PC" Microsoft ads many times. They're actually quite good... much better than the smug "I'm a Mac" ads, imho. I don't know if they are helping PC sales, but I guess it's clear they aren't hurting.
            SDJack
          • Are you talking . . .

            about the 'get a PC' ads, or the 'I'm a PC' ones?
            JLHenry