Apple: Overlooked Growth Opportunity Lurks Within
by Money Investor
For Apple (AAPL), most arguments surrounding the valuation and future growth trajectory for the company center around iPad and iPhone sales. On the surface, this makes sense as these two products accounted for 72.4% of total revenue in FY2012. However, the contrarian in me feels that the potential growth for the Mac products is being overlooked by the market. Some refer to PC's as Windows based computers and the Mac product as something entirely different. In this article, references to the PC market will include both Windows and Mac computers. Before going further, I should note that many now believe that the definition of PC should include products such as the iPad. I tend to disagree with that point of view. Spending my day in the business world I see that the iPad certainly has a complimentary role to play in certain lines of work. However, it is not debatable that the traditional laptop or desktop still has a far more dominant role in the vast majority of businesses. Just think of every time a company hires a new employee. In just about all instances, the employee is given a laptop or desktop. Companies do not forgo giving their employees a PC in lieu of giving them only a tablet. On this note, Apple has a robust lineup between the Macbook Air, Macbook Pro, and iMac to compete in the PC market. The company has seen market share gains in this market over the years. Yet they still do not even make it onto the chart when discussing market share by vendor. The global PC market saw over 350M units shipped in 2012. Unequivocally, this number will continue to face downward pressure as consumers continue to convert to the tablet form factor. However, the market share opportunity and financial gains as detailed below are there for the taking should Apple make a definitive push to capture them. read more »
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