• Tue. Feb 27th, 2024

Apple’s Faster Chips Alone Can Boost Mac Growth: Munster

ByShanthi Rexaline

Jan 18, 2023
Apple's Faster Chips Alone Can Boost Mac Growth: Munster

Apple, Inc. AAPL on Tuesday kicked off its launch event for the year with the unveiling of the M2 Pro and M2 Pro Max chips that would be made available for the MacBook Pro and Mac Mini.

Need For Speed: Apple used the term “faster” 23 minutes in the 18-minute presentation video, leading to the deduction that the central selling point was speed, Loup Funds analyst Gene Munster said. 

The other word used frequently was “performance,” he added.

The analyst’s estimate puts MacBook Pro and Mac Mini’s contribution to Cupertino’s total revenue at 6% compared to 10% from Mac sales.

“Apple is well aware of the power of their marketing to win over users, new and old,” Munster said. 

See also: Best Technology Stocks Right Now

Consumers’ view Macs are faster than the competition and faster than previous-generation production increases the probability of them upgrading or purchasing for the first time, he added.

The analyst expects Apple to continue to make its chips faster than any other company, “selling the benefits of speed for decades to come.” This alone can power Mac growth in the 3-5% range for the next few years.

Why It’s Important:  Apple is going through challenging times, threatened by the double whammy of supply constraints and demand slowdown. The company has to draw deep from its enviable installed device bases and also attract new customers into its ecosystem to grow its topline.

The company’s fourth-quarter results due on Feb. 2 and the commentary regarding hardware revenue growth on the earnings call are the next major catalysts for its stock.

Apple closed Tuesday’s session 0.88% higher at $135.94, according to Benzinga Pro data.

Read next: Apple Could Be Bringing Cheaper MR Headset Next Year To Capture Wider Market

 



Image and article originally from www.benzinga.com. Read the original article here.