Return of the Mac $AAPL

December 12, 2023

Apple Inc. (AAPL) enters the holiday season with a glimmer in its eye. Despite a consecutive fourth-quarter sales decline, the company's recent earnings beat analyst expectations. LikeFolio's insights paint a more optimistic picture, especially for Apple's non-services segment, crucial for driving its ecosystem and service revenues.

To kick off, check out AAPL mentions – surging more than +25% higher YoY.

What’s driving this? It’s most important product: the iPhone.

iPhone Continues to Shine

Apple's iPhone remains a strong performer. Sales aligned with Wall Street forecasts last quarter, posting a 2% year-over-year increase. Google Trends data highlights a surge in "new iPhone" searches, peaking during Black Friday and rivaling last Christmas's interest levels.

Mac Gains Momentum

Interest in the "new Mac" is also rising, alongside an expected rebound in the PC market. analysts suggest "There is evidence that the PC market’s decline has finally bottomed out." Inventory is expected to return to normal by the end of 2023 as long as holiday sales do not collapse. Apple may be ahead of the game here. Mentions are on the rise after a multi-year decline.

Mixed Responses in Wearables and Other Products

Searches for the “new Apple Watch” are trending positively, hinting at its potential as a top holiday gift. However, AirPods and Apple TV searches show less enthusiasm, remaining flat or slightly lower year-over-year.

Services Segment Remains Robust

Apple's services continue to excel, with last quarter's revenue hitting $22.31 billion, a 16% increase from the previous year. This growth highlights the importance of Apple's hardware as a gateway to its services.

Market and Consumer Sentiment Shift

Despite an initial 3% drop in shares post-earnings, LikeFolio data reveals a positive shift in consumer sentiment. Happiness levels for iPhone and Mac users are also up by 3 points Month-over-Month as consumers make purchases. Apple's overall happiness rating stands at 65%, consistent with last year and up 8% post-keynote.

Forward Outlook

Apple's performance this holiday season hinges on the iPhone and Mac. LikeFolio suggests a strong quarter ahead, particularly if Mac sales complement the iPhone's success and web visits continue on their current trajectory higher.

With shares slightly below year-to-date highs and expectations set lower, Apple is well-positioned to surpass market predictions.

Bottom line: Apple faces a pivotal holiday season. Strong iPhone sales and a potential Mac resurgence, coupled with robust services growth, position the company for potential success. Apple's ability to leverage its hardware for service revenue will be key in the coming quarter.

Want deeper insights? Get Free Access to The Vault.


Related Posts

Why Apple's Earnings Report Doesn't Matter

Last September we used Purchase Intent data to predict that […]

Read More
Roku Earnings: What LikeFolio Data Is Telling Us

Roku makes streaming devices that allow its customers to stream […]

Read More
iPhone Holiday Sales Off To A Slow Start

The day after the keynote address, our Consumer Purchase Intent […]

Read More
1 2 3 16

Related Posts

Related Reports

About LikeFolio

LikeFolio analyzes social media data to accurately predict shifts in consumer behavior. We sell data and insights to professional investors, corporate research teams, and software providers.
© 2024
 LikeFolio. All Rights Reserved.