Great Quarter, Kid -- Don't Get Cocky

AIR

There’s one place where Apple is kinda-sorta-nearly competing somewhere adjacent to the low end, and that’s in the market for sub-$1000 laptops. The company’s 11″ MacBook Air got a price cut last year to “just” $899 retail, and that seems to be paying off:

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Apple sold a record 5.75 million Macs in the quarter that ended Dec. 31, an increase of 19% that beat the overall industry by a wide margin, IDC said Monday.

In a preliminary estimate, IDC pegged Apple’s sales for 2014’s fourth quarter at 5.75 million, a record for a three-month period. According to IDC, Apple sold 4% more Macs than the previous quarter, currently the record.

If U.S. retail sales are any guide, the Mac’s jump came primarily from its lower-priced laptop, the MacBook Air. “Apple had about a third of all notebook sales below $1,000 in the 14 weeks of the fourth quarter,” said Stephen Baker, analyst with the NPD Group, another research firm. “That number was only 8% in 2013.”

When a company can swoop into the highest-price segment of the low-price market and immediately grab a third of it, then they must be doing something right.

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