So this is it. A brand new chip from Cupertino, Apple M1. More powerful: 3.5x faster CPU performance. 6x faster GPU performance, 15x faster machine learning — yet more efficient: battery life up to 2x longer. Chip Designer and Software Developer could give all the praise, but we aren’t tech geek, we investor care about money only.
Our question is simple, Can M1 bring more money for Apple? How M1 will boost Apple's earnings? Of course, we need to see upcoming years of results to make a confirmation, but at least we have to make some hypothetical.
The most straightforward impact surely is Macbook sales. With all these advantages, Apple could bombard the market with cheaper products (yeah, relatively) but more powerful and efficient. But Macbook accounts for only less than 10% of Apple's total sales, even with the extraordinary growth, it only translates a little In earnings.
Apple is well known for its ecosystem. Their devices communicate so well with another: Texting iMessage from your Mac laptop, Notes app syncing between all Apple devices, Flawless File Transfer from one device to another, Apple Watch to unlock Macbook, I don’t go all night long with this list. Android could, but not as smooth as Apple’s. These harmonies give the convenience feel and make the price premium.
Many argue that with this new chip, all Apple devices will communicate more harmony, more efficiency, and smooth. We agree, but how much this new Macbook could boost iPhone sales or other devices? When every device Synchron in seamless harmony — iPhone with a keyboard and 13.3-inch screen BigSur and Macbook in your hand — then so what? To pull out the best of Apple is to own all its devices — and it is large inertia. Thus, we don’t expect this new SOC could attract new customers to have an iPhone.
In the term of unit sales, the iPhone has been declining since 2014, rising in unit price help the company to offset that falling number. This is the problem — and the arrival of a new chip will not fix it.
- Apple iPhone is Luis Vuitton-like business, it is premium and could cast premium price but the declining trend is worrying us.
- Apple will make great sales of its M1 Macbook, but at the moment, we don’t think it will boost iPhone sales.
- So much hurdle for its new processor M1, we need to see how developers react with the new architecture. Lack of support from developers means fewer apps and will drag sales. We need to see how this M1 works.
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