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Tag: MacBook

  • Apple’s Mac Sales Double, Yet Lenovo Leads: Future Market Growth Hinges On Ai-enabled Pcs

    Apple’s Mac Sales Double, Yet Lenovo Leads: Future Market Growth Hinges On Ai-enabled Pcs

    The American multinational technology company, Apple, is experiencing a significant surge in iPhone sales. However, what’s particularly noteworthy is the increasing popularity of their laptops. Indeed, in the third quarter of the year, sales of Macs have doubled, outpacing the growth rate of the overall PC market. Despite such impressive strides, Apple is yet to lead in either volume or growth in this market.

    The PC Market Leaders

    Although Apple’s growth rate surpasses that of the overall PC market, it still trails Lenovo in sales growth. According to a recent study, Apple saw a 14.9% increase in shipments during the third quarter of 2025. In contrast, Lenovo, the global leader in PC manufacturing, experienced a growth rate of 17.4%, while the overall market saw an increase of 8.1%.

    Apple currently ranks fourth in terms of global PC manufacturing, while Lenovo maintains its leading position. The third-ranked Dell is the only major brand to experience a slight decline, with a 0.9% drop in growth. On the other hand, the second-largest PC manufacturer, HP, grew by 10%. ASUS saw a 14% rise in growth, securing its position as the fifth in overall shipments.

    The Role of AI in the PC Market

    The study suggests that the overall growth of PC shipments has primarily been influenced by two factors. The first is the imminent retirement of Windows 10, and the second, adjustments made in inventory due to tariffs imposed in the US. However, looking ahead, the study anticipates that the future growth of the market will be driven by the AI PC boom.

    This new wave of AI-enabled PCs is expected to begin influencing growth from next year, and fully come into effect after 2026. It is projected that this “real AI PC boom” could propel the entire PC market to unprecedented heights.

    The Importance of Quality Products

    Apple’s recent success with the iPhone 17, as well as Samsung’s success with the Galaxy Z Fold 7, underlines the role that high-quality products play in driving sales. Apple’s Mac lineup has remained robust for several years, which explains the strong sales performance of their computers. While Lenovo’s broader range of products has helped them maintain their leading position, it does not appear that Apple is necessarily aiming to compete for this title.

    Questions & Answers

    Which company leads the PC market in terms of sales growth?
    Lenovo currently leads the PC market in sales growth, with a rise of 17.4% in the third quarter of 2025.

    What are the two main factors driving the overall growth of PC shipments?
    The overall growth of PC shipments is primarily driven by the imminent retirement of Windows 10 and the adjustments made in inventory due to tariffs imposed in the US.

    What will be the major driver of growth in the PC market in the future?
    The major driver of growth in the PC market in the future is expected to be the boom of AI-enabled PCs. This is predicted to start influencing growth from next year and fully come into effect after 2026.

  • Apple Reconsidering Steve Jobs’s Stance: Touchscreen Macbook In The Horizon?

    Apple Reconsidering Steve Jobs’s Stance: Touchscreen Macbook In The Horizon?

    In 2010, Steve Jobs, the co-founder of Apple Inc., openly criticized the concept of a touchscreen MacBook, labeling the idea as ‘ergonomically terrible.’ However, Apple, one of the few mainstream laptop producers sans a touchscreen device, appears to be reconsidering this viewpoint. Recent reports suggest that the company may introduce a revamped MacBook with a touchscreen feature by late 2026 or early 2027.

    The Gospel of Steve Jobs vs. Financial Pragmatism

    The era of Steve Jobs, characterized by strong personal viewpoints and bold product design, is long gone. Today, Apple’s primary motivation in producing new devices and features is financial viability. While this might contradict Jobs’s initial perspective, it isn’t surprising to see the company considering the adoption of touchscreen technology in the MacBook lineup. After all, Jobs had once dismissed the idea of large-screen smartphones, yet Apple’s 6.9-inch iPhone 17 Pro Max is now a bestseller.

    The Touchscreen Debate

    Steve Jobs’s argument against touch surfaces being vertical, which explains his preference for trackpads over touchscreens, has largely stood the test of time. The past decade and a half have seen other laptop manufacturers experimenting with touchscreen technology, with varying degrees of success.

    Using a touchscreen on a laptop often proves to be awkward, with the need to reach over the keyboard making the experience uncomfortable and not particularly enhancing the user experience. In the early 2010s, when Windows laptops had subpar trackpads, touchscreens provided a much-needed alternative. However, this scenario is increasingly rare today as many of Apple’s competitors have caught up, and their laptop trackpads are no longer deficient in comparison to Apple’s.

    The Case for Convertible Devices

    Convertible laptops such as Lenovo’s Yoga series, which transition into a tablet-like form, are exceptions to the argument against laptop touchscreens. When the laptop transforms into a ‘tablet,’ the touchscreen becomes a primary mode of interaction, similar to an iPad or a Galaxy Tab. The introduction of a touchscreen makes sense in these devices as they differ fundamentally from traditional laptops.

    Questions & Answers

    What was Steve Jobs’s viewpoint on touchscreen MacBooks?
    Steve Jobs was strongly against the concept of a touchscreen MacBook. He considered the idea to be ‘ergonomically terrible’ and stated that touch surfaces don’t want to be vertical.

    Is Apple planning to release a touchscreen MacBook?
    Based on recent reports, Apple is said to be considering the release of redesigned MacBooks with touchscreen features by late 2026 or early 2027.

    What has been the experience with touchscreen laptops so far?
    The experience with touchscreen laptops has been mixed. While they provided a valuable alternative when laptop trackpads were inefficient, the need to reach over the keyboard to use the touchscreen often makes the experience awkward and does not significantly enhance the user experience. However, touchscreen technology proves useful in convertible devices that can transition into a tablet-like form.

  • Apple wants to make MacBook lids stronger and safer

    Apple wants to make MacBook lids stronger and safer

    Ever since Apple silicon elevated the MacBook lineup from just pretty laptops to actually very powerful ones they have become a fan favorite of the industry. Since then the MacBook has seen marginal performance upgrades each year but Apple is now considering improving another aspect of its laptops: the lids.

    The MacBook Air and MacBook Pro make use of magnets in their lids to detect when it is closed or open and to keep it closed securely when it’s the former. Apple has filed a patent that alleges that these magnets produce stray magnetic fields even when not in use. The company says that these magnetic fields have the potential to damage nearby items and cited credit cards as possible victims.

    Apple then goes on to describe a new magnetic system that it wants to develop for its MacBook lineup. The new proposed magnetic array will in essence be an electromagnetic system. Apple says that the magnets can be, in very simple terms, switched on or off depending on whether they are needed at the moment.

    The biggest benefit seems to be that the magnetic array won’t produce stray magnetic fields when the MacBook lid is open. Apple may also be able to incorporate much stronger magnets to more reliably keep the lid closed without fear of damaging nearby items when the lid is open.

    The current magnetic array found in MacBook models is not really that strong that it would fry your credit card. So at first I thought this was a very unnecessary upgrade that Apple is thinking about. But the possibility of stronger magnets to keep the lid closed would definitely give the MacBook an even more premium feel.

    Many people who switch from a Windows laptop to a MacBook often mention how much more premium the latter feels. And while more expensive Windows laptops obviously feel more premium too, Apple has a reputation for classy products that it tries very hard to keep. As such the new proposed magnetic array could, in my opinion, give that reputation another slight boost.

    This is just a patent for now but it’s definitely a lot more easily achievable than so many of the more fantastical patents we see every day.

  • 15-inch MacBook Air to be launched in Vietnam in mid-July

    15-inch MacBook Air to be launched in Vietnam in mid-July

    First MacBook Air laptops with 15-inch screens will be officially sold in Vietnam in the second or third week of July at a starting price of VND32.99 million (US$1,398), some Apple authorized resellers said.

    Vietnam will be the second group of markets selling the latest laptop model of Apple.

    In the U.S. market, 15-inch MacBook Air laptops were pre-ordered right after its launching ceremony on June 6 and delivered to users one week later.

    15-inch MacBook Air is like the enlarged 13-inch version with no design changes. But many people has been waiting for this model because it is Apple’s only thin and light laptop with a large screen and good prices.

    Four configuration versions of 15-inch MacBook Air will be sold in Vietnam, with the 8-GB RAM, 256-GB memory version costing VND32.99 million, and the 512- GB memory version costing VND37.99 million.

    The device is available in four colors: blue, black, silver, gray and gold.

  • MacBook Air 15 sold for $1,400 in Vietnam

    MacBook Air 15 sold for $1,400 in Vietnam

    MacBook Air 15 M2 2023 is sold for VND32.9 million (US$1,394) for internal memory of 256 GB on Apple Store Vietnam.

    Apple Store Vietnam and local electronics retailers have also announced selling prices of MacBook Studio Ultra and Mac Pro 2023 at VND109 million and VND194 million or more, respectively.

    The prices were announced right after Apple unveiled new devices at the 2023 Apple Worldwide Developers Conference in California on Tuesday morning (Vietnamese time).

    The most advanced Mac Pro 2023 is sold on Apple Store Online Vietnam for VND306.5 million

    Selling prices at local electronics chain Di Dong Viet are similar to those at Apple Store Online Vietnam; and those at FPT Shop are VND100,000 lower, and those at Hoang Ha Mobile VND1 million lower than those at Apple Store Online Vietnam.

    According to Tuan Minh, manager of Hoang Ha Mobile, the 15-inch MacBook Air M2 is attracting attention thanks to its large screen, and it is suitable to people who like compact devices, large screens for entertainment and basic tasks with at a reasonable price.

    Nguyen The Kha, mobile telecommunications division director at FPT Shop, said Apple’s new devices are expected to reach Vietnamese users in early July.

    Local retailers can deliver Apple devices within one hour, change faulty products within 30 days, and offer direct support on technical issues and warranty, the services have not been provided yet by Apple Store Online Vietnam, he said.

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  • Poor demand drags MacBook prices down

    Poor demand drags MacBook prices down

    Apple’s MacBook Pro laptops have seen their prices tumble by tens of millions of dong (VND1 million = $42.6) in the two months amid underwhelming demand.

    Quy Thien, a video editor, said when the MacBook Pro 16-inch was released in Vietnam at the end of March, he ordered a high-end model with an M2 Max chip, 96 GB RAM, and 4 TB storage for VND149 million (US$6,400).

    But Apple dealers told him the model was not available, but would arrive in two months. When his device arrived, he checked the prices and found it had fallen to VND133 million.

    “In two months, I lost VND16 million when I hadn’t even received my device,” he said.

    A retailer explained that the MacBook Pro is a niche product due to its high price. Dealers do not stock some high-end models, and users have to order and wait for six to 12 weeks. Thus, early buyers got a bad break since prices started to fall as they waited, he said. Even the standard version has become cheaper.

    At the time of launch the 14-inch version with 16 GB RAM, 512 GB storage and an M2 Pro chip cost VND52.9 million, and the 16-inch version cost VND65.9 million. If they had M2 Max chips, the prices were VND81.9 million and VND92.9 million.

    In the next two months retailers slashed the prices of the 14-inch model by VND5 million if it had an M2 Pro chip and VND8 million if it had an M2 Max chip.

    VND million (VND1 million = $42.63)MacBook pricesMarchMayMacBook Pro 14 inch M2 ProMacBook Pro 14 inch M2 MaxMacBook Pro 16 inch M2 ProMacBook Pro 16 inch M2 Max0255075100

    However, it has not worked and sales have not picked up, and the MacBook Pro only accounts for 2-3% of total laptop sales.

    Hoang Ha Mobile said the high prices are the biggest dampener of demand.

    Other Apple laptops have also become cheaper.

    The MacBook Air M1, which used to be the best-selling laptop in Vietnam, currently costs VND17.9 million, VND11 million down since its launch in January 2021.

    The MacBook Air M2’s prices have fluctuated. At the end of April its price briefly went down from VND28 million to VND25.9 million before climbing back up at the beginning of May.

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  • MacBook Air M2 laptop price falls then rises

    MacBook Air M2 laptop price falls then rises

    The retail price of the MacBook Air M2 laptop dropped by VND2.1-3 million (US$89-127) to VND25 million in April and has risen back to VND28 million in May.

    The manager of an Apple distributor in Vietnam said retailers might have hiked the price because currently Air M2 inventories in the country are very low.

    “If the demand … surges retailers … will have to wait for eight to 10 weeks for the product to be shipped to Vietnam.”

    Large retailers such as The Gioi Di Dong, FPT Shop, and CellPhoneS had sold the Air M2 with the minimum configuration, the best-selling version, for VND28 million in early April, VND25.9 million in mid-April, and VND25 million in late April.

    The laptop first sold for VND32.9 million when launched in Vietnam in July last year, but its price declined sharply partly due to competition among retailers to get a larger share of the pie, according to a manager of a The Gioi Di Dong store.

    “Prices of technological products always tend to decrease gradually after launch. However, the continuous up and down with a large amplitude of several million dong in a short period of time shows the instability of the market,” said Nguyen Van Cong, a veteran trader of Apple products.

    According to the manager of The Gioi Di Dong, the big discount of MacBook Air M2 is part of its price competition campaign.

    In early April, during a shareholder meeting, Nguyen Duc Tai, Chairman of The Gioi Di Dong (Mobile World), said: “The price at The Gioi Di Dong was sometimes million dong higher than that at other retailers. However, this phenomenon will stop. We will not let the price difference become an advantage for competitors.”

    Refusing to give the reason for their price fluctuations, managers of CellPhoneS and FPT Shop said MacBook prices have been “actively updated by the stores based on business strategies and the general situation in the market.”

    In fact, the top three Apple device retailers in Vietnam, The Gioi Di Dong, FPT Shop and CellPhoneS, have changed the laptop’s prices frequently in recent days and the prices are almost the same.

    At some Apple stores, it is one of the two best-selling laptops along with the MacBook Air with the M1 chip.

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  • MacBook prices drop with new model launch

    MacBook prices drop with new model launch

    The price of MacBook Pro 2021 laptops has decreased by 11.2% leading into the launch of the new model next week.

    Apple authorized resellers in Vietnam said a MacBook Pro 2021 sells for VND42.9 million ($1,813), down 11.2% since January and 18.9% from December 2021 when it was officially distributed in the Vietnamese market for the first time.

    They will start selling MacBook Pro 2023 laptops and Mac minis in mid-March.

    According to Pham Tuan Anh, a manager of electronics retail chain ShopDunk, the MacBook Pro 2021’s market share is less than 10% at the moment.

    Consumers with over VND40 million to spend on a computer tend to buy MacBook Pros or Airmodels running the M2 chip with higher configurations, instead of picking up a 2021 MacBook Pro without the M2 chip.

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  • Apple to start MacBook production in Vietnam next year

    Apple to start MacBook production in Vietnam next year

    Apple’s MacBooks are set to be produced in Vietnam starting next year for the first time, the latest of several Apple products that will be shifted to the country.

    Apple has tapped its top supplier, Taiwan’s Foxconn, to start making the laptops in Vietnam as early as around May, sources said.

    “After the MacBook production shifts, all of Apple’s flagship products basically will have one more production location beyond China … iPhones in India and MacBooks, the Apple Watch and iPads in Vietnam,” one person with direct knowledge of the matter said.

    “What Apple wants now is an ‘out of China’ option for at least part of production for all of its products.”

    The company has been working on plans to move some MacBook manufacturing to Vietnam for nearly two years, and has set up a test production line in the country, the Japanese news outlet reported earlier.

    Vietnam will make 65% of Apple wireless AirPods by 2025 as the U.S. tech giant continues to shift its production away from China, JP Morgan analysts have forecast.

    The country would also reportedly account for 20% of iPad and Apple Watch output and 5% of MacBook.

    Foxconn, a key supplier, in August leased 50.5 hectares of land in Bac Giang Province and plans to build a $300-million factory there, employing 30,000 workers.

    Vietnam has been one of the fastest growing markets for Apple products this year, with especially high demand for iPhones.

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  • MacBook Air M1 prices up by over $40 in Vietnam

    MacBook Air M1 prices up by over $40 in Vietnam

    Apple authorized resellers in Vietnam have increased the prices of MacBook Air M1 by over VND1 million (more than $40) against late July when promotion campaigns were on.

    In late July, the laptop’s selling prices were VND21.7-23 million, lower than the list price in the U.S. market.

    Now, the selling prices are VND23-24 million, with VND22.8 million the lowest price offered by some resellers.

    An unnamed manager with a reseller told local media that demand for electronic devices, including laptops and tablets had decreased several months ago, so Apple, distributors and resellers launched big promotion campaigns. Prices of MacBook Air M1 in July fell to the lowest.

    Retailers including CellphoneS and Di Dong Viet said MacBook Air M1 prices have climbed up now because of the dollar value rising against the dong and the promotion campaigns coming to an end. However, purchasing power remains high in the market, they said.

    “Among our total sales of MacBook models, MacBook Air M1 accounts for some 40%,” said the manager of a The Gioi Di Dong store who did not want to be named. CellphoneS has reported the corresponding figure at 30-35%.

    At ShopDunk, MacBook Air M1 sales over the past month rose 20% against July. “It is the cheapest among Mac models, while its M1 chip’s performance and efficiency is still very good,” said manager Pham Tuan Anh.

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  • Apple suppliers to make Apple Watch and MacBook in Vietnam

    Apple suppliers to make Apple Watch and MacBook in Vietnam

    Apple’s suppliers are in talks to produce Apple Watch and MacBook in Vietnam for the first time, Nikkei Asia reported on Tuesday, citing people familiar with the matter.

    Apple’s Chinese suppliers Luxshare Precision Industry and iPhone assembler Foxconn have started test production of Apple Watch and MacBook in Northern Vietnam, the report added.

    Apple has been shifting some areas of iPhone production from China to other markets, including India, where it started manufacturing iPhone 13 this year, and is also planning to assemble iPad tablets.

    India, the world’s second-biggest smartphone market, along with countries such as Mexico and Vietnam are becoming increasingly important to contract manufacturers supplying American brands, as they try to diversify production away from China.

    Apple, Foxconn and Luxshare Precision did not immediately respond to a Reuters request for comment.

    Last week, Taiwanese contract manufacturer Foxconn gave a cautious outlook for the current quarter after posting results that exceeded expectations, citing slowing smartphone demand after a pandemic-fuelled boom.

    Like other global manufacturers, Foxconn – formally called Hon Hai Precision Industry Co Ltd – has dealt with a severe shortage of chips that hurt production, as bottlenecks from the pandemic lingered and the Ukraine war further strained logistical channels.

  • Qualcomm’s Apple M1-rivalling silicon arriving in 2023

    Qualcomm’s Apple M1-rivalling silicon arriving in 2023

    Qualcomm revealed plans to bring to the market an Apple M1-beating chip by 2023 during its 2021 investor conference.

    The processor will be based on technology from Nuvia, a chip startup that was founded by ex-Apple engineers who had worked on Apple A and M series chips and was bought by Qualcomm earlier this year. We can hope to see Nuvia’s tech in smartphone chips too at some point in the future.

    For now, the focus is on the next generation of Arm-based processors which Qualcomm claims will set a new performance benchmark for Windows PCs. The chip will offer industry-leading sustained performance and battery life, or so Qualcomm hopes. It will feature Arm-based CPU cores, Adreno graphics, 5G modem, Hexagon DSPs, and Spectra imaging core.

    If you look at what Apple has done with the M-series, on the upper hand it even has the performance of an [Nvidia] RTX 3080 at discrete graphics.” – Qualcomm CEO Cristiano Amon.

    Qualcomm will also work on improving its Adreno GPUs to offer a desktop-like gaming experience on PCs. The chip giant is aiming to have samples out for customers in around nine months, with the official launch planned for 2023.

    Whether the chip will be able to live up to the claims or see the same fate as the Qualcomm Snapdragon 8cx and Microsoft Surface SQ2 PC chips that failed to make a mark remains to be seen.

    Apple meanwhile has already launched even more powerful versions of the M1 chip, the M1 Pro and M1 Max, and is now reportedly working on the third-generation of Mac chips that will likely offer significantly better CPU performance than the latest chips. The M series chip power a slate of new Apple products, including some of the best tablets that money can buy.

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  • Learning to Manage MacBook Storage Efficiently

    Learning to Manage MacBook Storage Efficiently

    The problem of MacBook storage is quite common, especially if you make a switch from Windows to macOS. It takes a while to learn how to manage the drive’s storage efficiently. 

    When less than 15 percent of total disk storage is free, the computer is bound to have performance problems. 

    A good Mac storage management strategy revolves around knowing certain methods to free up the laptop’s drive space. And the more information you know about cleaning up your Mac, the better off you will be.

    Let’s take a look at some of the most effective ways to keep enough free space on the MacBooks hard drive.

    Use Cleanup Software for Temporary Junk

    Starting with temporary junk files like app extensions, plugins, and caches is a good approach. The system creates temporary data constantly, and files accumulate quite fast.

    For example, the purpose of cache is to speed up certain processes by storing data in the computer memory. The files are useful for the most part. However, when there are too many, they put a strain on the overall MacBook performance. 

    Therefore, removing unnecessary junk data will free up HDD space and leave fewer files to process for the system.

    Since getting rid of temporary data manually is too much of a hassle, we recommend getting a cleanup utility tool. Such software simplifies the process since you can select the files you want to delete from the MacBook and let the cleanup tool do its work. 

    Change Default Download Location

    Changing the default location for the downloads could come in handy as well. Some people tend to forget the downloads folder and not bother checking it. Meanwhile, the number of downloads continues to grow and takes precious computer drive space.

    By making the MacBook’s desktop the default downloaded file location, you would notice these files right away and delete them when they become useless. Even a new MacBook will start to underperform if its desktop is cluttered, so you will not want to keep files on the desktop. If anything, you will want to keep the desktop clutter-free.

    Get Rid of Useless Apps

    Old applications are another item on the list. There is no point in keeping apps you no longer use. Besides, some applications come with extra files that may take more space on the computer than you expect. For instance, language support for 50 or even more languages. 

    Check the list of Mac applications and figure out which of them you can remove from the computer. And in case you ever need an app you remove again, there is an option to download and install it later.

    Remove Files From Mac Permanently

    Be it applications, downloads, media, or other files, it is important to remember that you need to remove them from the MacBook permanently. Otherwise, the total free storage of the hard drive will not change.

    If you use the Trash Bin and drag files in it to remove them permanently, remember to click the “Empty the Trash” button. 

    You could also stick to a keyboard shortcut that removes files from the MacBook permanently. Select file(s) and press Option + Command + Delete. A pop-up will ask you to confirm if you want to delete files permanently. Click the confirmation button, and the files will disappear from the laptop.

    Use Streaming Platforms

    For some MacBook users, media files are the biggest issue. They hoard movies and TV shows with the intent to watch them later but never find the time. A similar thing can be said about music. Hundreds if not thousands of tracks might be nice to have on a computer, but there are better, more efficient methods to listen to music. And these methods do not involve cluttering the MacBook’s drive.

    You should use services like Spotify and YouTube to listen to music. As for movies and TV shows, streaming platforms are the go-to option. Netflix, Disney+, and Hulu are some of the most popular streaming services currently. 

    The services cost money, but paying a few dollars to have a convenient way to consume media is worth it. Not to mention how much it can help with the MacBook’s storage.

    Stick to Cloud Storage

    iCloud offers five gigabytes of free storage. Mac owners can transfer files there and access them not just from the MacBook but also from their iPhone or iPad by syncing these devices with the iCloud account. 

    In case five gigabytes are not enough, upgrade the plan for additional storage. 50GB cost a dollar, 200GB – three dollars, and 2TB – ten dollars per month.

    Invest in an External HDD

    Similar to cloud storage, an external hard drive provides an alternative location to keep your Mac’s files. An HDD costs about 30 dollars, meaning that it should not be that much of an expensive investment.

    Besides having a different place to keep computer files, you can also combine an external hard drive with Time Machine and create data backups.

     

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  • Apple Japan opens its first store in Kawasaki

    Apple Japan opens its first store in Kawasaki

    Apple Japan has opened its 10th store – in Kawasaki.

    The new single-story outlet in Lazona Kawasaki Plaza features the brand’s distinctive all-glass front as well as a large video wall, a forum, and avenue shelving.

    The venue will be used as a family learning hub via the store’s Today at Apple educational sessions, using products in store for educational purposes in AR, coding, photography and music-making, amongst others.

    The Kawasaki venue is differentiated from other more spectacular Apple Japan stores for being more community-focused.

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  • Apple sales report doesn’t look good

    Apple sales report doesn’t look good

    Apple has been quick to point out the record-breaking revenue numbers for its first quarter.

    The Cupertino-based company reported first-quarter sales of US$88.3 billion and a record quarterly profit for the final three months of last year of $20.1 billion.

    As much as this is praiseworthy, it also masks some more worrying trends.

    First is the 1 per cent fall in unit sales of the iPhone. Although revenue for phones increased by 13 per cent, this was a function of higher prices rather than increased volume. On the surface, this may not seem like a problem, but in our view, it indicates that Apple is, once again, struggling to persuade consumers to upgrade or switch to new devices. This slowing of the upgrade cycle will likely have an impact on phone revenue in future quarters.

    Moreover, the slowdown in iPhone sales is emblematic of Apple’s inability to come up with meaningful and valuable innovations that wow consumers. Even the iPhone X is an incremental product that lacks the excitement and newness earlier models brought to market. Apple is fortunate in having a strong base of fans and many consumers who are bought into its ecosystem of services; but without device innovation, even this may prove insufficient to maintain market share in the face of rising competition.

    Mac sales disappoint

    The second area of disappointment comes from Mac sales where both volume and revenue slipped over the prior year. Admittedly, Apple is up against a comparative from last year when its new MacBooks Pros were gaining ground, but even so, this also underlines a dearth of serious innovation in the home and professional computing segments.

    We also believe that lower volumes, and the fact that Apple’s products were not at the top of everyone’s Christmas lists, put a dampener on service growth. Last quarter this segment grew by 34 per cent and by 22 per cent in the quarter before that. Over this period, the increase was a much more modest 18 per cent. Arguably, the holiday period should be a bumper time for Apple subscriptions; that it wasn’t is concerning – not least because Apple needs income from services to make up for softness in product sales.

    That Apple’s HomePod wasn’t available in time for the holidays was a misstep, not least because it could have helped boost service revenue. Our data show smart speakers and smart home devices were popular gifting and self-purchase items over November and December – with both Amazon and Google growing their market shares. Although Apple will point out its product is superior to rivals’ efforts, it is a latecomer to the party, and we believe its potential sales will be crimped as a result.

    For all of these challenges, Apple remains a solid and financially successful company. Indeed, its profits increased over the period. However, a lack of serious and significant innovation means it runs the risk of diluting future earnings. Apple thrives off serving a mass market; a move to providing more expensive items to fewer people will ultimately prove harmful to the bottom line.

    In essence, we believe that the clear blue water that once existed between Apple and rivals is much diminished. The company has time to reopen the gap, but to do so, it needs to pull something new and unique out of its hat sooner, rather than later.

    -Neil Saunders-