Apple is in the middle of a supercycle for everything it sells, and the Mac and iPad are on a tear

Apple's CEO, Tim Cook, laughs as Lana Del Rey (with iPad) takes pictures on the 30th October 2018 in New York City during a start-up event at the Brooklyn Academy.

KEY POINTS

• In its recent quarterly earnings report on Wednesday, Apple reported enormous growth in Mac and iPad revenue.

• The two segments demonstrate that Apple is at the center of a super-cycle of sales, not just iPhone and digital services but almost all of its product categories.

• The momentum will last through 2021 already indicates.

Wednesday's blowout was another quarter of Apple's, which showed sales growth of 54 percent and a $90 billion return on share.

But, while each quarter typically speaks of the success of Apple's iPhones and services, the crazy growth announced by the company for Mac computers and iPads cannot be ignored.

Apple is not only at the center of a recent iPhone sales supercycle. It is for everything in the center of a supercycle.

Look at the results of Mac and iPad in the second quarter of the fiscal year:

• Mac revenue: $9.10 billion, up 70.1% year over year

• iPad Revenue: $7.80 billion, up 78.9% year over year

These are just wild figures for two types of products that have languished in recent years. Prior to 2020, Apple placed its PC production on the back burner in support of concentrating on its benefit motor: the iPhone.

But everything changed last year as the Mac and iPad sales grew perfectly: the launch of Apple's own computer chip, the M1, and the rise of demand for appliances that allow people to work from home.

The M1 also played an important role in the sales boom when the pandemic aspect of the equation was evident. CEO Tim Cook credited the M1 chip for fueling the growth Wednesday in a profit call for the business, especially as Apple has demonstrated that the chip can perform as well or better than the Intel chips used for its computers.

Apple recently added the M1 to a new model iPad Pro which will be available in May on Friday and onboard ships. The iPad is as strong as the Mac. This week, Apple managers told TechCrunch that they intend to add all that power to the iPad to boost a new software development wave to make the computer even more useful for productivity.

If this works, the iPad Pro is a viable option for those who want a tablet instead of a laptop.

And there are additional reasons for optimism on the Mac later in this year, as Apple is supposed to upgrade its Mac laptops and even use the upcoming iteration of its M series chip.

All this excitement about Mac and iPad is just a warning: the chip scarcity.

On a profit call on Wednesday, Cook and his team admitted that some components needed by Apple's gadgets may be supply constraints. But they were hopeful that they could deal with the problems.

And remember: Cook made its name as a supply chain and logistics genius in the business world.

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Source- CNBC