NPD Data: Strong Mac Sales in April, Some iPod Cannibalization by iPad?

140954 mac lineup small

Fortune reports on a new research note from analyst Gene Munster at Piper Jaffray, who examined new April U.S. retail sales data for Apple from NPD and found very strong year-over-year Mac growth and a somewhat larger than predicted drop in iPod sales. The combination suggests that the iPad may be having more of a cannibalization effect on the iPod than on Macs, suggesting possible upside to Apple's financial performance as consumers are "upsold" to the iPad rather than holding back from Mac purchases.

"April NPD data gives us the first sign of the degree to which the iPad cannibalizes iPod or Mac sales," he writes. "From the early NPD data, it appears that the iPad has a minimal cannibalization impact on Mac sales, and could be slightly cannibalizing iPod sales. Given the ASP (4x) and margin profile of the iPad, we see this as a net positive for Apple's business."

As noted by All Things Digital, Munster's report suggests that the cannibalization of iPods rather than Macs is a direct result of Apple's positioning of the iPad and the capabilities offered by it. Munster says:

We believe in the long run Mac cannibalization will exist, but will be minimal. Apple has successfully limited the iPad functionality to primarily content consumption, vs. content creation on a Mac. And relative to the iPod, the physical size of an iPad provides a meaningfully different value proposition (portability vs. screen size).

NPD's data shows U.S. Mac sales up 39% year-over-year for the month of April, well ahead of the 19% consensus increase predicted by Wall Street analysts. According to Munster, that projects out to total sales of a strong 3.1-3.2 million Macs for the current quarter based on Apple's sales patterns.

The iPod, on the other hand, saw a 17% decline in unit sales year-over-year, significantly larger than the 9% decline predicted by the Street. Still, Apple may be on track to sell 9-10 million iPods this quarter, a healthy number given the impact of the iPad.

iPad cannibalization of other Apple product lines has been a focus for research analysts looking to understand the effect of the company's new device on its bottom line. Research from Morgan Stanley published earlier this month similarly showed a significant potential hit to the iPod, with 41% of surveyed customers planning to purchase an iPad saying they were doing so instead of purchasing an iPod touch. The same survey showed 24% and 14% of planned iPad customers holding off from buying Mac notebooks and desktops respectively, with another 20% (notebook) and 13% (desktop) forgoing non-Apple computers.

Popular Stories

iOS 18

iOS 18.4 Will Include These New Features for Your iPhone

Wednesday February 5, 2025 7:15 am PST by
iOS 18.3 was released last month, so the first iOS 18.4 beta should be coming soon. iOS 18.4 is expected to be a more substantial update for the iPhone, with several new features and changes related to Apple Intelligence and beyond. Apple's website suggests that iOS 18.4 will be released in April, following beta testing. Below, we outline what to expect from the update so far. Apple...
iCloud General Feature Redux

iPhone Users Who Pay for iCloud Storage Receive an All-New Perk

Thursday February 6, 2025 11:21 am PST by
If you pay for iCloud storage on your iPhone, Apple has a new perk for you, at no additional cost. iCloud+ is the official name for Apple's paid iCloud storage plans, which range from 50GB for $0.99 per month to 12TB for $59.99 per month in the United States. iCloud+ plans already come with multiple perks for free, such as Hide My Email and HomeKit Secure Video, and now there is another one...
iPhone SE 4 Single Camera Thumb

iPhone SE 4 Launching as Soon as Next Week

Thursday February 6, 2025 3:30 pm PST by
Apple's next-generation iPhone SE could debut as soon as next week with a launch to follow later in February, reports Bloomberg's Mark Gurman. Apple isn't expected to hold an event for the iPhone SE 4, and will instead unveil the device through a press release. The iPhone SE 4 is expected to have an iPhone 14-style design, with Apple eliminating the thick bezels and Touch ID Home button of...
iOS 18

iOS 18.3.1 Update Coming Soon for iPhones

Thursday February 6, 2025 7:31 am PST by
Apple is internally testing iOS 18.3.1 for iPhones, according to our website's analytics logs, which have been a consistently reliable indicator of upcoming iOS versions. The software update should be released within the next few weeks. iOS 18.3.1 should be a minor update that addresses software bugs and/or security vulnerabilities. Apple Intelligence notification summaries for news and...
maxresdefault

An Apple TV Refresh is Coming in 2025 - Here's What You Should Know

Wednesday February 5, 2025 10:17 am PST by
Apple hasn't refreshed the Apple TV since 2022, but rumors suggest that we're finally going to get an update in 2025. We don't have a full picture of what to expect yet, but we have some hints on what's coming. Subscribe to the MacRumors YouTube channel for more videos. Updated A-Series Chip The current Apple TV 4K uses the A15 Bionic chip that was in the iPhone 13 lineup, and it's time for...
iCloud General Feature Redux

Apple Ordered by UK to Create Global iCloud Encryption Backdoor

Friday February 7, 2025 2:37 am PST by
The British government has secretly demanded that Apple give it blanket access to all encrypted user content uploaded to the cloud, reports The Washington Post. The undisclosed order is said to have been issued last month, and requires that Apple creates a back door that allows UK security officials unencumbered access to encrypted user data worldwide – an unprecedented demand not before...
Apple Leak Feature

Apple Leaker Issues Apology: 'Profound and Expensive Mistake'

Friday February 7, 2025 9:21 am PST by
Last year, we reported that Apple sued its former software engineer Andrew Aude for providing journalists with confidential information about the company's future plans, including details about the Journal app, Vision Pro headset, and more. As reported by 9to5Mac, the Superior Court of Santa Clara County on Thursday dismissed the lawsuit after Apple and Aude reached an agreement to resolve...
2007 iPhone

Apple Discontinuing This 18-Year-Old iPhone Feature

Saturday February 8, 2025 3:51 pm PST by
The end of an 18-year era is on the horizon for the iPhone. Apple reportedly plans to announce a new iPhone SE as soon as next week, and the device is expected to feature a full-screen design with Face ID, instead of a Touch ID home button. That means Apple will no longer sell any new iPhone models with a home button, for the first time since the original iPhone launched. The home button...