Apple's refreshed iMacs, unveiled April 20, come equipped with the company's
house-made M1 chip and are available in a slew of vibrant new colors.
After years of taking a back seat to the iconic iPhone, Apple Inc.'s iPads and Mac computers are back in the spotlight.
Apple on April 20 unveiled a refreshed iPad Pro and iMac equipped with the company's inaugural M1 chip and revamped capabilities. The new iPad Pro features 5G connectivity, specifically millimeter-wave spectrum, which can carry massive amounts of data at high speeds, though its shorter wavelengths prevent it from traveling long distances and penetrating certain surfaces. Apple also revealed updates to its Apple Card credit card, podcasting business, iPhone and Apple TV streaming device.
Analysts say Apple's slower-growing product segments like the iPad and Mac have a lot of runway as more people rely on the devices to remain connected amid the pandemic. Demand for iPads and Macs surged in recent quarters as the pandemic shuttered schools and workplaces worldwide and required people to work and play from home. For the just-ended period, iPad sales totaled $8.44 billion, compared to $5.98 billion a year earlier. Sales for Macs came to $8.68 billion in the just-ended quarter, up from $7.16 billion in the same period a year earlier.
By comparison, iPhone sales accounted for more than half of Apple's consolidated revenue for the just-ended period, tallying $65.60 billion, up from $55.96 billion a year earlier.
Loup Ventures managing partner Gene Munster said the addition of the M1 chip to the new iPad Pro gives the device the flexibility of being both a laptop and tablet, which should boost demand. For the new iMac, Munster expects the device's slate of vibrant colors, along with its revamped cameras, microphones and a Touch ID keyboard option, will help Apple boost margins for the entire Mac category.
Wedbush Securities analyst Daniel Ives noted that the work-from-home trend is showing no signs of abating, which spells good news for the future success of Apple's newest iPad model.
Ives estimated less than half of iPad users globally have upgraded their devices within the past year and said the new iPads on display at the April 20 event could unleash a backlog of pent-up demand. Ives maintained his "outperform" rating and $175 price target on Apple stock in an April 20 report.
The iPad Pro costs between $799 and $1,099 depending on the model and is available for preorder April 30, with in-store availability beginning in the second half of May. The new device, which comes in an 11-inch and 12.9-inch display, also includes a revamped front camera that automatically pans to more closely follow users' movements.
The iMac, starting at $1,299, has a 24-inch display and comes in seven new colors, including green, pink, orange and yellow.
Customers can buy the new iMac in any of four colors for $1,299 or in any of seven colors — and with more advanced features — for $1,499. The new Mac is available for preorder April 30 and in stock in the latter half of May.
"The ability to use color to motivate people to dollar up is a way to maintain and even raise margins," wrote Loup Ventures' Munster in a report.
Apple's new iPads and Macs join the company's MacBook Air, Mac mini and MacBook Pro in running on Apple's in-house chip design. In 2020, the company began the two-year process of replacing Intel's x86 chips in its Mac laptops and desktop computers with the M1 chip, which it designed to balance speed with efficiency.
Evercore ISI analyst Amit Daryanani wrote that he considers the integration of the M1 chip into more Apple products the biggest news from the April event, adding that the company's ability to strengthen its product lineup through vertical integration should improve product functionality and boost gross margins.
"The insourcing has clear margin benefits, but Apple appears more focused on the upside to product design and performance. This upside is clear when looking at the new iMac's compelling redesign and the compelling performance and battery life benefits on the new iPad Pro," Daryanani wrote in a note.
Also at the April 20 event, Apple unveiled a new feature called Apple Card Family, which allows the company's credit card to be used by all family members over the age of 13, as well as a subscription-based version of Apple Podcasts, which provides an ad-free listening experience and access to exclusive content.
The iPhone, the iPhone 12 and iPhone 12 mini now come in a new purple finish, with preorder availability starting April 23 and shipping April 30.
In terms of the Apple TV, the company on April 20 debuted a revamped Apple TV 4K streaming box powered by Apple's new, faster A12 bionic chip and comes with a Siri-powered remote.
Apple also unveiled its AirTag tracking device, which can be affixed to keys, handbags and backpacks to help users keep track of their various items through iPhone's Find My Network app.