Apple Inc.’s (NASDAQ:AAPL) professional computer users have been waiting for the company to release a new version of its most powerful desktop computer. The current Mac Pro made its debut in 2013 and is far from competitive. However, they’re going to be waiting a while longer yet. Apple confirmed that a new Mac Pro is in the pipeline.
But yesterday Apple announced that it won’t be released until 2019. In the meantime, there’s the iMac Pro, released in December.
Apple is no longer a “computer” company — it changed its name from Apple Computer back in 2007. But Mac PCs still account for a considerable chunk of its sales. Last quarter, the Mac division was the third largest by revenue, behind the iPhone and Services. At $6.9 billion for Q1, it’s safe to say that Mac sales remain an important factor in AAPL stock valuation.
New Mac Pro Desperately Needed
While the MacBook is a favorite of image-conscious consumers, the company has always had its roots in professional users. That’s why there was such a fuss over updating its MacBook Pro laptops, which finally received a new design in late 2016.
The Mac Pro, the powerhouse desktop PC used for high demand tasks like 3D animation, was left behind, however. So the Mac Pro isn’t much of a powerhouse these days. First introduced in 2013, Apple’s desktop workstation looks stylish and starts at $2,999. However, its components are now outdated and that cool looking form factor is difficult to upgrade.
In the meantime, the competitors are circling. Microsoft Corporation (NASDAQ:MSFT) openly went after Apple’s core creative professional users with the Surface Studio all-in-one PC. The danger for Apple is that if these pros start jumping ship, they won’t come back. Their shops might also ditch the MacBook Pro to standardize on Windows. And consumers might follow, cutting into MacBook sales. Not good for AAPL stock…
Mac Pro Not Coming Until 2019
So a new Mac Pro is desperately needed, and Apple has been telling its professional users it will not abandon them. Last March, CEO Tim Cook emphasized the importance of the company’s core professional users and remaining a leader in the creative space. Then in April, a rare roundtable was held between senior Apple executives and journalists.
Apple promised an all-new iMac Pro and Mac Pro, with the iMac Pro pledged for late 2017.
That iMac Pro made it for 2017, and the expectation was that the new Mac Pro would follow this year. But yesterday, Apple executives sat down with TechCrunch and delivered the news that the new Mac Pro is not a 2018 release:
“We want to be transparent and communicate openly with our pro community, so we want them to know that the Mac Pro is a 2019 product. It’s not something for this year.”
That’s not the sort of news that moves AAPL stock either way, but it’s important to that core professional user base that helps to drive overall Mac sales. And while it’s disappointing on one hand, it’s not all bad news.
Apple Taking Its Time to Get It Right
One of the key problems with the 2013 Mac Pro is a design that prioritizes style over practicality. The black cylinder is visually stunning and when released, it was incredibly powerful. But the design was limiting for the intended demographic and now its components are way behind the competition.
In speaking to TechCrunch, Apple representatives noted that a big reason for the 2019 release date for the new Mac Pro is the company is taking the time to work with its customers. Apple is studying how they use their computers and creating a “Workflow” team to ensure they get the Mac Pro right this time.
That’s good news, even if it means waiting another year. And as Apple has pointed out, the new iMac Pro will cover the needs of many of those core professional users. Knowing that the new Mac Pro won’t be arriving until 2019, they can make the decision to buy an iMac Pro now, or to hold off.
That being said, now that the iMac Pro is available and there’s a release date for the new Mac Pro, don’t expect Apple to be selling many units of the existing Mac Pro this year…
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
