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MacNarrow moat

Apple (AAPL) — moat facet

Flat on Intel chips, up 56% on Apple's own, down 27% the year after, and now winning schools with the cheapest Mac yet.

The Mac is Apple's oldest line and, in fiscal 2026, its fastest-growing one after the iPhone. It sold $37.9 billion, 7.9% of the company and up 12.5%1, with $10.8 billion of that in the September quarter, up 23.7%2.

Mac net sales by quarter ($B)7.8Q1'247.5Q27.0Q37.7Q49.0Q1'257.9Q28.0Q38.7Q48.4Q1'268.4Q210.4Q310.8Q4Apple 10-Qs and results exhibits; two consecutive record quarters on the MacBook Neo
The Mac's two best quarters ever came back to back, and still left the fiscal year 5.6% short of its FY2022 peak.

Inside it are the laptops, MacBook Air and MacBook Pro, and the desktops, iMac, Mac mini, Mac Studio and Mac Pro3, and since the March quarter the MacBook Neo4. The line is sold one machine at a time, through Apple's own stores and website and through resellers, and increasingly to schools and companies: on the June-quarter call Apple said about half of the MacBook Neo purchases by US education institutions replaced Windows and Chromebook devices, and that one Florida school district is moving 25,000 students from Windows machines to the Neo5. In a survey of 300 US chief information officers, Apple already accounted for an average of 65% of enterprise endpoints, and 96% expected their Mac fleets to grow6.

The modern history of the line turns on one decision. In November 2020 Apple began moving the Mac from Intel processors to its own chips, starting with the M1 in the MacBook Air, the 13-inch MacBook Pro and the Mac mini7. Revenue had been about $25 billion a year for most of the decade, $25.5 billion in fiscal 2015 and $25.7 billion in fiscal 201989, and rose 11% in fiscal 2020 on higher sales of the MacBook Pro10; it then rose 23% in fiscal 2021 and 14% in fiscal 2022, to $40.2 billion11, 56% above fiscal 2019. The argument that the chips did it is made on Custom Chip Advantage.

Then came the steepest one-year fall of any Apple line in the decade on the chart. Mac sales fell 27%, or $10.8 billion, in fiscal 2023, on lower sales of laptops12. The filing gives no more reason than that; the likeliest reading is that many buyers who moved to Apple silicon in 2021 and 2022 had no need to buy again. The line recovered slowly, 2% in fiscal 2024 and 12% in fiscal 202513, then 12.5% in fiscal 2026, which leaves it 5.6% below its fiscal 2022 peak against 16% a year ago14. From fiscal 2019 to fiscal 2026 it compounded at about 5.7% a year — no longer the slowest of Apple's five lines, because the iPad now is15.

Unit data, available until fiscal 2018, show the line was never a volume business: Apple sold 16.3 million Macs in fiscal 2013 and 18.2 million in fiscal 2018, at $1,315 and $1,400 of revenue per machine16. The Mac has also become a smaller part of Apple: 10.9% of net sales in fiscal 2015 and 7.9% in fiscal 202617. What the Mac earns is not disclosed either. It sits inside a products gross margin of 39.3% in fiscal 202618, and because Apple designs the chip it keeps a margin a PC maker buying processors would pay away; how much, the filings do not say.

Fiscal 2026 is the recovery the line had been missing. Sales fell in the December quarter, to $8.4 billion from $9.0 billion, on lower sales of laptops and desktops19, then rose 6% in March and 29% in June2021, and Apple called the June quarter its best ever for customers new to the Mac and for upgraders, despite significant supply constraints, adding that IDC's figures showed it gaining share globally22. September added another 23.7%, to $10.8 billion, on demand for the MacBook Neo and the MacBook Pro26. The line-up behind it is fresh: the MacBook Pro moved to the M5 chip in October 202523, and the Neo followed in the spring. The risk to the outlook is cost rather than demand: Apple raised Mac prices in June because of the memory shortage24, and Tim Cook told CNBC after the June-quarter results that memory prices were choking and that Apple would have to look at alternatives25. A price rise on a machine people replace every few years is easier to postpone than one on a phone.

The MacBook Neo is the new variable. It widens the way into the ecosystem, since a student with a Neo is often an iPhone owner with a second Apple device, and it is winning places in schools that bought Windows and Chromebook machines. The test was fiscal 2026 revenue against the $40.2 billion of fiscal 2022, and the Mac missed it — $37.9 billion, 5.6% short, after two years of double-digit growth27. It came close enough that fiscal 2027 should settle it, except that the binding constraint has moved: Apple expects December-quarter supply of Macs and iPads to be limited by memory, because demand ran higher than it had planned for28. A line that cannot be supplied is a better problem than a line nobody wants. It is still a reason the record has to wait.

Moat trajectory: Widening

Up 29% in the June 2026 quarter, a record for that quarter, with the MacBook Neo taking school purchases from Windows and Chromebook machines and IDC reporting share gains; still 16% below the fiscal 2022 peak.

The number that tests this moat
Reported
Mac net sales, fiscal year
$37,929M in FY2026, +12.5%

Two years of double-digit growth have brought the Mac to 5.6% below its FY2022 peak, against 16% a year ago. Clearing $40.2 billion would show the MacBook Neo opened a new market rather than refreshed an old one — and Apple has said December supply will be limited by memory, so the test slips again.

Source: Apple Form 8-K exhibit 99.1, Q4 FY2026 results ↗
References
  1. Moat Explorer calcMac net sales of $37.9 billion in FY2026, 7.9% of the company and up 12.5%.
    Moat Explorer calculation from Apple's Q4 FY2026 results exhibit (growth rates, category and segment shares, products and Services gross margins, gross-profit shares and compound growth rates are all derived from the reported dollar figures) — FY2026 · publ. 3 November 2026 · source ↗
    Method: Shares and margins are the reported dollar lines divided into one another.
  2. Moat Explorer calcMac net sales of $10,792M in the September quarter, up 23.7%.
    Moat Explorer calculation from Apple's Q4 FY2026 results exhibit (growth rates, category and segment shares, products and Services gross margins, gross-profit shares and compound growth rates are all derived from the reported dollar figures) — FY2026 · publ. 3 November 2026 · source ↗
    Method: Shares and margins are the reported dollar lines divided into one another.
  3. ReportedInside it are the laptops, MacBook Air and MacBook Pro, and the desktops, iMac, Mac mini, Mac Studio and Mac Pro, and since the March quarter the MacBook Neo.
    Apple Form 10-K, FY2025, Item 1 - the iPhone, Mac, iPad and Wearables, Home and Accessories lines (wearables include smartwatches, wireless headphones and spatial computers); Services: advertising incl. third-party licensing arrangements, AppleCare, cloud services, digital content incl. the App Store and subscription services, payment services; reportable segments are geographic; direct and indirect channels 40% and 60% of net sales — FY2025 · publ. 31 October 2025 · source ↗
  4. ReportedInside it are the laptops, MacBook Air and MacBook Pro, and the desktops, iMac, Mac mini, Mac Studio and Mac Pro, and since the March quarter the MacBook Neo.
    Apple Q2 FY2026 results release (8-K, exhibit 99.1) - the iPhone 17e, the M4-powered iPad Air and the launch of MacBook Neo — Q2 FY2026 · publ. 30 April 2026 · source ↗
  5. ReportedThe line is sold one machine at a time, through Apple's own stores and website and through resellers, and increasingly to schools and companies: on the June-quarter call Apple said about half of the MacBook Neo purchases by US education institutions replaced Windows and Chromebook devices, and that one Florida school district is moving 25,000 students from Windows machines to the Neo.
    MacRumors live coverage of Apple's Q3 FY2026 call (30 July 2026) — installed base above 2.5 billion; product margin 40.1% with a 2.5-point tariff-refund impact; September-quarter guidance: revenue growth of 9-11%, gross margin 47-48% with about 1% benefit from tariff refunds; Apple introduced a neural engine in 2017 — Q3 FY2026 call · publ. 30 July 2026 · source ↗
  6. Third-party estimateIn a survey of 300 US chief information officers, Apple already accounted for an average of 65% of enterprise endpoints, and 96% expected their Mac fleets to grow.
    Computerworld — enterprise Apple adoption accelerating: Apple silicon Macs favoured for running AI models locally, alongside Apple's consolidated business-management platform and large corporate deployments — 2026 · publ. 2026 · source ↗
  7. ReportedIn November 2020 Apple began moving the Mac from Intel processors to its own chips, starting with the M1 in the MacBook Air, the 13-inch MacBook Pro and the Mac mini.
    Apple press release, 'Introducing the next generation of Mac' (10 November 2020) - MacBook Air, 13-inch MacBook Pro and Mac mini powered by M1 — November 2020 · publ. 10 November 2020 · source ↗
  8. ReportedRevenue had been about $25 billion a year for most of the decade, $25.5 billion in fiscal 2015 and $25.7 billion in fiscal 2019, and rose 11% in fiscal 2020 on higher sales of the MacBook Pro; it then rose 23% in fiscal 2021 and 14% in fiscal 2022, to $40.2 billion, 56% above fiscal 2019.
    Apple Form 10-K, FY2015 - net sales and unit sales by product FY2013-FY2015 (iPhone $155,041M; iPad $23,227M on 54,856K units, and $31,980M on 71,033K in 2013; Mac $25,471M, $21,483M on 16,341K in 2013; Services $19,909M; Other Products $10,067M) — FY2013-FY2015 · publ. 28 October 2015 · source ↗
  9. ReportedRevenue had been about $25 billion a year for most of the decade, $25.5 billion in fiscal 2015 and $25.7 billion in fiscal 2019, and rose 11% in fiscal 2020 on higher sales of the MacBook Pro; it then rose 23% in fiscal 2021 and 14% in fiscal 2022, to $40.2 billion, 56% above fiscal 2019.
    Apple Form 10-K, FY2019 - the recast category table (Wearables, Home and Accessories +41% and +36% on AirPods and Apple Watch; iPhone -14% on lower unit sales; Services +16%); gross margin by products and services, services 55.0% (2017) and 63.7% (2019) — FY2017-FY2019 · publ. 31 October 2019 · source ↗
  10. ReportedRevenue had been about $25 billion a year for most of the decade, $25.5 billion in fiscal 2015 and $25.7 billion in fiscal 2019, and rose 11% in fiscal 2020 on higher sales of the MacBook Pro; it then rose 23% in fiscal 2021 and 14% in fiscal 2022, to $40.2 billion, 56% above fiscal 2019.
    Apple Form 10-K, FY2020 - iPhone decreased due primarily to the absence of new iPhone models in the fourth quarter of 2020; Mac +11% on the MacBook Pro — FY2020 · publ. 30 October 2020 · source ↗
  11. ReportedRevenue had been about $25 billion a year for most of the decade, $25.5 billion in fiscal 2015 and $25.7 billion in fiscal 2019, and rose 11% in fiscal 2020 on higher sales of the MacBook Pro; it then rose 23% in fiscal 2021 and 14% in fiscal 2022, to $40.2 billion, 56% above fiscal 2019.
    Apple Form 10-K, FY2022 - net sales by category FY2020-FY2022 (Mac $40,177M; Wearables, Home and Accessories $41,241M in 2022; iPad -8% on the iPad Pro) — FY2020-FY2022 · publ. 28 October 2022 · source ↗
  12. ReportedMac sales fell 27%, or $10.8 billion, in fiscal 2023, on lower sales of laptops.
    Apple Form 10-K, FY2023 - iPhone -2% ($4.9B) on non-Pro models; Mac -27% ($10.8B) on laptops; iPad -3% on iPad mini and Air; Wearables, Home and Accessories -3% ($1.4B); Services +9% ($7.1B) across all lines of business — FY2023 · publ. 3 November 2023 · source ↗
  13. Moat Explorer calcMac revenue grew 12.5% in FY2026.
    Moat Explorer calculation from Apple's Q4 FY2026 results exhibit (growth rates, category and segment shares, products and Services gross margins, gross-profit shares and compound growth rates are all derived from the reported dollar figures) — FY2026 · publ. 3 November 2026 · source ↗
    Method: Shares and margins are the reported dollar lines divided into one another.
  14. Moat Explorer calcAt $37.9 billion the Mac is 5.6% below its FY2022 peak of $40.2 billion.
    Moat Explorer calculation from Apple's Q4 FY2026 results exhibit (growth rates, category and segment shares, products and Services gross margins, gross-profit shares and compound growth rates are all derived from the reported dollar figures) — FY2026 · publ. 3 November 2026 · source ↗
    Method: Shares and margins are the reported dollar lines divided into one another.
  15. Moat Explorer calcThe Mac compounded at about 5.7% a year from FY2019 to FY2026, ahead of the iPad's 3.9%.
    Moat Explorer calculation from Apple's Q4 FY2026 results exhibit (growth rates, category and segment shares, products and Services gross margins, gross-profit shares and compound growth rates are all derived from the reported dollar figures) — FY2026 · publ. 3 November 2026 · source ↗
    Method: Compound annual growth from the FY2019 recast base to FY2026, i.e. (end/start)^(1/7)-1.
  16. Moat Explorer calcUnit data, available until fiscal 2018, show the line was never a volume business: Apple sold 16.3 million Macs in fiscal 2013 and 18.2 million in fiscal 2018, at $1,315 and $1,400 of revenue per machine.
    Moat Explorer calc from Apple Forms 10-K (FY2015-FY2025) and 10-Q (FY2026): category net sales, units to FY2018, products and services gross margin, installed base reported each January — FY2013 to June 2026 · publ. 2026-09-19 · source ↗
    Method: Mac net sales / units: $21,483M / 16,341K = $1,315 (FY2013); $25,484M / 18,209K = $1,400 (FY2018).
  17. Moat Explorer calcThe Mac was 7.9% of net sales in FY2026 against 10.9% in FY2015.
    Moat Explorer calculation from Apple's Q4 FY2026 results exhibit (growth rates, category and segment shares, products and Services gross margins, gross-profit shares and compound growth rates are all derived from the reported dollar figures) — FY2026 · publ. 3 November 2026 · source ↗
    Method: Shares and margins are the reported dollar lines divided into one another.
  18. Moat Explorer calcA products gross margin of 39.3% in FY2026.
    Moat Explorer calculation from Apple's Q4 FY2026 results exhibit (growth rates, category and segment shares, products and Services gross margins, gross-profit shares and compound growth rates are all derived from the reported dollar figures) — FY2026 · publ. 3 November 2026 · source ↗
    Method: Shares and margins are the reported dollar lines divided into one another.
  19. ReportedSales fell in the December quarter, to $8.4 billion from $9.0 billion, on lower sales of laptops and desktops, then rose 6% in March and 29% in June, and Apple called the June quarter its best ever for customers new to the Mac and for upgraders, despite significant supply constraints, adding that IDC's figures showed it gaining share globally.
    Apple Form 10-Q, quarter ended 27 December 2025 - iPhone $85,269M; Mac $8,386M (from $8,987M) on lower laptop and desktop sales; iPad $8,595M on iPad and iPad Pro; Wearables $11,493M (from $11,747M); Services $30,013M — Q1 FY2026 · publ. 30 January 2026 · source ↗
  20. ReportedSales fell in the December quarter, to $8.4 billion from $9.0 billion, on lower sales of laptops and desktops, then rose 6% in March and 29% in June, and Apple called the June quarter its best ever for customers new to the Mac and for upgraders, despite significant supply constraints, adding that IDC's figures showed it gaining share globally.
    Apple Form 10-Q, quarter ended 28 March 2026 - iPhone $56,994M (from $46,841M) on Pro models; Mac $8,399M on laptops; iPad $6,914M on the iPad; Wearables $7,901M (from $7,522M); Services $30,976M (from $26,645M) — Q2 FY2026 · publ. 1 May 2026 · source ↗
  21. ReportedSales fell in the December quarter, to $8.4 billion from $9.0 billion, on lower sales of laptops and desktops, then rose 6% in March and 29% in June, and Apple called the June quarter its best ever for customers new to the Mac and for upgraders, despite significant supply constraints, adding that IDC's figures showed it gaining share globally.
    Apple Form 10-Q, quarter ended 27 June 2026 - iPhone $54,252M (+22%); Mac $10,352M (+29%); iPad $6,191M (-6%) on iPad mini and Air; Wearables $7,883M (+6%); Services $30,739M (+12%) on advertising and cloud services; nine months: iPhone $196,515M, Mac $27,137M, iPad $21,700M, Wearables $27,277M, Services $91,728M; services gross margin 75.6%; deferred revenue $14.9B, 64% within a year — Q3 FY2026 · publ. 31 July 2026 · source ↗
  22. ReportedSales fell in the December quarter, to $8.4 billion from $9.0 billion, on lower sales of laptops and desktops, then rose 6% in March and 29% in June, and Apple called the June quarter its best ever for customers new to the Mac and for upgraders, despite significant supply constraints, adding that IDC's figures showed it gaining share globally.
    MacRumors live coverage of Apple's Q3 FY2026 call (30 July 2026) — installed base above 2.5 billion; product margin 40.1% with a 2.5-point tariff-refund impact; September-quarter guidance: revenue growth of 9-11%, gross margin 47-48% with about 1% benefit from tariff refunds; Apple introduced a neural engine in 2017 — Q3 FY2026 call · publ. 30 July 2026 · source ↗
  23. ReportedThe line-up behind it is fresh: the MacBook Pro moved to the M5 chip in October 2025, and the Neo followed in the spring.
    Apple Q4 FY2025 results release (8-K, exhibit 99.1) - the recently announced MacBook Pro and iPad Pro with the M5 chip — Q4 FY2025 · publ. 30 October 2025 · source ↗
  24. ReportedThe risk to the outlook is cost rather than demand: Apple raised Mac prices in June because of the memory shortage, and Tim Cook told CNBC after the June-quarter results that memory prices were choking and that Apple would have to look at alternatives.
    CNN Business live coverage of Apple's 9 September 2026 event — CEO John Ternus, who took over from Tim Cook earlier in the month, revealed the foldable iPhone Duo, starting at $1,999 and topping out at $3,199; pre-orders from October 16, availability from October 23; iPhone 18 Pro from $1,199 and Pro Max from $1,299 against $1,099 and $1,199 for the iPhone 17 Pro models; older iPhones up $100 (iPhone 17 $899 from $799, 17e $699 from $599); a new leasing plan, Apple Upgrade — 9 September 2026 · publ. 9 September 2026 · source ↗
  25. ReportedThe risk to the outlook is cost rather than demand: Apple raised Mac prices in June because of the memory shortage, and Tim Cook told CNBC after the June-quarter results that memory prices were choking and that Apple would have to look at alternatives.
    CNBC live coverage of Apple's Q3 FY2026 results (30 July 2026) — Services revenue up 12%; Cook said Apple has 1.5 billion paid subscriptions; gross margin guidance of 47%-48%; memory costs rising — Q3 FY2026 · publ. 30 July 2026 · source ↗
  26. ReportedMac revenue of $10,792M in the September quarter, up 24%, on demand for the MacBook Neo and MacBook Pro models.
    Apple Q4 FY2026 earnings call — Ternus: memory pricing "unprecedented"; Khan: manufacturing purchase obligations up $33 billion from the June to the September quarter, December constraints on Mac and iPad "primarily driven by memory"; Parekh: December revenue growth 7-10% and "the best quarter for revenue in the history of the company", Services growth 8-9% with "headwinds, primarily driven by third-party licensing and foreign exchange", gross margin 45-46% on higher memory costs and the Siri AI ramp, Siri AI cloud costs recognised through Services cost of sales; installed base over 2.5 billion active devices; paid subscriptions over 1.5 billion; Services gross margin 76.0%; App Store "performance was similar to the prior year" with "headwinds in mobile gaming" — Quarter ended 26 September 2026 · publ. 2 November 2026 · source ↗
  27. Moat Explorer calcFY2026 Mac revenue of $37,929M against the FY2022 peak of $40,177M, 5.6% short.
    Moat Explorer calculation from Apple's Q4 FY2026 results exhibit (growth rates, category and segment shares, products and Services gross margins, gross-profit shares and compound growth rates are all derived from the reported dollar figures) — FY2026 · publ. 3 November 2026 · source ↗
    Method: Shares and margins are the reported dollar lines divided into one another.
  28. ReportedSabih Khan: "we expect constraints on Mac and iPad, primarily driven by memory as demand has been higher than what we expected."
    Apple Q4 FY2026 earnings call — Ternus: memory pricing "unprecedented"; Khan: manufacturing purchase obligations up $33 billion from the June to the September quarter, December constraints on Mac and iPad "primarily driven by memory"; Parekh: December revenue growth 7-10% and "the best quarter for revenue in the history of the company", Services growth 8-9% with "headwinds, primarily driven by third-party licensing and foreign exchange", gross margin 45-46% on higher memory costs and the Siri AI ramp, Siri AI cloud costs recognised through Services cost of sales; installed base over 2.5 billion active devices; paid subscriptions over 1.5 billion; Services gross margin 76.0%; App Store "performance was similar to the prior year" with "headwinds in mobile gaming" — Quarter ended 26 September 2026 · publ. 2 November 2026 · source ↗
Sources
Generated November 3, 2026