Apple (NASDAQ:AAPL) unveiled several Mac-focused products at a Scary Fast event yesterday. The highlights included the introduction of the new M3 chip family (M3, M3 Pro, and M3 Max), the new MacBook Pro models, and the iMac, all powered by these newly introduced chips. The event garnered significant attention from Wall Street firms, and here's a snapshot of their analyses:
Citi:
Apple's M3 chips promise impressive features, including a next-generation GPU with "Dynamic Caching" technology and powerful CPU performance cores. Compared to the M1 chips introduced in 2021, the new M3-equipped MacBook Pro models boast speeds up to 11x faster than their Intel (NASDAQ:INTC) counterparts. Likewise, the new iMac is up to 4x faster than the 21.5-inch Intel models. Analysts at Citi believe the M3 chip will continue to drive Intel-based model users to switch to the in-house models for better performance and longer battery life. Citi maintained its Buy rating, with a $240 price target.
Morgan Stanley:
While the Mac has gained 300bps of TTM global PC market share since the first M-series chip was introduced in June 2020, the bank highlighted that performance concerns about the M2 resulted in a slowing of Mac share gains in recent quarters. The "Scary Fast" M3 MacBook Pro is Apple's response, offering better performance and more accessibility. With a 20% cheaper 'entry-level' SKU for the 14" MacBook Pro with M3 compared to the lowest-end M2 ProPowered MacBook Pro, Apple is now offering its fastest M-series SoC family on its best-selling Mac SKU to a wider audience than ever before. Analysts at Morgan Stanley predict that the M3 MacBook launch could help turn around the Mac business, especially with the holiday season approaching. The firm maintained an Overweight rating with a $210 price target on the stock.
Deutsche Bank:
Analysts at Deutsche Bank emphasized the potential of the new MacBook Pro products in capturing significant market share during the upcoming holiday season. As for iMac, the bank believes it’s due for an upgrade given the last product was based on M1 processor introduced in April 2021. Overall, Deutsche Bank believes the impressive performance of Apple silicon should continue to help the company gain a share in a PC market that is expected to see only modest growth in the next few years. The bank maintained a Buy rating with a $200 price target on the stock.
Evercore ISI:
Analysts at Evercore ISI foresee the new chips driving an incremental refresh, emphasizing the substantial boosts in performance and capabilities they offer. The firm reiterated its Outperform rating with a $210 price target.
Bernstein:
While the new processors and Macs were in line with expectations, the analysts believe Apple watchers might feel some disappointment, having hoped for a larger M3 iMac or other speculated products, such as upgraded iPad mini, new Airpods, or upgraded Mac accessories with USB-C connectors.
Analysts at Bernstein think the new Mac's revenue impact on Apple is anticipated to be minimal, given the Mac business accounts for about 8% of Apple's total revenues. Moreover, the analysts noted that the Mac introductions yesterday were performance improvements, rather than redesigns, which historically have had a more significant impact on Macs' performance. Bernstein reiterated its Market Perform rating with a $195 price target on the stock.