Why Apple should stop making Macs

I was making a BCG matrix for a client of mine the other day. And I just wondered what it could reveal on Apple’s product portfolio and its future decisions.

As a reminder a BCG matrix a strategic tool to identify the growth and profit potential of each product or business unit.

You first determine the growth of the market and the market share of the product. You end up with 4 categories of product:

  • Stars: Profitable and growing product. Usually companies pour more money in it to push them further. In Apple’s case, the star products are the iPhone and iPad
  • Cash cows: extremely profitable product, no extra effort or investment is needed to maintain them. Here one finds the iPod, where Apple enjoys a huge market share in a stable market.
  • Question marks: These products have an uncertain future. No apple product fits in this category.
  • Dogs: These products should be stopped if unprofitable. If profitable, no investment should be made. This may mean selling the product operations. In Apple’s case, the MAC operations.
Apple BCG Matric

Apple BCG matrix

Will Apple sell its MAC operations? I don’t think so, but surely Apple won’t invest much in the development of the next Mac generation. Bur will surely focus on its iPads and iPhone star products.

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