The recent all-time highs in Apple and other tech names have many analysts say that they are priced to perfection, leaving very little room to see where possible future growth could come from. However, the recent release of Apple’s first computer targeted CPU in the Apple M1 may change all that.
M1 based laptops have been receiving rave reviews from fan and not fans a like. They’re fast, power efficient and fully optimized for macOS leading to stellar battery life and a product whose price/performance ratio no longer carriers the traditional “Apple Tax”.
This could lead to significant inroads in the traditional PC market, especially in the laptop segment, where long battery life is a significant selling point to the customer. But the potential for increased profit doesn’t just come from an increase in sales, as the M1 chips are also significantly cheaper for Apple to produce, compared to their Intel counterparts. This means that Apple is not just no longer splitting profits with Intel, but has even greater margins on its products. All this is on a product that now performs better Intel-based equivalents means Apple now has another avenue for longer-term growth that may not have been fully digested by the market.