Apple (AAPL) Provides Self-Service Overhaul for Mac Notebooks

Apple AAPL has announced the expansion of its self-service repair services for MacBook Air and MacBook Pro notebooks, which are installed with the M1 chip. The manual and genuine Apple parts required for repairing Apple notebooks are made available for users at the Apple self-service repair store from today (Aug 23, 2022).

AAPL launched the self-service repair program earlier this year for iPhone users in the United States and the program will expand operations to countries in Europe later this year. The self-service repair program for MacBook Air and MacBook Pro offers more than a dozen different repair types for each model, including the display, top case with battery and a track pad.

This recent service offered by Apple is in order to attract customers who are experienced with the knowledge of repairing electronic devices and can complete repairs on these Mac notebooks, with access to many of the same parts and tools available at Apple Store locations and with AAPL-authorized service providers.

Apple’s recent provision for customers will likely aid MacBook sales growth. AAPL is facing fierce competition from companies like Dell Technologies DELL in the area of desktop and other computing devices.

AAPL is operating in a highly competitive space where companies like Dell are vying for market share with aggressive pricing competition, frequent introduction of products and services and easy availability of products in the market, which users can use to repair their products comfortably. Dell beat Apple in opening its own accessories store where customers buy computing devices like laptop parts, batteries and upgrades.

In the last reported third quarter 2022, Mac sales of $7.38 billion decreased 10.4% from the year-ago quarter’s level and accounted for 8.9% of total sales. To increase sales of its Mac products, Apple is expanding its accessibility features to attract new customers.

AAPL also nearly doubled the number of service centers worldwide. Globally, there are more than 5,000 Apple-authorized service providers with above 100,000 active technicians.

Apple Inc. Price and Consensus

Apple Inc. Price and Consensus

Apple Inc. price-consensus-chart | Apple Inc. Quote

Apple Widens Service Menu to Drive Product Sales

Apple’s revenue-generating abilities are impacted negatively by adverse macroeconomic conditions. These include inflation, probable recession due to the Fed-hiked interest rates, increased tariffs and other barriers to trade due to geopolitical tensions, massive unemployment worldwide and unfavorable currency fluctuations, which affected AAPL’s product and service demand.

Except for the iPhone, its flagship product, demand for Apple’s other products like Mac, iPad, plus Wearables and other accessories declined year over year in the third quarter 2022.

However, these grim macroeconomic conditions are not just weighing on Apple. The current market volatility affected the revenue-generating capabilities of the entire cyclical industry, including AAPL’s major FAAMG peers like Meta Platforms META and Microsoft MSFT.

Apple, which currently carries a Zacks Rank #3 (Hold), has seen its stock lose 5.7% in the year-to-date period compared with the Zacks Computer - Mini computers industry and the Zacks Computer and Technology sector’s decline of 5.4% and 24.6%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Meta has seen its stock lose 51.5% in the year-to-date period compared with the Zacks Internet – Software industry’s decline of 48.3%.

The current macroeconomic turmoil deterred META’s bottom-line growth. This downtrend is reflected in Meta Platforms’share price movement.

Meta Platforms’ last reported second-quarter 2022 earnings of $2.46 per share decreased 32% year over year.

Same goes for Microsoft, earnings of which were hit hard by a sharp slowdown in its cloud business, declining videogame sales and the effects of forex woes.

Shares of Microsoft have lost 17.5% year to date compared with the Zacks Computer - Software industry’s decline of 20.3%.

Nevertheless, to increase demand for its products, Apple unveiled a suite of services along with easy accessibility to its products. AAPL launched unique features like door detection to support users with disabilities, a pay-later feature for all Apple users and the recent launch of a self-service feature for users with tech-repairing experience. AAPL is developing  its products and services in such a way that so that its portfolio can tap the overall market and attract new users to its offerings.

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