The Meltdown

Economy Takes Bite Out of Apple

Mac's sales decline in November.

The formerly invincible Apple may have finally met its match—the recession. Last month sales, of Macs declined 1 percent from a year ago while industry-wide PC sales rose 2 percent, according to retail tracker NPD Group Inc. The disconcerting numbers led Goldman Sachs to cut their estimate of the company's 2009 profit, warning that "some nicks have started to emerge." The decline is mostly due to a drop in desktop sales, which were down 35 percent, even as laptop sales increased by 22 percent. But with Apple's commitment to its premium-pricing strategy and the willingness of rivals like H-P and Dell to offer steep discounts, things might not get any better. "What you're seeing in the numbers is price sensitivity with the consumer," said Gene Munster, an analyst at Piper Jaffray. Of course, this is Apple, maybe they'll just release a picture-taking shoephone and be just fine.