Apple is feeling the pain of a recession as the sales of its Mac unit decline. Mac sales dropped 1% from a year ago. PC sales overall rose 2%. The growth in Apple’s laptops madeup for a steep drop in desktop Mac sales. Desktop Mac sales have dropped 35%.

Unlike PC retailers who have slashed prices by as much as 50% this holiday season, Apple is stubborn about cutting prices on its products. According to Steve Jobs, the company does not know how to make a laptop for under $500 that is not a piece of junk.

Despite the drop in sales, many analysts believe that Apple is well positioned to stay more profitable that many other PC makers.

Via WSJ