Apple Inc. (AAPL) has announced record sales of their Mac range, with 5.5 million sales in the fourth quarter of 2014. This is a 21 percent increase over the same period the previous year, while the PC continues to dwindle.

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This beats Apple's previous record from three years ago when it managed to sell 5.2 million Macs in one quarter. The new record beats iPad quarterly sales by 25 percent, which CEO Tim Cook calls "obvious cannibalization" as Apple moves to more sizes and prices.

Apple's average selling price for Macs dropped from $1,255 to $1,200 in one quarter. The MacBook Pro and Air have both dropped in price over last year, and the iMac continues to lower in price as Apple looks for more aggressive pricing against the PC market.

Tim Cook claims the back-to-school season has been good for Mac, with more people choosing Apple's OS X over Windows. Mac OS X still holds a small 7 percent of the market, but this continues to grow as Windows PC stagnates.

The less expensive iMac is a big reason for the drop in price, but the new $2,499 27-inch iMac with Retina Display could be a big boost for the average price of. This, on top of growing demand for the Mac Pro, should be enough to steady the average price for Mac.

Apple does not show how many sales of individual Macs, so it is impossible to know which type of Mac is the best selling one.

The iPad sales were down 12.5 percent year-on-year with a 7 percent decline in quarters. Apple announced the iPad Air 2 and iPad Mini 3 at their event in October, but they do not appear to offer much difference, a concern for Apple's tablet line.

Apple does not appear to be concerned with the decline in iPad sales and the high revenue of its iPhone line has made up for it this quarter.

Demand is "off the charts" for iPhone 6 and 6 Plus, said Tim Cook, Apple's CEO. He noted that the company is "excited initial results for iPhone 6 in China."by

"[W]e are heading into the holidays with Apple's strongest product lineup ever. We are also incredibly excited about Apple Watch and other great products and services in the pipeline for 2015," Cook said.

The company sold 39.3 million iPhones, generating about $23.68 billion in revenue, up 21 percent from a year ago. However, iPad sales declined 14 percent to $5.32 billion, with about 12.32 units sold.

TagsMacbook, iMac, PC, Apple Q3 earnings call, Ipad