What’s going on? Didn’t Apple just raise prices late last year? Mac models went up. iPhones were priced higher than ever. New iPad Pro models are pushing into MacBook Pro territory. Did Apple raise prices just so they could offer sales later?
Sales & Services
The basic math of Apple Inc tells me that the iPhone maker is in something of a transitional period. Mac, iPhone, and iPad sales have hit a plateau the past few years, and even higher price tags do not make up for the shortfall in sales units. New hit products– Apple Watch and AirPods come to mind– are not priced like Macs and iPhones.
So, what’s going on? Why is Apple on sale?
On sale? Mac360 colleague Kate MacKenzie pointed out the advantages of using an RSS news reader to follow ongoing trends. It works very well. Plug in a number of technology websites to an RSS news reader and you get an instant view of what is happening in the Applesphere.
Christine McKee has but one example of many Apple products that are on sale these days. No, not so much products on sale at the Apple Store, but definitely on sale at big box stores like Best Buy, and online stores like Amazon and B&H Photo.
Scanning through my RSS reader today I saw sale prices on MacBooks, MacBook Air, iPad Pro, Apple Watch Series 4, even AirPods (last year’s model). In some cases it’s obvious what is going on. Apple has new models in the product pipeline and too much in inventory, so the old has to go to make way for the new.
I suspect that’s the case with the MacBook sale– $799 is a big drop from the retail price on the Apple Store at $1,299 (a crazy-assed price if there ever was one; the improved MacBook Air is priced $100 less, and an entry-level MacBook Pro comes in at $1,299, too.
I’m now of the opinion that Apple’s most recent price increases on Mac, iPhone, iPad, Watch, and AirPods, are the result of slowing economics in the market, and new prices now give Apple ample room to discount products to keep sales moving along.
Apple may be on sale but the discounts are from new higher prices (or, products that are ready to be replaced).
The second opinion here is that Apple’s new found love affair with Services is recognition that it needs more customers, and even hardware buyers who own an Apple product are also in the market for new goodies from Apple News+, Apple TV+, Apple Music, Apple Pay, and so on.
Money talks, and sometimes it talks discounts.