Guess what has continued without letup for about eight or nine months; since just after Apple release the new iPhones last year? Apple has been on sale. No, not at the Apple Store, but there are hints.
Somewhere last year Apple figured out that it was still making money on hardware customers who bought software and other items in the Services revenue stream, so it upped its game to get more customers. What happened?
This is what seems so obvious in retrospect. Last year Apple took on a boatload of criticism from the stock market, some customers, and many technology critics because it seemed as if the company had raised prices. Actually, Apple just introduced new products with higher prices than the products they replaced.
Greed Apple, right? Or, maybe it was something else. Like, you know, crazy Apple like a fox.
Apple raised prices on iMac (iMac Pro), iPad Pro, Mac mini, MacBook Pro, MacBook Air, and, of course, all the new iPhones. iPhone XS, XS Max, and XR.
Shame on Apple, right?
Except, if you look back and look around, you see something that has changed. Apple raised prices, yes, but it’s also discounting products all over the place. No, not at the Apple Store, but there are some bundled promotions which help reduce the overall price of various iPhone models.
No, elsewhere you see the discounts on all those produces in the list above. Where? Amazon, Best Buy, Target, BandH, and many other online retailers. It almost looks like a fire sale. New iPads are over $100 off retail. New iPhones have great cellphone company bundles and packages. MacBooks get price discounts that amount to hundreds of dollars.
What’s going on?
Again, it should be obvious. Apple raised prices and that gave it some room in the gross margins to discount products all over retail, including Amazon. iPad, MacBook Air, MacBook, iPad Pro, even iMac Pro, Apple Watch, Apple TV, AirPods, and MacBook Pro have received hefty discounts.
What does that mean?
It means Apple gets to keep the luxury brand so carefully cultivated through the years, while moving more hardware into the market, which then, in turn, means more customers who buy more services and accessories.
How is that not a great strategy and Apple pulled it off.