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Apple Raises It Prices For Ipads And Computers
Analysts quickly discovered a pattern as Apple introduced new products at its event in New York on Tuesday. The company's new versions of the iPad Pro, Mac mini and MacBook Air all have impressive improvements - the price is higher than the price they replaced.
The new entry-level iPad Pro has a larger screen, a faster processor, and the loss of the Home button, instead using Apple's high-security facial recognition login system Face ID. But its starting price jumped from its predecessor price to $799 and sold for $599.
Similarly, the improved MacBook Air gained faster speeds and offered a higher resolution screen than it replaced, around 2015. But the new laptop starts at $1,199, while the old notebook costs $999. Apple will continue to sell at this price - at least for now.
Finally, the long-neglected Mac mini desktop computer, without a keyboard, screen or mouse, has been updated, starting at $799 from the starting version, starting at $499.
In all three cases, Apple may argue that the better specifications and features of the updated device deserve a higher price. For example, the new entry-level Mac mini comes with 8 GB of RAM and a fast SSD hard drive, compared to 4 GB of RAM and the old-fashioned rotating hard drive that debuted in 2014.
But technology companies always improve their specifications when they update their products, and usually don't raise prices.
Some analysts expect that customers will continue to buy higher-priced products, thereby increasing Apple's revenue, as overall technology equipment sales stall. After the incident, CFRA Research analyst Angelo Zino wrote: "Although this event didn't make much sense, we were impressed with these products and the shift in providing more content to higher prices."
That's what happened to the iPhone last year, when Apple introduced the iPhone X for $999 and raised the price of other new models. Although Apple's sales at the end of 2017 and early 2018 did not increase compared to the same period last year, the average sales price increase led to a 14% increase in revenue.
Last month, Apple adopted the same strategy to increase the price of the cheapest new iPhone iPhone XR from last year's iPhone 8 to $749, while the iPhone 8 price started at $699 in 2017.
Apple investors seem to adopt a wait-and-see attitude. Many of the features of the new product - although not the price increase - have been leaked before the incident. Apple's (aapl, + 1.06%) stock has risen 27% so far this year, and has remained largely unchanged in the afternoon.
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