Apple Just Increased Prices on MacBooks, iPads, and More

[jchap]

Apple Japan is hitting customers particularly hard with this price increase. A 20–30% increase across the board.

The base spec MacBook Airs sold by Apple Japan are now nearly at pre-price hike MacBook Pro 14-inch levels. The base models used to be under the ¥200,000 mark. That's a thing of the past now. Even the base spec Neo has climbed up well past the ¥100,000 mark. Being under that mark was the sweet spot for being affordable for most, but no longer. The weak yen against the USD has definitely fueled the rising prices here as well.

I feel sorry for people who really need a computer or tablet right now. As for me, I'm way out of the market to upgrade right now for at least a few years. I have better things to spend my money on, like the necessities of life.

At least this steep price hike might help people to better define their priorities. Upgrading every year "just because" is going the way of the wind, for all but the rich.

 

[anthony11]

Substantial, yes. Massive, not really. It's kinda like when financial news says that an index "tumbles" when it is down by half a percent.

 

[PowerButton]

The scary thing is where does it end? AI doesn’t appear to be plateauing any time soon.

 

[gmanjeff]

I am pretty sure this severely halted the popularity of the macbook Neo..
I think they made a huge mistake, and should not have increased the price of the neo, as when prices globally are that expensive you want everyone on your platform.

A mobile all in one device, with icloud etc.
Ah well

Apple may not have enough of the binned iPhone chips to meet demand at those original, bargain basement prices. So decreasing demand for the Neo in the short-term makes sense until the next gen version is released with 12 gb RAM to truly justify price increase.

 

[PowerButton]

The Vision Pro was released 2 years ago and it’s gone up in price - sure the chip has changed but nothing noteworthy at all. These prices are crazy…

 

[snipr125]

Apple may not have enough of the binned iPhone chips to meet demand at those original, bargain basement prices. So decreasing demand for the Neo in the short-term makes sense until the next gen version is released with 12 gb RAM to truly justify price increase.

The next gen Neo will probably get a further price increase don't count that out, but the Neo will probably sell even better now as its still the cheapest macbook, but also had the lowest price increase of the mac range at only £100, whereas the MBA/MBP had a £200 plus price increase.

 

[vantelimus]

Except that they're also raising prices on refurbished devices, which contain components purchased prior to the component price increase...

It doesn't matter when a working component was manufactured when it is being sold in today's market. The economic value to a consumer (EVC) of a device in a (mostly) free market is the price that substitutes and replacements cost. If Apple (or anyone) were to sell refurbed models at prices discounted from the price paid at the time they were originally purchased, then they would be 1) undercutting their own market; 2) leaving money on the table; and 3) violating the current standard pricing regime (EVC) used in capitalistic markets and taught in every business school. If you want it to work differently, then vote for greater government control over markets.

 

[BeatCrazy]

How about showing your work.

If it’s “pure profit”, a “money grab” as you and many others are contending, then why did investors dump the stock today, taking AAPL over 13% below Its all time high?

This price increase will hurt Apple’s margins, it’s not going to stay the same. That’s fantasy.

Sure it's down today... but let's check back in a year. AAPL is a long game, always has been.

 

[BeatCrazy]

Wait, Apple makes its own silicone and memory (it’s integrated into the silicone), so why are they hiking prices for RAM?

Apple doesn't "make" anything. TSMC fabs Apple's silicon.

 

[dblissmn]

I think the dirty little secret is that their supply chain is in meltdown. This isn't just covering costs. It isn't even just covering percentage margins. It feels like rationing. Look at the backorder situation which has now spread far beyond Studios to take down all kinds of laptops too. That's why the stock market reacted so badly. The yarn everyone believed about hoarding, ahem, "supply chain management", turned out to be nothing. Instead Apple had sleepwalked into months of backorders.

 

[SnowCrocodile]

Oh well. Updated my iPhone earlier this year and it looks like I'm not going to be buying any other Apple devices for a loooong while. I can afford it but these prices are insane and, honestly, I am getting tech burnout.

I hope by the time my M2 MBA gets hopelessly slow, they will finally figure a way to run Mint on it, and get a working LibreOffice on mobile.

 

[SnowCrocodile]

This is the dark ages of personal computing.

This is the dark ages of ecosystems.
Linux Mint on an old device runs like a champ. But it has no ecosystem, just a computer with an OS, like it's 1999 all over again.

 

[hajime]

Cook is a piece of ****. Worthless CEO

He has been promoted from Greedy Tim to Sinner Tim as:

1. He suddenly increased the prices without giving us a deadline while postponing the Back To School promotion.
2. Refurbrished Mac made before today also have their prices increased.
3. No increase in trade-in values

 

[dizmonk]

For those still waffling Best Buy dropped some of the Air and Pro models presumably to match Amazon. I just ordered one, even though I have the 15” m5.

 

[Dreamail]

That's 12 years ago. Just recently someone asked me to 'translate' my pre-retirement wages to today's value in U$. Almost double. Yours is not a fair comparison.

It is perhaps not a fair comparison from a US point of view.

But you may not know that Japan had deflation (not inflation) over the past 30 years. Prices - and salaries - have not increased for 30 years. They stayed the same. Hard to believe for someone in the US.
All the while US salaries doubled or tripled in the past 10-15 years.

So from my point of view, this increase is too much.

It will seriously - and from what I hear from people working at Apple Stores in Japan - already has damaged Apple's market share in Japan.
People can no longer afford Apple products.

With iPhones it is easier, people can just hold on for a few more years and just move to cheaper models, but with Macs it is harder if security updates are no longer provided and lower end Macs cannot get the jobs done.
People here are forced to leave Apple behind. And it is already happening. And with the price increases yesterday, it will get really hard for Apple to maintain its market share here.

Sure, other hardware vendor prices increased too.
But Apple has always been in the higher priced market segment - likely a segment that will hurt a lot in coming months and years. I am not worried about Apple's iPhone market share, but the Mac ... is a different story. In the long run it will likely be only the MacBook Neo and the MacBook Air. All other models might go the way of the Mac Pro...
With Apple unable to sell enough of them to reach profitability, they might have to pull the plug on higher priced models eventually.

 

[Dreamail]

All the people claiming to leave Apple due to this price hike haven’t been following prices on Windows PC’s the last twelve months. Objectively speaking, Apple is no less competitive after this hike than they were the last time you bought a Mac. We have just been spoilt the last several months due to Apple holding out longer than competition.

The issue is not that Apple is too expensive compared to the competition.
You might have misread my comment. I apologize for being too vague.

The issue will be that the consumer and prosumer computer market will likely collapse as a whole.
People will be forced to shift their computing needs towards other solutions.
Maybe use tablets, or use phones with external monitors connected. Whatever. There will be other solutions.

But the days of prosumers buying MacBook Pros in droves have ended, I think.
It will be MacBook Neos and MacBook Airs from now on.

Which means that higher end MacBook Pro and Ultra models may be forced to go the way of the Mac Pro eventually.
With not enough people buying them, when even businesses are switching to MacBook Airs (my company does!), then Apple may not sell enough of them to warrant keeping producing these highend products. Like with the Mac Pro.
I can totally see this happening.

 

[ceddy]

Yikes! Very happy I got my MBP M5 refurb a month ago. Almost 1k cheaper than the new base model price...ouch!

 

[SnowCrocodile]

Another thing is that this provides a prime opportunity for Xiaomi, Huawei and other higher end Chinese manufacturers to flood the market. They can easily establish a foothold when both Apple and Samsung are getting too pricey. They don't even need to be cheap. Just significantly cheaper.

 

[BeatCrazy]

Another thing is that this provides a prime opportunity for Xiaomi, Huawei and other higher end Chinese manufacturers to flood the market. They can easily establish a foothold when both Apple and Samsung are getting too pricey. They don't even need to be cheap. Just significantly cheaper.

If you think Xiaomi, Huawei can get component prices cheaper than Apple - I have a bridge to sell you.

 

[dukebound85]

This is the dark ages of ecosystems.
Linux Mint on an old device runs like a champ. But it has no ecosystem, just a computer with an OS, like it's 1999 all over again.

wish my 2019 T2 mbp could do linux easily

 

[SnowCrocodile]

If you think Xiaomi, Huawei can get component prices cheaper than Apple - I have a bridge to sell you.

They can sell cheaper than Apple and still maintain a profit margin. As long as required to establish a customer base and take market share, they can even sell at cost and their government will help them.

 

[BeatCrazy]

They can sell cheaper than Apple and still maintain a profit margin. As long as required to establish a customer base and take market share, they can even sell at cost and their government will help them.

You made 4 big assumptions in just 2 sentences.

 

[SnowCrocodile]

You made 4 big assumptions in just 2 sentences.

I've been watching the Chinese companies compete in other markets and sectors for a while, and reading plenty of market research, including privately sourced corporate reports.

Why do you think all US administrations have been fighting tooth and nail to keep their automotive companies out of domestic market altogether?

 

[BeatCrazy]

I've been watching the Chinese companies compete in other markets and sectors for a while, and reading plenty of market research, including privately sourced corporate reports.

Why do you think all US administrations have been fighting tooth and nail to keep their automotive companies out of domestic market altogether?

You're moving the goal posts. The component/memory shortage can't be "fixed" with Chinese government subsides. If anything, the Chinese government and national companies are reaping the rewards of the extraordinary demand.

 

[SnowCrocodile]

You're moving the goal posts. The component/memory shortage can't be "fixed" with Chinese government subsides.

Read my post again. I never said that they will not be subject to component price increases. They however have a much better opportunity to undercut Apple and Samsung on price when their prices are getting into unaffordable territory. The customers who would never consider a Xiaomi to begin with, will at least take a look if they just can't afford an iPad.