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As if they don't already earn enough profit?
I’m guessing you were the first to tell your boss not to give you a raise and that you will absorb the 6.5% inflation (ie, take a 6.5% pay cut) so that those who are less fortunate can afford to buy your company’s products. Because clearly, if you can afford Apple’s products and have time to commiserate online, while billions are barely scraping by working 60 hours or more/week, you’re earning too much.
 
So the material cost in the iPhone increases by 20%, that's 5$, Apple will increase the iPhone price by 20%, that's 200$. Some "Apple formatted" people will then come here and say it is normal, as it is a new model which is better than the previous one.
 
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A small increase in price to them means another $99 added to the final price to the customer.
That $99 dollar would be amortized over an average of three years so about $33 / yr. How many hours per day do you use a phone or laptop ? If we amortize that $33 over the annual hours you use the device it's not even a rounding error. $33 is less than what it costs to fill up your car with gas once. It's a about six cups of coffee at Starbucks or one casual meal at a cheap casual restaurant. You should probably worry more about the massive price increases in everything else right now.
 
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Ultimately, Apple has a responsibility to investors to pass on these regrettable increases in costs to consumers. They'll also hedge higher than the actual costs too, so there's potential to increase margins a little if they are able to control costs better than is predicted in the revised pricing coming later this month.
 
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I have to admit that this passing of the financial buck on the part of corporations is incredibly irritating. Conditions have made the industry somewhat less lucrative than it normally would be, meaning that it's now—however temporarily—a less lucrative industry. But the product isn't fundamentally better for the difference; it's simply (temporarily) more expensive to produce. The responsibility for this shouldn't be passed onto the customer. It's a temporary increase in the cost of doing business, and customers shouldn't pay the price for these kinds of fluctuations, imho.

And no, I'm not simply moaning about Apple being "overpriced", as so many of the ferociously boring trolls here do. In fact, I don't find Apple's products overpriced at all. I tried to live in a PC world for a while, running a Hackintosh laptop, and it simply wasn't worth the many sacrifices in user experience. Apple's laptops aren't particularly overpriced, when you take all aspects into account, so people should stop pretending it's a genuine issue.

EDIT: Actually, I'll make one exception to my above statement about Apple's prices. The 2016 MBP was overpriced garbage. No argument there. My current 16" MacBook Pro however has been an excellent machine, and well worth the price tag.
 
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Another reason to Stick with Intel on Mac

Plus you get to run the NEW and AWESOME WINDOWS 11

Only 3.8GB in size compared to 12.5GB for macOS Monterey.

i think m1 is a much, much better chip on mobile devices. desktop i would still rather have intel or even amd as a choice, but that's because i game.
 


Apple will need to pay more for the chips in its devices and may pass rising costs on to its customers, according to sources speaking to Nikkei Asia.

tsmc_semiconductor_chip_inspection_678x452.jpg

TSMC, Apple's main chip supplier, is in the process of increasing its prices following wider inflation in the industry caused by the global chip supply shortage. The company's planned price rises are said to be the most substantial chip price hikes in a decade.

TSMC's chips were already around 20 percent more expensive than those from its direct rivals, but smaller foundries have ramped up their own prices due to higher material and logistics costs, and TSMC has committed to $100 billion in new investment over the next three years, motivating the company to increase its prices to maintain its premium and pass these added costs on to clients.

TSMC is reportedly also keen to stop its clients from ordering more chips than needed in the hope of securing production line space and additional support from contract chipmakers, which has made it difficult for the company to understand real demand. Clients will need to negotiate specific terms for manufacturing before the price rises officially take effect from October 1.

The company is still working through existing orders, meaning that the impact of the price rises will be felt much more acutely next year when production capacity has expanded and existing orders have been completed. Sources speaking to Nikkei said that chip developers such as Qualcomm will pass TSMC's price increases onto device makers such as Apple. TSMC also supplies Apple directly with the likes of the A14 and M1 chips.

The effect on retail prices for devices such as smartphones and computers is expected to be "noticeable." It is speculated that consumer electronics brands will increase the retail prices of their high-end models next year to offset the impact on mid-range and entry-level devices.

Chip prices are expected to remain high while clients push for smaller fabrication and more advanced chip production processes. Other sources said that the market should correct once demand falls since chipmakers will need to lower prices "to lure more clients and maintain utilization rates."

Late last month, DigiTimes reported that these price rises could hit sooner than expected, with the iPhone 13 lineup being more expensive due to increased chip costs. Even so, it appears that the effect of increased chip prices will not fully impact Apple until next year.

Article Link: Apple Products Could See 'Noticeable' Price Rises Amid Increased Chip Costs
I thought with M1 the chip price will be lower due to reduction on licensing cost.
 
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if Apple offered you the current 16" Intel MBP for $2300, and a 16" M1x that had similar ports and storage and dramatically better battery and was 2x as fast for $2600, which would YOU pick?
Except it's not 2x as fast for real world use. Most of the software isn't native yet and increases CPU usage like crap once converted through Rosetta (see Ableton Live). I'm sticking with my Xeon based iMac Pro until most of the software I use is M1 native.
 
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I have to admit that this passing of the financial buck on the part of corporations is incredibly irritating. Conditions have made the industry somewhat less lucrative than it normally would be, meaning that it's now—however temporarily—a less lucrative industry. But the product isn't fundamentally better for the difference; it's simply (temporarily) more expensive to produce. The responsibility for this shouldn't be passed onto the customer. It's a temporary increase in the cost of doing business, and customers shouldn't pay the price for these kinds of fluctuations, imho.

Isn’t this simply economics at work? Apple will raise the price and pass on any additional costs to the consumer if they don’t think that this will have any noticeable impact on overall sales.

It’s basically elasticity of demand and profit-maximising theories at work here.
 
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Someone wake me up when Apple announces an updated pro-level iMac... 💤
Prices are going to rise, chip shortage or not. That's what they do. I look at the value, rather than the price. For a really, really long time, Apple's products have provided me with more value than competing products, so I don't really care what the prices are (within reason).
 
Again. Why should I as consumer pay for net price increase? Come on, man. You seriously think trillion dollar company can’t weather temporary cost increase?

How far do you think price increase would be ridiculous?
There’s is this metric called profit margin. If it goes down, AAPL will be hit.
Apple products are for the wealthy or the poor, who finance them. A $100 price increase is irrelevant. Only those who pay cash and are not rich will care.
 
Except it's not 2x as fast for real world use. Most of the software isn't native yet and increases CPU usage like crap once converted through Rosetta (see Ableton Live). I'm sticking with my Xeon based iMac Pro until most of the software I use is M1 native.
I use an iMac Pro at the office. That thing is a beast for what I use it for (print and web design). Provided you're not doing high-end video, you (and I) should be happy using the iMac Pro for at least a few more years. By then, Apple will likely be on to the M2 or M2X and most of this current talk (software compatibility) will be long since dealt with.
 
I'm sure Apples contracts with them are in 10 or more year blocks. However, they will eventually see price increases in a future decade. So they will just gradually raise prices now to cover that. It's the same company that doesn't replace its own products with redesigns instead choosing to call them by a different name and charge more for them, they won't see a problem upping the prices of their products over time. Some will still be good deals for what you get. And I personally feel they were going to turn last years high end of the line into the middle tier and put the same chips they will put in Mac pros into a new $5,000 and up range of computers on the high end.
 
So what? If you can't afford an Apple product anymore, move on to something cheaper.

Accept certain inalienable truths
Prices will rise, politicians will philander, you too, will get old
And when you do, you'll fantasize that when you were young
Prices were reasonable, politicians were noble
And children respected their elders....
 
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A series chip. 20% increase will max increase cost for 20 dollars. How will this translate over 100 dollars increase?

Apple could easily sallow the cost and hope for increase in sales to offset increase in cost.
Increased sales will amount to increased revenue and perhaps increased profit. But without a price increase, it will lower margins. And for investors, those margins matter.
 
But I am consumer, I don’t care how much Apple will loss. I do care my wallet. iPhone is already god forbid expensive. I can hardly justify spending 1000+ on iPhone 12.

By the way, increasing in chip cost doesn’t translate visible price increase. As far as I know, it cost less than 100 dollar to manufacture A series chip. 20% increase will max increase cost for 20 dollars. How will this translate over 100 dollars increase?

Apple could easily sallow the cost and hope for increase in sales to offset increase in cost.

That's only one chip. There are many other components in an iPhone, such as a display, cameras, sensors, etc. Plus manufacturing costs and shipping. Each one of those cost increases are further subjected to Apple's margin, around 40%, that's applied to all costs related to the iPhone.
 
Again. Why should I as consumer pay for net price increase? Come on, man. You seriously think trillion dollar company can’t weather temporary cost increase?[...]
Nobody is forcing you (you the royal you) to do anything. Vote with your dollars if the value to dollars ratio doesn't meet your expectation. Why should Apple absorb the increase and why should you pay for it?
 
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Well, I'm already out on buying iPhones every 1-2 years as the prices are nuts, so I'm already good with my iPhone Mini for a few years (if that darn battery can hold up).

But I'm staring down the barrel at the new 16" MBP - was hoping it would be on par with Intel at least, I wasn't naive enough to think it would be less.
 
So what? If you can't afford an Apple product anymore, move on to something cheaper.

Accept certain inalienable truths
Prices will rise, politicians will philander, you too, will get old
And when you do, you'll fantasize that when you were young
Prices were reasonable, politicians were noble
And children respected their elders....

Exactly. Let us see how much further can Apple extract from its customer become people stop buying iPhone.

To me iPhone isn’t some must to have thing. I am more than happy to jump ship.
 
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