Other Are you happy about Apple’s recent pricing hikes?

[AppleFansF]

Another record for Apple in Q4 2022, with 90.1billion revenue and astonishing profit of 20.7 billion. Apple doesn’t have new products in the recent years, just some marginal improvements here and there (bigger screen, better camera and etc). To keep its revenue growth, Apple hikes price directly or indirectly. Even TV+, which only has a handful of shows, got a 40% hike. I am still loyal to Apple products, but I am unhappy that price keeps going up (much higher than inflation) with only marginal improvements. Is Apple getting greedy? What do you think?

 

[JapanApple]

I bought a 14 ProMax I thought about it. But then said doesn't matter. As fo Ipad and apple watch I thinking when I will.

 

[ctjack]

Just look around: every msrp is hiking. My lovely camry adds 500 bucks every season due to inflation.

 

[RRC]

Everything has increased, including raw materials and production costs.
The price has barely risen on iPhones since the iPhone X, so a small increase isn't the end of the world all things considered. Most people finance, are part of the upgrade program or buy through a carrier anyway...

OP - You say the number of unhappy Apple customers is growing, yet their market share keeps growing. So real world figures would suggest that customers are still happy with the products and services being offered. Yes they've not introduced any new platforms like they did with Apple TV, but what do you want them to give you? What services are missing that you'd want Apple to get involved with and offer customers?
Product wise, they've not introduced any "new" products, but they already have arguably the best devices on the market for the average consumer, rather than introduce more products I'm happy for them to improve what they already sell unlike certain companies who launch new products, and then drop support or cancel them a few years later.

 

[Andeddu]

Apple will suffer once households no longer have any discretionary capital to expend on wants rather than needs.

 

[eyoungren]

Apple doesn’t have new products in the recent years. To keep its revenue growth, Apple hikes price directly or indirectly. Even TV+, which only has a handful of shows, got a 40% hike. Though customers are still loyal, the numbers of unhappy customers are growing.

No one is forcing you to buy a new device each year.

I am typing this on a 2009 MacPro running Mojave. My work Mac is a 2015 MacBook Pro running High Sierra. My current primary phone is an iPhone 11 Pro Max.

Whether Apple raised prices this year, last year, or will in the future isn't really relevant to me at the moment.

 

[PeteBurgh]

Apple has been an expensive, luxury brand for decades. It's just who they are, and how they are positioned in the market. If you look at the historic cost of things like iBooks/PowerBooks/Macbooks/iMacs in inflation adjusted terms, they have always sold some very expensive products.

It does mean, however, that quality is paramount. For instance, in 2018 I paid a lot of money for the then-new iPad Pro - and I've never regretted it because it was (and is) a cool, innovative and useful computer that's lasted really well. I'd make a big splurge again if I saw something similarly cool. I'm less keen in buying, say, a 2022 Pro where neither the OS nor the design of the iPad has moved forward much.

Apple will suffer once households no longer have any discretionary capital to expend on wants rather than needs.

Perhaps, but recessions can work in counter-intuitive ways. Like the 'lipstick index' thing - some people will put off bigger purchases - cars, property, travel - and buy a new gadget instead. I'm not an economist though, I'm just guessing.

 

[RRC]

Apple will suffer once households no longer have any discretionary capital to expend on wants rather than needs.

People said this many times when global recessions have happened in the past, but they didn't really suffer. People will always buy tech, during COVID American's where given a payment from the government to help with living costs, and there where large numbers of people on this forum alone who were planning to spend that on the new iPhone at the time. And if they did suffer, it would be no more so than other manufacturers.

Like I say, tech is seen as a need in todays world.

 

[Shirasaki]

Most people finance, are part of the upgrade program or buy through a carrier anyway...

US only I assume.

 

[Andeddu]

Perhaps, but recessions can work in counter-intuitive ways. Like the 'lipstick index' thing - some people will put off bigger purchases - cars, property, travel - and buy a new gadget instead. I'm not an economist though, I'm just guessing.

That’s true however what’s happening in the economy has never happened in our own history. Never has so many people, along with the government, been so leveraged and also facing rising interest rates, runaway inflation along with a steep drop in economic output at one time.

There are no measures in place to deal with the issues we are facing and no easy fix. Normal people, such as the working and middle class, will simply not be purchasing discretionary items in the environment we are about to enter.

 

[aries81]

I am absolutely delighted.

 

[lkalliance]

To call it "price gouging" is ridiculous. If the price is too high, you have options: you can get a different brand of phone. You can just use the iPhone you have for an extra year or two, or extend it with the purchase of a replacement battery. You can chuck the phone entirely and just use your laptop and point-and-shoot camera. You've got options. That's not "price gouging", that's aggressively trying to find a more beneficial price point. More power to them.

What has happened to insulin in the last few years...that's price gouging. It's something I need to survive, I have no alternative, I can't make it at home or just choose to buy less or not at all, and there is little if any active R&D on the product to justify the absurd price hikes.

 

[monstermash]

Apple doesn’t have new products in the recent years. To keep its revenue growth, Apple hikes price directly or indirectly. Even TV+, which only has a handful of shows, got a 40% hike. Though customers are still loyal, the numbers of unhappy customers are growing.

Yes. I wish they would double or triple their prices. The higher the better.

 

[PeteBurgh]

will simply not be purchasing discretionary items in the environment we are about to enter.

I agree many people will need to cut back, including hiterto comfortable middle class people like myself. However, I'm not sure 'discretionary' properly captures the importance of smartphones, tablets and laptops in people's lives. For many they are essential tools, both for making money and completing any number of other daily tasks.

Perhaps Apple will get hurt because they sell expensive versions of these, but the low-end products (base model iPad, iPhone SE, MacBook Air) are generally quite competitive with their peers/competitors.

 

[BigMcGuire]

My family and I moved to iCloud years ago. I’ve been very happy with it. We now have 600GB of storage across my entire family (and my own storage).

What we get with Apple One is acceptable for the money spent.

I can’t get out of a nice sit down restaurant for under $70 for 2 of us easily anymore. A coffee shop run for 2 of us is rarely under $22 (and I get a black coffee) - we make our coffee at home and have for years now.

Am I happy about the price increase? No. Am I still happy with Apple? Yep.

As an American family - we’ve stopped going out to eat as often as we used to, we don’t go out and support local business as much as we used to (thanks to living costs significantly increasing this year), etc… Gas - Grocery - and Rent has SIGNIFICANTLY increased. Apple’s $2/mo is not going to break the bank but I’m not happy about it.

We heavily use iCloud, Apple TV, our Apple devices, and I don’t see that changing. As much as some people here on this forum love to spend their lives bashing Apple as the cause of all evil on this planet, I’m pretty happy with the company and what they’re doing.

 

[monstermash]

The only people who need to "cut back" on $20-$30/month expenditures are the ones who are foolishly living at or above their means (rather than well below), or those who suffer a significant setback, such as job loss. But given that employers are practically falling all over themselves to hire people at ridiculous rates, that shouldn't be much of a problem for very long....except for those who feel they are too good to have to work and feel entitled to live off the backs of those who do.

Local convenience store, in my low cost of living area, is hiring at $17/hr. I can't imagine they're all that picky about who they get either.

 

[Andeddu]

I agree many people will need to cut back, including hiterto comfortable middle class people like myself. However, I'm not sure 'discretionary' properly captures the importance of smartphones, tablets and laptops in people's lives. For many they are essential tools, both for making money and completing any number of other daily tasks.

Perhaps Apple will get hurt because they sell expensive versions of these, but the low-end products (base model iPad, iPhone SE, MacBook Air) are generally quite competitive with their peers/competitors.

They are discretionary items as Apple are reliant on selling new products to those who already own older products. In a consumer based economy, we have been taught that we can throw away perfectly useful older products for the next shiny new product which does the same thing slightly better.

When people enter the coming period of harsh austerity, they will hold onto their older products and make use out of them otherwise they will have to make compromises elsewhere.

We shall all have to cut back, some more than others, however, when push comes to shove, the last thing I need is to replace an iPhone 12 with an iPhone 14 when I will have far more pressing concerns.

 

[Mr_Risin_Mojo]

First of all it doesn't matter what we think, only what we do!
Sounds kinda dumb but that's how we roll... outrages voices all over the place but Apple still makes +%$
Maybe a better question would be "Do you understand the reason behind recent price-hikes and if so are you willing to pay them?"

 

[WoodTableFromIkea]

Who cares.

You'll keep paying, they'll keep rising the prices.

Move along.

 

[monstermash]

First of all it doesn't matter what we think, only what we do!
Sounds kinda dumb but that's how we roll... outrages voices all over the place but Apple still makes +%$
Maybe a better question would be "Do you understand the reason behind recent price-hikes and if so are you willing to pay them?"

I don't think the reason even matters. I mean, people who are gonna pay are gonna pay even if Apple just came right out and said "we're increasing prices to squeeze as much money out of you as possible. Like it or lump it, we don't care."

 

[TechRunner]

I'm less concerned with price than I am my perception of value. Looking to upgrade my 7th gen iPad, for example, I didn't find the new 10th gen, which I've been waiting for, to meet my perception of value for my dollars. If/when it goes on sale? Maybe. But in this economy, nearly all pricing is pretty bloated, regardless of what you're buying. It's not an Apple exclusive problem. Like others have alluded to, you have to suck it up and pay the prices for your needs. But you can still assign a perception of value to your wants and choose whether or not to buy.

 

[Andeddu]

I don't think the reason even matters. I mean, people who are gonna pay are gonna pay even if Apple just came right out and said "we're increasing prices to squeeze as much money out of you as possible. Like it or lump it, we don't care."

They will pay until they cannot pay due to lack of discretionary funding. We, as human beings, like to go to restaurants, the movies, day trips, holidays, purchase tech, etc… as the currency’s purchasing power weakens via inflation, and interest rates rise, and wages fail to rise in line with inflation, people will have less to spend and will have to forego certain creature comforts such as new tech.

For some fortunate people, they might replace one item whether it be an iPad, MacBook or iPhone per year, rather than replacing 2. For others, they may end up keeping their iPhones for 5-6 years and likewise with their other Apple products.

This will affect Apple’s bottom line and the company will be forced to downsize during the economic downturn, much like in all other industries, which will ultimately create an economic death spiral.

 

[webkit]

The overseas iPhone price hikes are largely due to currency value changes (stonger U.S. dollar) which you can't blame Apple for.

Other things like Apple TV+ may have been under priced in order to build a subscriber base and now that there are more subscribers (as well as more content), a price increase is not surprising. $6.99 ad-free is still less expensive than Disney+, HBO Max, Hulu, Netflix, Paramount+, etc.

 

[nStyle]

The flagship iPhone hasn’t raised in price in over 5 years in the USA so not sure what you’re talking about. The UK is on fire and has nothing to do with Apple.

The real question is who really needs an iPhone. Nobody. A very good phone nowadays costs about $300-500. I do think you get what you pay for still, the but returns are very diminishing these days. I would not be buying an iPhone overseas right now.

 

[Andeddu]

The overseas iPhone price hikes are largely due to currency value changes (stonger U.S. dollar) which you can't blame Apple for.

Other things like Apple TV+ may have been under priced in order to build a subscriber base and now that there are more subscribers (as well as more content), a price increase is not surprising. $6.99 ad-free is still less expensive than Disney+, HBO Max, Hulu, Netflix, Paramount+, etc.

I had free Apple TV+ for many months after buying a new phone and never found anything worth watching. I don’t know what it is like now but it is surely not offering the same value proposition as Netflix, Prime or Disney+.