CNN: Apple continues its year of price hikes

Discussion in 'Apple, Inc and Tech Industry' started by AidenShaw, Nov 1, 2018.

  1. AidenShaw, Nov 1, 2018
    Last edited: Nov 1, 2018

    AidenShaw macrumors P6

    AidenShaw

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    #1
  2. G5isAlive macrumors 6502a

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    #2
    Nothing excites name calling more than price discussions... get the popcorn ready
     
  3. AidenShaw thread starter macrumors P6

    AidenShaw

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    #3
    https://www.cnn.com/2018/11/02/tech/apple-iphone-metrics-problem/index.html

     
  4. T'hain Esh Kelch macrumors 601

    T'hain Esh Kelch

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    #4
    If Apple actually innovated in the Mac area, and created a logical line of machines, and set proper prices, they could spur growth. They could even go into support of gaming, which would bring a whole new area of buyers in.

    Cook's Apple is a very strange one. It has been all about profit, and now they've likely hit that wall, they run around like headless chickens and have no idea what to do.

    You obviously haven't been to PRSI.
     
  5. vkd macrumors 6502a

    vkd

    Joined:
    Sep 10, 2012
    #5
    "Finally, there are the investors to worry about. Most people who need personal computers already own them, and Apple makes money off of the regular upgrades. To make up for any flattening or falling sales, Apple can use price increases to trade volume for revenue and make shareholders happy."
     
  6. AidenShaw thread starter macrumors P6

    AidenShaw

    Joined:
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    #6
    That's a very risky tactic.

    If the higher prices further depress sales, then both volume and revenue will drop.

    Apple has just announced a Mac Mini with a $4200 top price. How many will they sell? If Apple raises the price to $5200, will the added margin help or will the sales volume drop and negate the better margin? How about a $6200 Mac Mini?

    The point is that price increases can reduce volume, so "trade volume for revenue" makes a very risky assumption about the price sensitivity of their market.
     
  7. alent1234 macrumors 603

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    Jun 19, 2009
    #7

    it was worse with steve jobs
     
  8. maflynn Moderator

    maflynn

    Staff Member

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    Boston
    #8
    If people stopped buying the higher priced items, Apple would be forced to change course. People complain about the high priced, but many of them march right over to the apple store and buy a 1,200 dollar phone. I'm looking in the mirror when I say that, because I'm just as guilty as the next guy/gal pissing and moaning about the price but then goes and buys a new MBP
     

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7 November 1, 2018