Is MBP inventory piling up after the price increases?

[Mity]

My local Microcenter has 15 high-end M5 Max 128GB/4TB 16" Macbook Pros in stock. In the past, they rarely had this much inventory. I think it's because of the new $8,000!!! price tag but I'm not sure if it's just this location or whether it's happening elsewhere and at other retailers as well.

I was reading articles on RAM prices and they're expected to double from 2026 levels next year. I'm curious if this means people are just going to delay purchases/extend upgrade cycles or if Apple will eventually have to lower prices and earn less margin?

 

[maflynn]

I was reading articles on RAM prices and they're expected to double from 2026 levels next year. I'm curious if this means people are just going to delay purchases/extend upgrade cycles or if Apple will eventually have to lower prices and earn less margin?

The typical mindset when high inflation erodes price stability, is to buy now, because it will be expensive, however for luxury items, people just stop buying them. I think sales are slowing down and if apple increases prices again, I suspect sales will continue to slow down.

As for Apple reducing their 30% profit margin, one would hope, just keep the their products affordable. We'll see, as no one can really guess what will do in the future.

 

[Mity]

The typical mindset when high inflation erodes price stability, is to buy now, because it will be expensive, however for luxury items, people just stop buying them. I think sales are slowing down and if apple increases prices again, I suspect sales will continue to slow down...

I did my fair share of hoarding with Trump's tariffs last year, anticipating a trade war. I had purchased a CTO M4 Pro mini and CTO M4 MBA and while I didn't anticipate the war in Iran and the recent price spikes, the tariff fear purchases allow me to get by for a few years.

 

[JPack]

The buyers at MicroCenter probably got wind of the price increases and loaded up on inventory. Good for them too, since we now know M6 will be short lived and won’t have Pro/Max variants.

Those are not luxury items and the consumers buying 128/4T likely need it for work rather than fun.

 

[Mity]

The buyers at MicroCenter probably got wind of the price increases and loaded up on inventory.

Slight misunderstanding - there are currently 15 in stock but in the past it used to be around 5, not because people were buying them but because it was a low volume SKU. Most of their inventory used to be the base MX models and MX Pro models. So, I think what actually happened is that the orders they previously placed are not selling and inventory is piling up because of the price. That's just my guess of course. I'll be watching Apple earnings more closely this year to see what happens to unit sales.

 

[JPack]

Slight misunderstanding - there are currently 15 in stock but in the past it used to be around 5, not because people were buying them but because it was a low volume SKU. Most of their inventory used to be the base MX models and MX Pro models. So, I think what actually happened is that the orders they previously placed are not selling and inventory is piling up because of the price. That's just my guess of course. I'll be watching Apple earnings more closely this year to see what happens to unit sales.

But why would inventory increase? The only reason is MicroCenter buyers are adding more inventory. The inventory doesn’t add itself. Buyers carefully monitor inventory turnover across their portfolio and issue POs to obtain more stock.

 

[Mity]

But why would inventory increase? The only reason is MicroCenter buyers are adding more inventory. The inventory doesn’t add itself. Buyers carefully monitor inventory turnover across their portfolio and issue POs to obtain more stock.

Companies have supply agreements to buy x units ahead of time. I'm sure they have flex options to add to their orders in case of higher demand but I suspect this not to be happening given the new ridiculous pricing. Rather, I think what's happening is that sell-through has reduced, causing inventory to pile up.

 

[JPack]

Companies have supply agreements to buy x units ahead of time. I'm sure they have flex options to add to their orders in case of higher demand but I suspect this not to be happening given the new ridiculous pricing. Rather, I think what's happening is that sell-through has reduced, causing inventory to pile up.

Having worked in the same industry as Micro Center, I can confidently tell you that's not the case.

Given Apple's brand recognition and product line, their model is based on allocations rather than forward commitments. Apple stuff is guaranteed to sell. The situation is rather, does Apple give you the allocation and let you sell their stuff?

This is common sense as well. If you look at Best Buy, do they carry 128GB/4T models? No. And Best Buy is much, much larger. The only way these ultra high spec machines are ending up at Micro Center is because buyers at MC put in POs. And it makes sense because MC is targeted at special, more tech demanding customers.