So about that sub $1000 Apple laptop. Guess analysts and rumors proved to be wrong this time aroud.

Discussion in 'MacBook Air' started by Appurushido, Oct 30, 2018.

  1. Appurushido macrumors 6502

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    #1
    Finally the MacBook Air gets the retina display that is long overdue, but starts at $1199. Even the base, older non-Retina, starts at $999. You can say the older version is sub $1K even with brick and mortar discounts, but it's not the new sub $1,000 Apple laptop most analysts or rumors have predicted.

    Still pricey, but a well deserved upgrade. Those on the fence, it's probably better just to spend the extra $100 for the machine if you don't need Touch ID. Just my two cents.
     
  2. unagimiyagi macrumors 6502a

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    #2
    What is clear is that Apple has gone even more upmarket and luxury. This is even true after adjusting for inflation. It also is even more amazing considering the trend of computers to come down in price over the years as they have become increasingly commoditized items.
    People have no problem with this if there is something materially better about their products or new innovations. Even by apples own standards, their new designs aren’t even new at all. So there is no reason to justify price hikes for pure aesthetic or design reasons.

    So I can not think of any conceivable reason for the increase in price across the board for their iPhone, iPads, and macs other than increasing profit margins.
     
  3. Earl Urley macrumors 6502

    Earl Urley

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    #3
    The prices are also supposed to compensate for tariffs..
     
  4. unagimiyagi macrumors 6502a

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    #4
    Price hikes might be trade war consequences for China but not the USA?
     
  5. Ma2k5 macrumors 68020

    Ma2k5

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    #5
    All those so called accurate analysts have been wrong about so many things so many times - people just remember the things they got right. If you look at all their claims over the past 5 years, they have a less than 50% accuracy rate.
     
  6. Earl Urley macrumors 6502

    Earl Urley

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    #6
    Most of the Mac laptops are built in China, and their parts are made there so Apple will have to pay the tariffs
     
  7. smallcoffee macrumors 68000

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    #7
    I don’t think that’s the case. And even if it is, that’s a good reason to encourage production in countries outside of China, such as, oh idk, the United States?
     
  8. Ma2k5 macrumors 68020

    Ma2k5

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    #8
    I wonder how much they would have cost if it wasn’t recycled materials that they used :D
     
  9. Howard2k macrumors 68020

    Howard2k

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    #9

    Price and cost are not typically directly correlated.
     
  10. sracer macrumors G3

    sracer

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    #10
    Well, we'll see soon enough when the tariffs are lifted. If Apple doesn't lower the prices then we have our answer.
     
  11. smallcoffee macrumors 68000

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    #11
    Probably would have been cheaper, but we pay for the cost either directly or indirectly. Everything being cheap is just loans taken out on future generations.
     
  12. Ma2k5 macrumors 68020

    Ma2k5

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    #12
    Price and cost are directly related - just not the only factor in determining total cost. You’d be silly to think that cost doesn’t directly impact prices..
     
  13. Audit13 macrumors 601

    Audit13

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    #13
    Apple seems to know their target audience and many people I know have no problem with Apple pricing.

    Apple hasn't competed on price and won't in the near future from what I see. I also don't see Apple wanting to turn their products into commodity products that resemble Windows products.
     
  14. Howard2k macrumors 68020

    Howard2k

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    #14
    No. The price for the MBA is set by Apple based on the most they believe that people will pay for the MBA. It's not based on the cost of the MBA.

    They of course look at the cost too, because if the cost is higher than the price there's a significant issue. They still need to ensure that the profitability is sensible, but they don't create the price of the MBA by saying "Well it costs $1,299, and we want to make $100 per unit". That's not how prices are set, typically.
     
  15. Ma2k5 macrumors 68020

    Ma2k5

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    #15
    You need to look up direct vs indirect costing to price, because material cost isn’t indirect.

    Markup/margin due to supply/demand is another factor, it doesn’t mean you can ignore the cost of components or consider them “indirect”.

    All companies have a target margin they aim for on each product, to justify the R&D, it’s not some finger in the air exercise.
     
  16. oldtime macrumors 6502

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    #16
    I mean, they could theoretically (and I would add logically) drop the 12" MB price to $999 before xmas and there you go. AFA why they wouldn't do that now, it would cannibalize some of the new MBA's sales.
     
  17. QCassidy352 macrumors G4

    QCassidy352

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    #17
    Prices are crazy. ASP must be way up across every apple product line. iPad pro starting at $800 (and going up to $1800!) is nuts. $1200 for the entry level laptop is too (not counting the 2015 junk they won't kill).
     
  18. Howard2k macrumors 68020

    Howard2k

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    #18
    First of all, my initial statement was more vague than it could have been. Price and cost are always correlated as part of due diligence. I sort of figured that was obvious, I think we both agree that it is, but I should ensure that you're not misunderstanding. The point I was trying to make was that Apple didn't say "The MBA costs us $x to make, we have a target margin of y%, therefore the price shall be $z, as a function of $x and y%". I believe that's what you were trying to infer, but since I need to clarify my own post, I should give you the opportunity to clarify yours too.

    So for the avoidance of doubt: Apple didn't say "The MBA costs us $x to make, we have a target margin of y%, therefore the price shall be $z, as a function of $x and y%".

    Therefore, a reduction in the cost of aluminium should not affect the price. A reduction in the price of aluminium would reduce the price if the price was set based on the cost. Which I think is what you're stating is the case. I'm stating that's not correct.


    No I don't.


    I didn't say cost could be ignored. I actually explicitly stated that cost does need analysis to ensure profitability.

    I didn't say it was a finger in the air exercise.
     
  19. Ma2k5 macrumors 68020

    Ma2k5

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    #19
    Maybe we are misunderstanding each other.
     
  20. DVD9 macrumors 6502a

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    #20
    NO

    All Apple products were exempted from tariffs.

    Tim Cook is sucking every last drop of blood out of you.
     
  21. Bazza1 macrumors member

    Bazza1

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    #21
    Price hike an effort to get us cheapo lowlifes to finally buy into replacing our preferred tech with Apple's preferred tech - an iPad Pro. They are still desperately trying to kill off the Air as the de facto 'coffee shop office' device - the MacBook has bombed on that front - with the iPP. Hence also the USB-C port on the iPP.

    Meanwhile, perfectly aware of the likelihood of a new Air this month (and seeing what they've done to the MacBook range so far and what 'features' they might foist upon us), I opted in July to update my 11" to a 2017 13" from their refurb store, upgrading both my RAM and storage - and paying $CDN270 less than a new 2018 base model. Couldn't be happier with the decision.
     

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20 October 30, 2018