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Apple continues its year of price hikes

When the $1,000 iPhone X was announced last year, Apple watchers...

Posted: Nov 1, 2018 1:00 PM
Updated: Nov 1, 2018 1:00 PM

When the $1,000 iPhone X was announced last year, Apple watchers gasped: Can the company possible get away with charging that much for a phone?

Yes, it can.

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The sticker shock has already worn off, and Apple has gone on to hike up the prices of most of its product line. Last month, it raised the prices of its entire iPhone line, and this week it did the same with even more products.

The smaller iPad Pro now starts at $150 more than the previous generation. The MacBook Air is $200 more, the Mac Mini is $300 more, and the Apple Pencil is $30 more.

"They're looking to differentiate and say we don't want to compete with everyone at the lower end, we want to sell something unique," said Wayne Lam, an analyst at IHS Markit.

There are practical reasons for the price increases. Some of the components inside the devices simply cost more to produce. Apple is also trying to cram in exciting — but pricey — new features that may or may not be necessary, such as a fingerprint sensor on a laptop.

But for the MacBook air and Mac Mini, it's also a strategic decision by Apple to try to differentiate itself in a crowded and aging PC market. Most of the computers are fairly interchangeable on the Windows side, said Lam, and many compete by lowering prices for their similar products. Apple seems to be going the other way, raising prices to more "aspirational" amounts and becoming a luxury brand.

The iPad Pro may have had the most surprising price change of the bunch. The new device starts at $799, but a fully tricked out 12.9-inch iPad Pro with a terabyte of storage and cellular connection costs $1,899.

That could be a sign of the future of mobile computing. Powerful tablets have the potential to replace even more laptop sales. But it is also possible tablets could lose out to the increasingly giant phones. Apple continues to make some design choices that keep the two product lines separate, such as not adding a touch screen to its laptops — but that could change down the road.

"That's an area of their product line that we don't quite know where the end game is for them, whether they're going to keep it two separate platforms," said Lam.

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.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 156868

Reported Deaths: 3851
CountyCasesDeaths
DeSoto10409104
Hinds10279202
Harrison7313112
Jackson6566128
Rankin5887106
Lee529496
Madison5014107
Forrest389786
Jones369088
Lauderdale3594147
Lafayette338253
Washington3246108
Lamar297850
Oktibbeha252362
Lowndes247064
Bolivar244384
Panola232653
Neshoba2249121
Marshall222851
Leflore208591
Monroe206778
Pontotoc204231
Lincoln197366
Sunflower192655
Warren180258
Tate177751
Union171926
Copiah167940
Pike165359
Yazoo160140
Scott159430
Itawamba157635
Alcorn155628
Pearl River155368
Coahoma152743
Simpson152653
Prentiss151331
Adams144752
Grenada143345
Leake139744
Holmes133461
Covington128639
Tippah128430
George128325
Winston125526
Hancock124341
Wayne121323
Marion119446
Attala119334
Tishomingo112443
Chickasaw109432
Newton108229
Tallahatchie98127
Clay94727
Clarke93653
Jasper85223
Stone80615
Calhoun78713
Walthall77629
Montgomery76926
Carroll74115
Lawrence73814
Smith73216
Yalobusha73128
Noxubee72717
Perry68326
Tunica62619
Greene61522
Jefferson Davis59017
Claiborne58916
Amite56615
Humphreys54719
Benton50018
Quitman5007
Webster46714
Kemper45018
Wilkinson40522
Jefferson37112
Choctaw3617
Franklin3555
Sharkey32417
Issaquena1204
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Alabama Coronavirus Cases

Cases: 252900

Reported Deaths: 3638
CountyCasesDeaths
Jefferson33526501
Mobile20103365
Madison13723151
Tuscaloosa13366154
Montgomery12552236
Shelby1079677
Baldwin9051137
Lee787266
Morgan696451
Calhoun6598121
Etowah656167
Marshall647357
Houston541038
DeKalb498137
Cullman462443
St. Clair441956
Limestone440445
Lauderdale426754
Elmore421164
Walker3735111
Talladega370157
Jackson340423
Colbert332042
Blount306140
Autauga281842
Franklin257434
Coffee250015
Dale239054
Dallas231532
Chilton228939
Russell22663
Covington225034
Escambia202331
Tallapoosa187291
Chambers182750
Pike161514
Clarke161019
Marion144736
Winston137523
Lawrence133436
Pickens126518
Geneva12508
Marengo123424
Bibb120418
Barbour118911
Butler118642
Randolph105522
Cherokee105124
Hale98131
Fayette94616
Washington93219
Clay92824
Henry8896
Monroe83011
Lowndes80929
Cleburne78814
Macon75522
Crenshaw72230
Bullock70119
Lamar7018
Conecuh70014
Perry6916
Wilcox64818
Sumter58622
Greene43518
Choctaw43114
Coosa3664
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