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I think you are wrong. Apple has neither lost it's pricing power nor it's ability to move product. Apple is making a lot of money from subscription these days and hence they can afford to sell the hardware for lower all while making more than before with their subscription model by getting you in their ecosystem. It's a customer acquisition cost and it's worth it in the long run.
And yes, economy isn't that great and people getting priced out of housing market for example, but it's not bad enough yet imo where people are being priced out of buying relatively cheap tablets. Recent boom is Apple's profit has a lot to do with subscription and paid services, hence selling more hardware will be more than made up for later by people paying for storage and other subscriptions they introduced and will keep introducing.
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Oct 15, 2022 03:50 PM
3,657 Posts
Joined Nov 2012
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This is a game now. The price keeps going down if you wait. If you wait, the stock will be gone at some point. Good yield management strategy for retailers.
Bottom line is Apple has lost some of the pricing power of the past with demand destruction.
It's called dump inventory before the new devices are released, and every major manufacturer does this at the end of the cycle.
It's called dump inventory before the new devices are released, and every major manufacturer does this at the end of the cycle.
Apple is not like other major manufacturers and this isn't like previous years.
Apple has always had pricing power for previous gen even after the new devices were released and there wasn't much in the inventory of previous generation at the end. They planned it well.
But the discounts for this one started long before with no end in sight to inventory (available at perennial discount prices at all mass market stores), hence the game.
In general, almost all Apple hardware is being discounted these days. Even Smartphones are being discounted via carrier deals. The iPhone 14 launch was a bit of a dud as there weren't compelling reasons to upgrade.
There is a tech recession at the moment and Apple topline growth is under pressure. With stock down along with other tech 24% YTD, they need to move the piling up inventory. It is a bit of a buyer's market at the moment.
Our community has rated this post as helpful. If you agree, why not thank tronzer
Quote
from WingsOfF
:
Apple is not like other major manufacturers and this isn't like previous years.
Apple has always had pricing power for previous gen even after the new devices were released and there wasn't much in the inventory of previous generation at the end. They planned it well.
But the discounts for this one started long before with no end in sight to inventory (available at perennial discount prices at all mass market stores), hence the game.
In general, almost all Apple hardware is being discounted these days. Even Smartphones are being discounted via carrier deals. The iPhone 14 launch was a bit of a dud as there weren't compelling reasons to upgrade.
There is a tech recession at the moment and Apple topline growth is under pressure. With stock down along with other tech 24% YTD, they need to move the piling up inventory. It is a bit of a buyer's market at the moment.
I think you are wrong. Apple has neither lost it's pricing power nor it's ability to move product. Apple is making a lot of money from subscription these days and hence they can afford to sell the hardware for lower all while making more than before with their subscription model by getting you in their ecosystem. It's a customer acquisition cost and it's worth it in the long run.
And yes, economy isn't that great and people getting priced out of housing market for example, but it's not bad enough yet imo where people are being priced out of buying relatively cheap tablets. Recent boom is Apple's profit has a lot to do with subscription and paid services, hence selling more hardware will be more than made up for later by people paying for storage and other subscriptions they introduced and will keep introducing.
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The market is also flooded with stolen Apple products making them extremely cheap to pick up at places like offerup, CL.. I just bought an M2 MacBook Pro from a crackhead on CL for 400 bucks. Why would I ever pay full price?
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And yes, economy isn't that great and people getting priced out of housing market for example, but it's not bad enough yet imo where people are being priced out of buying relatively cheap tablets. Recent boom is Apple's profit has a lot to do with subscription and paid services, hence selling more hardware will be more than made up for later by people paying for storage and other subscriptions they introduced and will keep introducing.
110 Comments
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Bottom line is Apple has lost some of the pricing power of the past with demand destruction.
Apple has always had pricing power for previous gen even after the new devices were released and there wasn't much in the inventory of previous generation at the end. They planned it well.
But the discounts for this one started long before with no end in sight to inventory (available at perennial discount prices at all mass market stores), hence the game.
In general, almost all Apple hardware is being discounted these days. Even Smartphones are being discounted via carrier deals. The iPhone 14 launch was a bit of a dud as there weren't compelling reasons to upgrade.
There is a tech recession at the moment and Apple topline growth is under pressure. With stock down along with other tech 24% YTD, they need to move the piling up inventory. It is a bit of a buyer's market at the moment.
Our community has rated this post as helpful. If you agree, why not thank SKV4m
Our community has rated this post as helpful. If you agree, why not thank tronzer
Apple has always had pricing power for previous gen even after the new devices were released and there wasn't much in the inventory of previous generation at the end. They planned it well.
But the discounts for this one started long before with no end in sight to inventory (available at perennial discount prices at all mass market stores), hence the game.
In general, almost all Apple hardware is being discounted these days. Even Smartphones are being discounted via carrier deals. The iPhone 14 launch was a bit of a dud as there weren't compelling reasons to upgrade.
There is a tech recession at the moment and Apple topline growth is under pressure. With stock down along with other tech 24% YTD, they need to move the piling up inventory. It is a bit of a buyer's market at the moment.
And yes, economy isn't that great and people getting priced out of housing market for example, but it's not bad enough yet imo where people are being priced out of buying relatively cheap tablets. Recent boom is Apple's profit has a lot to do with subscription and paid services, hence selling more hardware will be more than made up for later by people paying for storage and other subscriptions they introduced and will keep introducing.
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