Apple price increases

[JoeWras]

These price increases are shocking to me and has me concerned, especially on things like the entry-level iPad (a 28.6% increase).

We are all shocked. 30% is what I was seeing on Lenovo too. In this sense, Apple won't stand out among the competition.

 

[Fermion]

We just bought laptops last year but I was curious about all of this memory stuff. I noticed on Costco.com they have a Dell all-in-one PC with 23.8" monitor, 16GB ram, 1TB SSD, Intel I7 for $899 after $400 off.

Doesn't seem crazy high to me?

 

[JoeWras]

We just bought laptops last year but I was curious about all of this memory stuff. I noticed on Costco.com they have a Dell all-in-one PC with 23.8" monitor, 16GB ram, 1TB SSD, Intel I7 for $899 after $400 off.

Doesn't seem crazy high to me?

That's similar to what we're paying for the Lenovo. I'm comparing year to year and the similar machine went up almost 30%.

Anything compared to Apple looks cheap.

 

[FD1000]

Apple's smartphone market dominance means they have a customer base that is more willing to pay more, so this is less of a big deal for them than it would be for other manufacturers.

That's true in the U.S., but not globally. Worldwide, Samsung sells more smartphones than Apple.

Apple, however, has an exceptionally loyal customer base. Many users stay within the Apple ecosystem for years and are willing to pay premium prices for new products. That kind of cult loyalty gives Apple more pricing power than most companies enjoy.

I have owned refurbished Pixels for 20% of Apple's, and they're good enough for most users. No matter if we have 1, 3, or 10 million, it will never be an Apple product. Same thing for refurbished PCs.

If I were Apple, I'd consider raising prices by 10% annually.

 

[braumeister]

That's true in the U.S., but not globally. Worldwide, Samsung sells more smartphones than Apple.

The difference is tiny (less than 1%) and fluctuates. In 2024 Apple sold more. Every other manufacturer is way down in the rankings.

 

[Mulligan]

We just bought two new iPad Airs about a month ago. So it appears we unwittingly saved ourselves $300.

We'll be replacing our iPhones next year, and from everything I read they will cost more to accommodate on-device AI (more RAM needed?)...

You missed out on all the hoops I had to go through to get the $299 price for base version of latest iPad 11. I decided Tuesday to go up to Best Buy and purchase it and get my $125 trade in for my iPad 9. Then Apple announces price increase. I checked and Best Buy said sale was through Friday, so thought I was good. Checked Friday morning to see if sale was still on. It was..but with a $75 higher price tag. Nice sale!
So I checked an seen Walmart were still $299, so I go to the store a mile away to buy one. Uhm the sale is only for online, ugh. So I drove back home ordered it online, and then an hour later picked it up at the same store I went to. But now I still have to go to Best Buy to get my $125 trade in credit. So instead it lowering purchase price of my iPad, I will use it when I get around to ordering a 98 inch tv before football season starts.

 

[explanade]

That's true in the U.S., but not globally. Worldwide, Samsung sells more smartphones than Apple.

Apple, however, has an exceptionally loyal customer base. Many users stay within the Apple ecosystem for years and are willing to pay premium prices for new products. That kind of cult loyalty gives Apple more pricing power than most companies enjoy.

I have owned refurbished Pixels for 20% of Apple's, and they're good enough for most users. No matter if we have 1, 3, or 10 million, it will never be an Apple product. Same thing for refurbished PCs.

If I were Apple, I'd consider raising prices by 10% annually.

As a shareholder, I try to pay attention to AAPL financials.

In the past year, iPhone has gained market share in several countries because other manufacturers have increased prices. iPhone 17 series has sold unexpectedly well for a typical annual update.

So the stock has done well in the past year.

But with these price increases, Apple didn't increase the price of the iPhone line.

Yet.

iPhone sales revenues are much bigger than any other Apple product line. So they haven't increased the prices of its cash cow yet.

Not sure they can hold off price increases when they announce the new models, including a folding model, later this year.

 

[tutan]

Will upgrade to the foldable phones when they come out hopefully this year but most likely will have to pay for the price increase of the memory chips.

 

[Midpack]

These price increases are shocking to me and has me concerned, especially on things like the entry-level iPad (a 28.6% increase).

If you haven’t read already FWIW. I tend to believe it’s true.

Apple is significantly increasing prices on many of its devices due to a surge in demand for memory and storage chips. This demand is primarily driven by AI data centers, which require large quantities of these components to function effectively. As a result, suppliers are prioritizing AI companies, leading to a shortage for consumer electronics.

Apple's CEO, Tim Cook, has indicated that the company can no longer absorb these increased costs and must pass some of them onto consumers. The electronics industry is facing unprecedented challenges, with component prices rising rapidly. This situation is expected to continue, affecting not only Apple but also other tech companies.

 

[explanade]

Will upgrade to the foldable phones when they come out hopefully this year but most likely will have to pay for the price increase of the memory chips.

I'm wary about buying into a 1st gen design, especially one that carries a hefty price premium.

There is uncertainty about the reliability of the folding design and the software UI of the apps when the screen is unfolded.

They are also reported making compromises like maybe 2 cameras instead of the 3 in the Pro models.

 

[Midpack]

^^^ plus the $2000 estimated price.

 

[tutan]

I'm wary about buying into a 1st gen design, especially one that carries a hefty price premium.

There is uncertainty about the reliability of the folding design and the software UI of the apps when the screen is unfolded.

They are also reported making compromises like maybe 2 cameras instead of the 3 in the Pro models.

Samsung has been selling foldables for years. Apple hopefully has learned something from Samsung and will not release them until they are truly ready.

 

[JoeWras]

I have a Samsung foldable for 3 years now. It is surprisingly reliable. And I pound the crap out of it, probably going through a fold cycle 20 times a day. I'm sure Apple will be fine.

 

[oiseux]

If you notice and compare the data, most of these price increases are much higher than the amount of increase in costs in storage (flash) and memory (the OEM/wholesale prices are widely tracked by certain firms), even when you account for margin.

What also may be happening are that annual purchase contracts have expired, inventory bought/stockpiled at lower prices is being depleted and price increases (including any tariffs) are now flowing through. But also, and perhaps more importantly, the phone and electronics manufacturers have a fixed allocation of critical parts. They need to maximize revenue to offset reduced volume, and so they are pricing the higher end models at a large premium to compensate.

 

[braumeister]

But we always want the latest and greatest, don't we?

A Red Delicious apple will cost you well under a buck, while a Honeycrisp will generally be well over two bucks.

 

[explanade]

If you notice and compare the data, most of these price increases are much higher than the amount of increase in costs in storage (flash) and memory (the OEM/wholesale prices are widely tracked by certain firms), even when you account for margin.

What also may be happening are that annual purchase contracts have expired, inventory bought/stockpiled at lower prices is being depleted and price increases (including any tariffs) are now flowing through. But also, and perhaps more importantly, the phone and electronics manufacturers have a fixed allocation of critical parts. They need to maximize revenue to offset reduced volume, and so they are pricing the higher end models at a large premium to compensate.

There are reports that the RAM and NAND makers are not honoring existing contracts and requiring buyers to commit to 5-year contracts at higher prices.

So they lock in higher prices rather than let market forces cause them to drop.

Because the AI companies have signed these huge contracts, they don't have to worry about revenues plunging so they may be playing hardball with other companies, including Apple.

 

[BruinBones]

My wife and I have both been using MacBook Pros for the past 20 years. Her favorite color is pink, and she is willing to downgrade to the new MacBook Neo in the color of blush (a light pink). So I got her one this week during Prime week at $110 off the current price, which is expected to rise soon.
I, on the other hand, continue to update my 2012 MBP with open core legacy’s macOS Sequoia.

 

[explanade]

May want to upgrade just to get the latest security updates.

Depending on a computer going on 15 years is a lot to expect.

I know that some software, like Turbotax, will stop running on old OSes. That was the case with my 2017 iMac, which is running Ventura, 13.7.8.

I have a newer Mac, 2021 MacBook Pro, so I had to install Turbotax 2025 on that. All the older versions are on my iMac.

 

[aja8888]

But we always want the latest and greatest, don't we?

A Red Delicious apple will cost you well under a buck, while a Honeycrisp will generally be well over two bucks.

Cosmic Crisp for me, and about $1.74/pound. (Chromebook user here...)

 

[explanade]

Apple stock is up over $13 today. It is higher than when it announced these price increases and the stock fell like $10-12 in one day.

Only news I see is that they are going to produce 10 million foldable iPhones and that it may be priced around $2500!

So the market likes higher prices if they think high-priced goods will sell well.

 

[audreyh1]

Apple stock is up over $13 today. It is higher than when it announced these price increases and the stock fell like $10-12 in one day.

Only news I see is that they are going to produce 10 million foldable iPhones and that it may be priced around $2500!

So the market likes higher prices if they think high-priced goods will sell well.

Yes, I noticed a sudden recovery from the price increase sell off.

Apple will announce earnings near the end of this month, and there is often a run up during earnings month, so that may be helping.

 

[Al18]

In October, 2021 a new Apple 14 inch MacBook Pro M1 Pro (10-core CPU), 16GB RAM, 1TB SSD cost $2,499

In July, 2026 a new Apple 14 inch MacBook Pro M5 (10-core CPU), 16 GB RAM, 1 TB SSD costs $1,999

The new, more powerful laptop is $500 cheaper!

 

[disneysteve]

In October, 2021 a new Apple 14 inch MacBook Pro M1 Pro (10-core CPU), 16GB RAM, 1TB SSD cost $2,499

In July, 2026 a new Apple 14 inch MacBook Pro M5 (10-core CPU), 16 GB RAM, 1 TB SSD costs $1,999

The new, more powerful laptop is $500 cheaper!

Tech is one area where prices (or at least value) consistently decline. Tech gets cheaper and cheaper for equivalent products.