Amid sharply rising memory and storage prices that are forcing many tech makers to hike prices, Apple is in a surprisingly strong position. While the company has raised prices on select iPad and MacBook models, its robust margins, new lower-priced lineup (including the MacBook Neo and iPhone 17e), and pricing power could make its products look more attractive relative to competitors — potentially driving market share gains and long-term ecosystem growth.
David Jagielski, CPA, for The Motley Fool:
[A]s other companies need to raise prices significantly due to rising memory and storage costs, Apple may not feel as much pressure to do so, given its strong margins. While it has announced price increases for some products, including the MacBook Neo, it has held off on raising iPhone prices for the time being. Other companies that don’t have Apple’s financial might may not have that same luxury. And as the gap between Apple’s products and lower-priced options diminishes, consumers may be more inclined to simply buy an Apple product.
Apple’s stock is up 15% since the start of the year, as concerns about rising prices don’t appear to be weighing on the business. While higher prices may negatively impact demand for some of its premium-priced products, there’s still hope that Apple might be able to capture greater sales on its lower-priced products and, in doing so, potentially attract more consumers into its ecosystem, leading to more future growth.
MacDailyNews Take: And there’s nothing that Mr. Market loves more than growth!
Please help support MacDailyNews — and enjoy subscriber-only articles, comments, chat, and more — by subscribing to our Substack: macdailynews.substack.com. Thank you!
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
Another point is that Apple product historically need less RAM to work than competidores with other OS’s