On Apple’s Newest Products Price Hike

pepi-stojanovski-509192-unsplash
Photo by Pepi Stojanovski on Unsplash

From: Foad Afshari on Twitter.

There is a lot of consternation regarding prices of products going up – and don’t get it twisted – Apple isn’t the only one raising prices. Everyone is. Few people making arguments really think through the worldwide dynamics of creating and delivering these products.

Intl. trade wars, wage increases in countries especially China, sourcing raw materials humanely, inflation, currency fluctuations, advancements in the technology being produced, rapidly rising costs of transportation, costs of taking large scale manufacturing green, etc.

It of course sucks that prices are going up and the latest and greatest isn’t available to the masses, but there are so many moving parts. Apple’s ASPs go up but it isn’t directly increasing margins in every case.

It is why I assume Apple is partly keeping older products in the line, while improving perf. on them. I don’t think they are happy to have older products on sale. It increases all sorts of costs. Just because prod. costs might go down over time, does not mean support costs do.

Navigating these waters at the scales these companies are, is beyond bonkers, even if you have the best people working for you. You can’t control everything and when you try to, it adds it own complexity. Unfortunately, consumers get hit no matter what.

Great take. I had to share it here.

Leave a Reply

Up ↑

%d bloggers like this: