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Apple says don't expect cheaper iPhones or MacBooks, big discounts anytime soon
Sentiment: NeutralHigh Priority
What Happened?
Apple warns customers not to expect lower prices for iPhones or MacBooks due to rising component costs and increased expenses related to AI. CEO John Ternus indicated that significant discounts are unlikely in the near future.
Key points
- Apple is facing rising memory-chip costs and increased expenses from its AI initiatives.
- The company raised the price of the iPhone 17 by $100 in the US and Rs 17,000 in India.
- Apple's CFO expects memory costs to continue rising into next year.
- The company may limit discounts during the holiday season due to these rising costs.
- Apple's gross margin is projected to fall to 45-46% in the December quarter.
Key insights
- Higher component costs could lead to fewer promotions, impacting consumer purchasing decisions.
- Apple's pricing strategy may affect its competitive position in the market.
- The focus on AI could shift resources away from consumer pricing strategies.
Impact on India
The price hike of the iPhone 17 in India reflects the broader trend of rising costs affecting consumers.
Why it matters
This information is crucial for consumers planning to purchase Apple products during the holiday season.
Entities
Apple· CompanyiPhone 17· ProductMacBook· ProductJohn Ternus· PersonKevan Parekh· PersonIndia· Country
Source
India Today
