How Low Will Apple Go On Price?

It seems to me that after consumers have gotten used to cheap then it would be hard to raise Mac and iPod prices when it becomes necessary.

"company’s"?

Is Business Week being staffed by illiterate teenagers?

Company's would gladly accept?

Is Business Week staffed by illiterates? I doubt it.
Instead, I'll guess there's less time and money for copy editing.

To "The English Language":

Are you the Grammer Police? What, you can't understnad the story's "message" because of the word "company's".

Why don't you buzz off and go make fun of some foreigner's accent.

"It seems to me that after consumers have gotten used to cheap then it would be hard to raise Mac and iPod prices when it becomes necessary."

Exactly. A major price decrease infects the whole product line well into the future. I do, however, expect Apple to price "fun" consumer devices like the tablet extremely carefully to try and offer value. Something I advocate, one way for them to lower prices, is a one time "cash for clunkers" program. Apple has the free cash to absorb the hit, that is to offer eye-popping one time subsidies for anyone bringing in an XP or earlier Windows machine they still use on a daily basis. Converts plus publicity.

Bringing down Mac prices is a smart move on Apples part I think. They have such a diverse product line that they can afford to lower Mac prices now. They have to be carful not to go to cheap though, they don't want to get in a price fight with Dell and the others for cheap customers whom only shop based on price. They need to get to the customers whom are willing to pay a little bit more for quality.

Peter, you seemed to have used last year's conference call transcript; that's when Oppy said going from 34 to 30 on margin and Cook talked about umbrellas. Last night, Oppy said going from 36 to 34 on margin, and Cook/Oppy talked about providing "greater" and "ever increasing" value to their customers.

What was Oppy/Cook talking about last year? Don't know exactly but it was probably the iPod touch, MacBooks, and possibly $99 iPhone. What are they talking about now? Don't know but we'll see, possibly as soon as the Apple Store comes back online.

To Econamike:

Based on what you wrote, I can see why someone expecting high standards from a professional publication would touch a nerve for you... "good enough" isn't, despite millions of people settling for such. It's appalling what passes for copy-editing these days (not just here but for many "professional" organizations). I surely won't pay for poor communication skills if the day comes where all news is behind a paywall (as, in a separate thought, Murdoch seems to think it will be.)

As an "on topic comment":

I'm sure part of the announcement of lower margins is Apple's continued under-promise/over-deliver, but I also do think there will be a hit on margins. Apple has been hinting to this for a while; in hindsight, it's probably going to be one of those things where the roadmap is right in front of us, we just don't see it.

What's coming up in the competitive landscape (an incomplete list, of course)?

* droid/Verizon device attacks
* AT&T failures/Verizon network attacks
* other Android players
* Microsoft Stores
* some form of "right" netbook/cheap ASP PCs
* Holiday market
* Discretionary spending still under intense pressure as unemployment in the US (and elsewhere) continues to rise, the consumer mortgage situation is still not bottomed out, and significant turmoil still expected to surface in the commercial real estate food chain (which may lead to more job losses in the US).

Known or suspected Apple responses:

* suspected tablet/larger-than-iphone-smaller-than-macbook portable device
* expanded iPhone markets
* (now) lower pricing of existing models?
* (speculated) multiple devices in the pipeline at lower price points (though, if typical, Apple's margins on new kit are designed to be high)

What does it all mean? Wish I knew, but new devices are more likely than widespread and significant price cuts. "Value"? Apple has, time and again, proven that for Apple, value != price; look for some other measurement than price to be the overriding result of Apple's efforts.

Not low at all, would be the answer. Apple didn't cut a dime from the cost of the Mac Mini, iMac or MacBook. The MacBook especially seems incredibly high priced in the current marketplace.
Typical.
Looks like we need a "Desktop Hunters" series of ads from Microsoft to get the price lowered on the Mini and iMac.

To "Long Time Apple Watcher":

I am more interested in accurate facts than in grammer.

I think you made my point with your statement "I surely won't pay for poor communication skills..."

Are you telling me that you didn't understand the story (it wasn't "communicated") because of a single apostrophe?

If that's the case, you need help.

Now run along and go make fun of some foreigner with an accent.

It's now "companyies" for some reason. Close, but not there yet.

To "Econamike"

As a long-time journalist, every error — from spelling to grammar to fact — reduces your accuracy and calls into question everything else you produce. If you can't spell or use proper language, how can you be trusted to get more complex issues correct?

To "Econamike"

As a long-time journalist, every error — from spelling to grammar to fact — reduces your accuracy and calls into question everything else you produce. If you can't spell or use proper language, how can you be trusted to get more complex issues correct?

Oh, and now it's "companyies" now.

Econamike:

"Why don't you buzz off and go make fun of some foreigner's accent."

"Now run along and go make fun of some foreigner with an accent."

Why do that when I can shoot fish in a barrel here with you and your repetitive "comebacks" and a demonstrated lack of understanding that the point is twofold; the grammar errors themselves (which might be excused by the fact this is a blog and possibly not run through the same processes as "content") and the potential lack of "attention to detail" (which is not a failing of just this publication)? Consistent or repetitive lack of attention to detail leads to "inaccurate facts" through typos, single source information, and incomplete analysis.

Of course, critical thinking on the part of the receiver is as important an element of communication as correctly imparting information by the giver. Too bad awareness of that fact and presence of that behavior are missing far too often in our "the rules don't matter any more", "blogged today so it must be true", "the quality of the source doesn't matter" screamfest we call internet news these days.

Anyway, again, on topic...

Price cuts aren't there yet based on today's announcements (and in fact, appear to be the reverse, unbundling features such as the remote from the iMac, without a change in base pricing). Value? There it is, though, with the larger monitors and improved CPUs, also on the iMac.

Magic mouse? Same price as old mouse, but possibly nifty new features.

MacBook? The song remains the same with updated features and a consistent price.

The author may not have to pay on the dinner bet after all...

Apple does not need to reduce prices if their products and services continue to be so so desirable. The services Apple supplies through iTunes to all its products are extremely sticky and it will take competitors years to catch up or better these services.

"I am more interested in accurate facts than in grammer"

Apparently you're not interested in spelling, either

Apparently I was told it's because the release of the windows7 that made apple decrease prices, is this true :O? (althought I think it's a load of rubbish)

iwant to be bye apple 3gs i phone, how can i purchases it. and its purchases how many dollar? pls acknowledge as soon as possiable.