Concerning the MacBook Neo, Francisco Jeronimo, IDC vice president for client devices, said: “The $100 increase takes the entry model from $599 to $699, close to a 17% increase, one of the sharpest percentage hikes in the announcement, and it hits one of Apple’s best-selling, most price-sensitive laptops right as it is winning share. Raising the price of its fastest-selling entry product indicates that Apple believes demand will stay strong, given the value the product offers. It also signals Apple is willing to give up some unit growth at the bottom of the range to defend margin, and it widens the gap the Neo had just closed against Windows entry-level machines.”
The fact of the matter is that consumers are effectively paying an inflationary fee for the benefit of the ongoing global AI rollout. That rollout is already consuming vast quantities of investor cash, despite the shaky business plan of existing incumbents.
“We have never seen a component price increase this much, this quickly,” Apple said in a statement. “We have shielded our customers from these increases so far, but we have now reached a point where we need to begin raising prices on a number of products, including today’s increases for iPad and Mac.”