Apple raises prices on the new MacBook Air, iPad Pro
Apple raises prices on the new MacBook Air, iPad Pro
On Tuesday, he presented two more expensive versions of his Mac personal computers and a redesigned iPad, with the goal of revitalizing mediocre sales of PCs and tablets with higher-priced devices, as he did to strengthen his core iPhone business.
The new MacBook Air marks the first complete design update of Apple's most popular laptop model since 2010. It has a high-resolution Retina display, narrower screen edges and Touch ID, while measuring 10% thinner and a quarter of pound lighter than the current version. .
The changes have a cost: the new MacBook Air starts at $ 1,199, compared to $ 999 for the existing model.
the new laptop made its debut Along with an updated version of Apple's small Mac mini desktop computer with improved processors, which is five times faster, Apple said. That starts at $ 799, compared to $ 499 for the current version.
And Apple showed new iPad Pros with narrower screen edges and facial recognition technology, with two different sizes starting at $ 799 and $ 999.
Attendees tested the new iPad Pro at an Apple launch event in Brooklyn, New York, on October 30, 2018.
Photo:
Shannon Stapleton / Reuters
The announcements amplified Apple's recent strategy of increasing total revenues by raising prices. A year after raising the price of its flagship iPhone to $ 999, the company is raising the prices of the new versions of the MacBook Air by 20%, the Mac mini by 60% and the iPad Pro by approximately 25% .
Although some older models will stay, the new models should increase the average sales prices of Macs and iPads and increase revenue, just as iPhones did with higher prices during the past year.
Apple made product announcements Tuesday at the Brooklyn Academy of Music in New York City about seven weeks after it unveiled new versions of the iPhone and its smart watch. The event marks the fourth time in the last decade that Apple has organized a second event to announce new devices before the Christmas shopping season.
The new MacBook Air marks the first complete design update of Apple's most popular laptop model since 2010.
Photo:
justin lane / epa-efe / rex / Shutterstock
The new Macs arrive more than a year after Chief Executive Tim Cook and others at Apple tried to reassure anxious customers, concerned about the lack of Mac updates, that the company was still committed to its personal computer business.
Previously, Mr. Cook had promoted the iPad as a replacement for the laptop, but on Tuesday it moved to the company's PC product line. "Our customers love their Mac," said Mr. Cook, adding that the amount of Mac in use worldwide has reached 100 million.
"Apple thought that the PCs were going to go down the road and that the iPads would rule the place, but that has not happened," said Patrick Moorhead, a technology analyst at Moor Insights & Strategy.
However, Mr. Cook noted that the iPad has sold almost 400 million units, which makes it the most popular tablet in the world.
While PCs and tablets have become smaller parts of Apple's business (combined, they accounted for approximately one fifth of their 2017 tax revenues of $ 229.23 billion), they are important to keep people connected to the business. Apple's broader ecosystem, analysts say. According to a study by Kantar Worldpanel, the probability of buying another iPhone increases by 4% if a customer owns a second Apple device such as an iPad.
The PC market is showing signs of life after years of decreasing shipments. New devices that combine the features of laptops and tablets, such as HP Inc.'s Specter devices and Microsoft Corp.'s Surface Pro 6, helped increase global shipments from 1.3% to 122.7 million units in the first half of the year, according to International Data Corp., a market research firm.
Apple's share of PC shipments has hovered around 10% in the last three years, at a time when sales of Mac units have fallen by 6.5%. Apple has compensated for that with a 23% increase in average base prices, to keep Mac's revenue roughly unchanged from fiscal year 2015.
Meanwhile, revenue for iPads that Mr. Cook promoted as replacements for laptops has decreased by 40% since its peak in fiscal year 2013. The category of tablets is in the middle of a decline of almost four years , caused in part by larger smartphone screens that produce unnecessary tablets for many people
The redesigned iPad Pro is the first tablet to feature the facial recognition technology that Apple introduced with the iPhone X last year. IPads are 15% thinner than their predecessors, which debuted in 2015. They have a USB-C charging port and work with a new pen that Apple said is capable of charging, magnetically, on the side of the tablet.
Apple devoted much of Tuesday's event to highlighting what users could do with the new devices. Take-Two Interactive Software, Inc. showed its videogame "NBA 2K" on the iPad Pro, with graphics comparable to those seen most often on game consoles. And Adobe Inc. executives showed their upcoming Photoshop for iPad, scheduled for 2019, and demonstrated the ability to zoom in on a pixel level to make improvements to an image.
On the Mac, Apple highlighted the speed and sustainable construction of the device. Apple said a new metallurgy process allowed it to make each new MacBook Air out of 100% recycled aluminum. The company has emphasized its commitment to environmental sustainability now in its two previous product events.
Write to Tripp Mickle in Tripp.Mickle@wsj.com
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