Other Are you happy about Apple’s recent pricing hikes?

[Andeddu]

Disagreed on an iPhone not being a luxury, but it doesn't matter because even if you don't believe that, it's still not gouging. First of all, the price increases aren't absurdly unreasonable or anything close to that. Second, unlike with food, rent, and other essentials for your well-being, you can buy used o refurbished iPhones for much cheaper. Third, iPhones aren't the only smartphone out there. You can always buy another brand.

So, no matter how you try to spin it, it's not price-gouging.

Definitely a luxury. No one needs an iPhone 14 Pro when an 11 does the exact same job at a 1/3 of the price. I also laugh at people who think they need to get on the upgrade conveyor belt when one phone will do them at least 5 years. I have a friend who picked up a 6S in 2015 and is still using the same phone today. It’s upgraded to 15.7, does pretty much anything the newer phones do… people upgrade because they want to, not because they need to. That makes Apple products a luxury.

 

[ecton]

Everything has increased, including raw materials and production costs.
The price has barely risen on iPhones since the iPhone X, so a small increase isn't the end of the world all things considered. Most people finance, are part of the upgrade program or buy through a carrier anyway...

OP - You say the number of unhappy Apple customers is growing, yet their market share keeps growing. So real world figures would suggest that customers are still happy with the products and services being offered. Yes they've not introduced any new platforms like they did with Apple TV, but what do you want them to give you? What services are missing that you'd want Apple to get involved with and offer customers?
Product wise, they've not introduced any "new" products, but they already have arguably the best devices on the market for the average consumer, rather than introduce more products I'm happy for them to improve what they already sell unlike certain companies who launch new products, and then drop support or cancel them a few years later.

But why put up with this greed

 

[Andeddu]

But why put up with this greed

It’s not greed, it’s inflation caused by currency expansion.

 

[monstermash]

But why put up with this greed

The essential purpose of any for-profit company is to make profit for its owners. As much as legally possible.

It's this "greed" that brings you the products you enjoy. If you don't want to "put up with it", maybe you should stick to products made by not-for-profit companies.

 

[webkit]

First, iPhone is not a luxury anymore. There are iPhone SE, Watch SE, iPad with comparable price to any Android tablets. Second, iPhone is kind of essential for lots of people’s daily life. Raising price relentlessly (much higher than inflation) to take advantage of people’s daily need is kind of gouging…

What "relentless" iPhone price increases are you referring to?

The entry price of this year's third generation iPhone SE (with four times the storage) is only $30 more than the original iPhone SE was in 2016.

The entry price of the iPhone 14 (with twice the storage) is $170 less than what the smaller iPhone X was in 2017.

The Pro and Pro Max models haven't seen price increases (in fact, 256GB and 512GB versions are actually $50 cheaper) since they were introduced in 2019.

 

[tornadowrangler]

Just facts for comparison


Here's the Mac lineup from 10 years ago (Oct 2012):
Macbook Air: $999
Macbook Pro: $1199, but the real pro: $2199
iMac: $1199
Mac mini: $599
Mac Pro: $2499

Current Mac lineup (Oct 2022):
Macbook Air (M1): $999; (M2):$1199
Macbook Pro: $1299, but the real pro: $1999
iMac: $1299
Mac mini : $699
Mac Studio: $1999


Here's the iPad lineup from 10 years ago (Oct 2012):
iPad mini: $329
iPad 2: $399
iPad (3rd gen): $499
iPad Air: (Did not exist)
iPad Pro: (Did not exist)

Current iPad lineup (Oct 2022):
iPad mini: $499
iPad (9th): $329
iPad (10th): $449
iPad Air: $599
iPad Pro: $799

Here's the iPhone lineup from 10 years ago (Oct 2012):
iPhone 4 (2 gen back): $449 unlocked
iPhone 4s (1 gen back): $549 unlocked
iPhone 5 (current gen): $649 unlocked

Current iPhone lineup (Oct 2022):
iPhone SE (chip from 1 gen back): $429
iPhone 12 (2 gen back): $599
iPhone 13 (1 gen back): $699
iPhone 14 (current gen): $799


Average income in 2012: $51,000
Average income in 2022: $63,000

 

[monstermash]

I paid $5500 for my Mac IIci setup and $2700 for an Apple IIgs setup....and that isn't even adjusting for inflation over the past 32-34 years.

But yeah...these price increases are just gouging the hell out of people.

 

[subjonas]

Apple doesn’t have new products in the recent years, just some marginal improvements here and there (bigger screen, better camera and etc). To keep its revenue growth, Apple hikes price directly or indirectly. Even TV+, which only has a handful of shows, got a 40% hike. I am still loyal to Apple products, but I am unhappy that price keeps going up (much higher than inflation) with only marginal improvements. What do you think?

I pay zero attention to how prices change over time, whether they increase or decrease. I look at each purchase objectively one at a time, at the time that I make it. If the product is worth the asking price to me, then I buy it. If not, then I don’t. There are no emotions or grudges involved. I know that if it’s not worth it to enough people, ie. not enough people buy it, then and only then has Apple (or any given company) priced it too high and they’ll have to adjust. That’s just how the free market works. It’s self-regulating, so I don’t need to care. At least for premium products that are not necessary for life. (Basic tech is necessary but there are many cheaper options that will do the job.)

 

[1885507]

Apple One, especially the 2TB "premier" tier, remains a literal steal. I'm not sure how people think it's not.

 

[imnotthewalrus]

My first Mac was the 2006 MacBook, Black plastic casing, 2.0 GHz memory, 80 GB Hard Drive. $1499. Let me repeat; $1499. This past year I bought a 2020 MacBook Air with 8 GB memory, 256GB SSD . $849.00. I have no complaints.

 

[Abazigal]

Apple prices haven’t quite increased here in Singapore. They have never been cheap (what more with our goods and services tax set to rise by another 1% next year), but they seem to be holding steady. Nor have I received any notification about Apple Music or TV+ getting more expensive (at least not yet).

 

[mpavilion]

Here's the iPhone lineup from 10 years ago (Oct 2012):
iPhone 4 (2 gen back): $449 unlocked
iPhone 4s (1 gen back): $549 unlocked
iPhone 5 (current gen): $649 unlocked

Current iPhone lineup (Oct 2022):
iPhone SE (chip from 1 gen back): $429
iPhone 12 (2 gen back): $599
iPhone 13 (1 gen back): $699
iPhone 14 (current gen): $799

Another way to look at it is using an inflation calculator: $649 (base iPhone price) in 2012 would be $839 in 2022 dollars; but the base iPhone 14 is only $799 (and of course has more storage, bigger screen, etc. than the iPhone 5).

Also – my 8 Plus was $799 when introduced in 2017; that’s $967 adjusted for inflation. The 14 Plus is “only” $899. So again, the increase is less than the inflation rate.

 

[usagora]

My first Mac was the 2006 MacBook, Black plastic casing, 2.0 GHz memory, 80 GB Hard Drive. $1499. Let me repeat; $1499. This past year I bought a 2020 MacBook Air with 8 GB memory, 256GB SSD . $849.00. I have no complaints.

No, no, you must believe that you're being gouged! /s

I believe I paid about $1300 for my first MacBook (white) in 2008 and $999 for the same MBA you got (obviously not on sale like you got it). Even if you add in the price of the missing SuperDrive, it's cheaper for a FAR more powerful computer. No complaints from me either. But then again, I wasn't looking for anything to complain about. I have different hobbies.

 

[unchecked]

Apple prices haven’t quite increased here in Singapore. They have never been cheap (what more with our goods and services tax set to rise by another 1% next year), but they seem to be holding steady. Nor have I received any notification about Apple Music or TV+ getting more expensive (at least not yet).

We got our price hikes together with the rest of the world.

Music went up to S$11 from $10, Apple TV+ went up to $10 from $7.

 

[Abazigal]

We got our price hikes together with the rest of the world.

Music went up to S$11 from $10, Apple TV+ went up to $10 from $7.

Hmm, that’s odd. Did I miss a memo or something?

Ah, I see it now. Up to $20 from $17. Thanks for taking the time to respond to me. I wouldn’t have spotted that otherwise.

 

[kenny7]

Yes. quite happy and satisfied with the price hikes.

 

[Krypton Deer]

hate to see all these price increases but tbf, I’m keeping my devices for much longer. And inflation is real - so there is no plan switching to competitors for now:

iPhone: before 2, now 3-4 years
iPad: losing track, 5+ years
Mac: expect to last 5+ years again with my M2 Air

 

[ApplesAreSweet&Sour]

I don’t know if this kind of question makes sense considering how most MR users are in the US while a substantial but much smaller fraction are outside US, mainly EU(not substantiated, just a guess).

And even within the EU member states(countries), sales tax and income varies greatly .

So it’s really quite hard to assess how hard any of us have been hit and what this might mean for Apple.

Regardless, a 10-20%ish increase on nearly every necessary or unnecessary good and service will not help any business but especially those who sell things that most can survive without, like smartphones and computers.

However, spending habits are much more irrational than most of us would like to admit. And looking at the most recent sales figures for iPhones 14, it doesn’t seem like this 10-20%ish price hike outside the US was enough to drag down total annual iPhone sales below what we’ve seen in 2021 and 2020.

It might be that the average consumer puts new tech before new clothes, cars, vacations, etc. Or it could simply be that smartphones are much easier to pay for with all the various discounts, trade-in deals, and zero interest payment plans, something that usually isn’t available for other consumer goods.

Good or bad, I don’t see any clear indication of Apple’s 2022 sales being worse than previous years.

Only iPhone 14 and 14 Plus seem to not meet Apple’s expectations. But only because more are going for iPhones 14 Pro, not because of lower iPhone sales in total.

 

[The Game 161]

nobody likes to pay more that's for sure.

 

[Andeddu]

The bottom line is that we are all, in real terms, paying the same, but we have much less disposable income than we had in previous years.

 

[Madonepro]

Apple doesn’t have new products in the recent years, just some marginal improvements here and there (bigger screen, better camera and etc). To keep its revenue growth, Apple hikes price directly or indirectly. Even TV+, which only has a handful of shows, got a 40% hike. I am still loyal to Apple products, but I am unhappy that price keeps going up (much higher than inflation) with only marginal improvements. What do you think?

Do you understand economics? So you understand that inflation is only part of what drives companies costs? Computer components have exponentially risen in price over the last few years, as has shipping, the first due to most products being manufactured and assembled in china, with major lockdowns, and a shortage of some components due to 'bitcoin' mining. `The conflict in Ukraine has hit world markets, caused huge energy price increases. Add into it the, the monetary burden most banks have felt due to govt spending to maintain their economies thru covid and after.
There is probably less that 5% of purchasers of Apple products this year, who actually have to buy something new, and most just what the latest and greatest shiny thing. So accept that it will cost more, because it cost's more to make it, or close your wallet, and save for one things settle.

 

[monstermash]

I bought a new iPhone 14 Pro Max 512, because i destroyed my XS Max 3 weeks prior (liquid). I think the new phone was about $1500 all in.

I would have bought it at twice that price, if that's what they were charging.

 

[aue123]

while i agree with production cost and inflation increasing, you know it’s price gouging because earnings reports say something like 80 billion dollars profit. and the next report will say 90 billion , and the next 100 billion.. key word “profit”

and people with business degrees will claim they need profit to grow, but fail to realize that the tech market is pretty stagnant currently and i’m sure they aren’t investing 70 billion in research and development every quarter because they rehash the same phone/mac/tv etc designs year over year.

 

[Andeddu]

while i agree with production cost and inflation increasing, you know it’s price gouging because earnings reports say something like 80 billion dollars profit. and the next report will say 90 billion , and the next 100 billion.. key word “profit”

and people with business degrees will claim they need profit to grow, but fail to realize that the tech market is pretty stagnant currently and i’m sure they aren’t investing 70 billion in research and development every quarter because they rehash the same phone/mac/tv etc designs year over year.

Profit has to increase each year because of inflation. $80bn this year has the purchasing power of $70bn last year.

 

[monstermash]

while i agree with production cost and inflation increasing, you know it’s price gouging because earnings reports say something like 80 billion dollars profit. and the next report will say 90 billion , and the next 100 billion.. key word “profit”

and people with business degrees will claim they need profit to grow, but fail to realize that the tech market is pretty stagnant currently and i’m sure they aren’t investing 70 billion in research and development every quarter because they rehash the same phone/mac/tv etc designs year over year.

Doesn't seem like you understand the difference between "maximizing profit" and "price gouging".