Apple Drops MacBook Prices

It didn’t take long for Apple to stir up some buzz after President Obama mentioned the tech giant in Tuesday’s State of the Union address. 

Apple announced today that it is slashing its prices on many of its cheaper MacBook pro models. The largest drop in price is with the MacBook Pro with Retina Display, which has cut its price on the 13-inch version by $200 and features a new 2.6GHz processor and 256 GB of storage space. The model is now priced at $1,499. Apple also knocked down the price of the 256GB 13-inch MacBook Air to $1,399.

While many computers are receiving a drop in price, others are just getting an upgrade and selling for the same amount. The 15-inch MacBook Pro Retina display is one such laptop and is still selling for $2,199, but will carry a faster 2.4GHz and 2.7GHz quad-core processors with an available 16GB of memory.

So why is Apple cutting its price tags now?

Mac components — RAM, flash storage, etc. — are becoming increasingly cheaper in the market. Phew! It’s about time.

“When prices of components come down, they are willing to lower prices when they can,” said Ben Bajarin, a principal analyst at Creative Strategies.

The news couldn’t come any sooner. The company’s last quarter saw a drop in sales on Mac products, seeing a dip of over 1 million sold (5.2 million down to 4.1 million). Apple CEO Tim Cook attributed the fall in sales to the cannibalization of the iPad, but he does see an upside.

“I think cannibalization is a huge opportunity for us,” Cook said. “Our base philosophy is to never fear cannibalization. If we do, somebody else will just cannibalize it… We know iPad has cannibalized some Macs, and that doesn’t worry us.”

One of the first moves Apple is taking in sidestepping the issue is cuttings its laptop computers, which will hopefully give customers just one more incentive when decided between products.


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