At last weeks WWDC, Apple unveiled a slew of upgrades and price cuts across its MacBook Pro line, with one of the more interesting announcements being the introduction of a new 13-inch MacBok Pro for under $1200. Apple also slashed $300 off the price tags for the MacBook Air and the 17-inch MacBook Pro. And on top of that, battery life on the new MacBook Pro’s are said to be through the roof.
But now, and I suppose it shouldn’t come as much of a surprise, analysts are now worrying that Apple’s new price cuts will adversely affect its margins. Admittedly, lower prices typically result in lower margins, but here’s why analyts are a bunch of BS artists. When the cost of Apple products are high, analysts clamor together and say that Apple needs to make its products more affordable if it wants maintain growth. Then when Apple lowers its prices, those same analysts jump in and say that Apple’s margins will take a significant hit.
Well, which one is it?
Read the rest here.
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