Apple is on sale. No, you won’t walk into an Apple Store and see iPhones or Macs or iPads at half price. Apple doesn’t work that way. What you will see is Apple hardware on sale almost everywhere else.
Amazon, Best Buy, B&H, various online retailers, cell phone companies. Everything affordable is on sale. Why? What has changed that Apple feels a need to allow retailers to discount the company’s famously expensive hardware?
Someone at Apple recognized that there is a sales limit for the most expensive products, and Apple has hit that ceiling already– iPhone, iPad, and Mac sales are chugging along, yes, but not breaking any sales records anymore.
That’s called playing to the base. Apple has more than a billion customers and they need to refresh their hardware every x-number of years, so the company is in no danger of going out of business despite the critical screeds and misleading memes otherwise.
Apple is healthy. So, why all the sales?
The two fastest growing product groups at Apple are Services and Wearables. Both are dependent upon hardware sales. Services is about to hit a peak– there are only so many customers who need AppleCare or subscription apps, right? Wearables? Think of these as iPhone accessories– Watch, AirPods, et al. Big business, yes, but, again, dependent upon iPhone sales which are going down, not up.
Apple figured out that it’s important to have the image of upscale and expensive gear– walk into an Apple Store and check out those $50 iPhone cases that are available on Amazon for $10, or those $50 nylon Watch bands you can buy on Amazon for $10 or less– but the company can put products on sales elsewhere around the interwebs.
Win. Win. Win. Win.
Apple sells more hardware at a discount but makes up the difference in Services and Wearables revenue. Some customers get a break on Apple’s overly inflated hardware prices. App developers and accessories makers get more customers to buy their apps and gear. Apple’s retailers get to sell hardware to more customers.
Yep, Apple is still on sales and I bet it will stay that way awhile.