Drew Angerer
Summary
- Apple just unveiled its new iPhone 14, together with other key products.
- Despite big hoopla about price hikes up to $100, Apple surprised everybody by announcing it will keep iPhone 14 prices the same they were when the iPhone 13 was launched.
- In this article we will try to understand why Apple can do this in an inflationary environment without compressing its margins.
Introduction
Apple (NASDAQ:AAPL) announced that is latest line-up of iPhones 14, while having enhanced qualities, will be sold all at the same prices as last year’s models, despite inflationary pressure that was leading many analysts to $100 price hike forecast.
This paints a picture that poses a danger for Apple: is the world’s largest company going to see its margins shrink and its profitability reduced?
In this article, I would like to highlight what I think Apple’s strategy may be to deliver yet again improving results that keep its high margins up.
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