00:00Mark Gurman, Bloomberg Managing Editor, has been covering this story for us.
00:04Mark, I mean, just break down, like, historically, just how big these price hikes compare to moments past.
00:11Is this a real squeeze that Apple is facing right now?
00:16As far as I'm aware, there is no precedent. There is no moments past.
00:20Apple has not, at least as long as I've been covering the company, which has been well over 15 years
00:26at this point,
00:26a broad set of price increases like we saw this morning.
00:31Mac price increases, iPad, Apple TV, HomePod, HomePod Mini, Vision Pro.
00:38We're talking about very significant changes here to the starting prices of Macs.
00:43The MacBook Air going up a couple hundred dollars.
00:46The iMac going up a couple hundred dollars.
00:49Mac Studio going up by $500.
00:52Mac Mini going up by a couple hundred dollars.
00:55You saw the entry-level iPad go up by a hundred.
00:58The iPad Mini go up by a hundred.
01:00Even something as small as the Apple TV set-top box is going up from $130 to $200.
01:06And if you follow the set-top box market, that's a huge price increase when a lot of these devices
01:11are in the $50 to $99 range.
01:13And it's a year.
01:14I mean, it's a year in which I have to personally upgrade almost all of these things.
01:18But that's because of AI.
01:21I want to be able to, you know, vibe code a whole bunch of Claude bots, so I need a
01:27new computer.
01:27And I imagine everybody's in the same boat, or many people are in a similar boat, right?
01:33Gil Luria was just saying that the lower-priced competitors to Apple also are going to have to raise prices
01:38due to the memory chip situation.
01:40So do they gain market share even as they raise prices at an unprecedented level?
01:47I'm not sure how much of an impact these price increases are going to have on purchases to begin with.
01:53They are going to launch their new university offer next week, I believe.
01:58So this is their back-to-school special.
01:59That will help people jump in there.
02:02The MacBook Neo at $700 is still a really good deal.
02:05The MacBook Air at $1,300 is still a pretty competitive deal.
02:08These price increases are happening, really, in back-to-school season, where most of these laptops and Macs are getting
02:14purchased ahead of the holiday season.
02:17At the same time, you know, this is going to do good things for overall revenue.
02:21Profits are probably going to stay in line, given these price increases.
02:25Yeah, and to the previous guest's point, other companies are raising prices as well.
02:30So it's not like Apple is unique here.
02:32In fact, they've been one of the laggards, and I say that in a positive way for price increases.
02:36They've been shielding customers, as they say, for many months on this now.
02:40We've seen several other PC makers and consumer electronics companies already raising prices.
02:45So Apple's really coming in late here.
02:47And, you know, for the first time, they're coming in late for a good reason.
02:50All the device makers are getting crushed today.
02:52So the market making its own decision.
02:54Dell also down 9.5%.
02:55Mark, quickly, I mentioned this to Gil Loria, too, this idea of politics coming in.
03:00The president is no stranger to speaking to Tim Cook.
03:04Affordability is on the ballot for the midterms.
03:07Apple products are obviously highly visible, just given the amount of Americans that purchased them.
03:13Is there a real risk here that there's some political risk to take into calculation now?
03:18Yeah, I don't think there's political risk.
03:20I think that consumers have been prepared for this moment for several months.
03:24There's been an understanding just among people that prices are going up right now in the technology landscape.
03:31And I think there is an understanding from people, even though this is, like, really nitty-gritty stuff,
03:36that this is happening because of AI and because of memory and some such.
03:40And I don't think the average person is going to make this a political thing.
03:43I don't think the average person is going to make this a political thing.
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