Apple (NASDAQ: AAPL) brought out an incremental update to its MacBook Air today, with a few minor upgrades. The new Intel Haswell processors in this version are faster than in the previous version, and some upgrades to battery life were also made. However, the bigger story here was the pricing change. Apple brought the price down of its entry-level 11-inch MacBook Air from $1,000 to $900. That represents a new low price point for a new MacBook, as Apple has historically kept its lowest price point at $1,000.
In this segment from Tuesday's Tech Teardown, host Erin Kennedy and Motley Fool tech and telecom bureau chief Evan Niu discuss why Evan sees the pricing shift as significant. He sees the $1,000 mark as a psychological threshold that the company has never felt comfortable crossing before with its MacBooks, and says this could be a shift toward more aggressive pricing for Apple. Evan also discusses how important this product segment still is for Apple in a world where smartphones and tablets grab all of the media attention, and why this is one of the few product categories where the company can still outpace the market and gain market share.
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Erin Kennedy owns shares of Apple. Evan Niu, CFA owns shares of Apple. Evan Niu, CFA has the following options: long January 2015 $460 calls on Apple and short January 2015 $480 calls on Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.