Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Business Take: Will $100 Macbook Air Price Drop Help Apple Sell More Machines?

Apple's  (NASDAQ: AAPL  ) surprising decision to cut the price of its MacBook Air laptop by $100 while also improving its specs was the topic for host Jason Hellmann and Fool contributor Daniel Kline as they wrapped up the first edition of Business Take, the show that gives you the Foolish perspective on the most important business stories of the week.

The two looked at possible reasons for the move as well whether a slightly cheaper Air would be an attractive computer for people currently using Microsoft  (NASDAQ: MSFT  ) Windows-based laptops.

Kline explained how he came into possession of a previous-generation MacBook Air and explained why he did not think a lower price would make a material difference in sales for the computer. He also called the Air "the greatest laptop ever made," but said that even at $899 it's hard to justify spending that price when there are so many solid PC-based laptops that cost much less and visually are knock-offs of Apple's revolutionary look and paper-thin design.

The two discussed the business implications of dropping the price and whether Apple could legitimately expect to increase sales or if it was just the company offering people who were already going to buy the Air a lower price. 

"Hasn't that been the argument against Apple since 2003? They markup prices and you pay more for the same computing power." Hellmann asked.

Kline and Hellmann debated the dedication of Apple's fan base along with the idea that many people use Apple phones and tablets but stick with Windows-based PCs due to price. They discussed whether the price drop could impact that and if laptops -- even really thin ones -- are relevant in the age of tablets.

Watch the video below, then tell us what you think using the comments box below. Is a $100 price cut enough to convince someone who likes Apple but is price-conscious to buy a MacBook Air? Is Apple just costing itself money without increasing sales appreciably?

The biggest thing to come out of Silicon Valley in years
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.

Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 06, 2014, at 12:11 PM, SimchaStein wrote:

    But he is wrong. Sony's Air equivalent was $150 higher. They have since dropped prices because it wasn't selling. Apple's prices are not higher when you account for:

    1) Spec to spec comparisons

    2) The higher resale price of used Macs.

    3) Better total support

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2945110, ~/Articles/ArticleHandler.aspx, 8/28/2015 3:34:27 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Daniel B. Kline

Daniel B. Kline is an accomplished writer and editor who has worked for the Microsoft's Finance app and The Boston Globe, where he wrote for the paper and ran the business desk. His latest book "Worst Ideas Ever" (Skyhorse) can be purchased at bookstores everywhere.

Today's Market

updated Moments ago Sponsored by:
DOW 16,598.81 -55.96 -0.34%
S&P 500 1,980.51 -7.15 -0.36%
NASD 4,815.38 2.67 0.06%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 3:18 PM
AAPL $112.66 Down -0.26 -0.23%
Apple CAPS Rating: ****
MSFT $43.86 Down -0.05 -0.10%
Microsoft CAPS Rating: ***