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?

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  • 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

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