Apple Inc. Hits an Aggressive New Low

Apple updates its MacBook Air lineup, adding in faster processors while also dropping the price.

Evan Niu
Evan Niu, CFA and Erin Kennedy
Apr 29, 2014 at 8:20PM
Technology and Telecom

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.