Oct
20

Will Apple Take A Hit In The Recession?

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With the buzz of last weeks event still electrifying the Apple stock and market, how will Apple adjust to the recession and cut in stock? I’m going to have to agree with my fellow blogger, Henry Blodget, who states that Apple Won’t Get Crushed By The Recession.

The new MBP and other products launched within the last few months have took into account the market and economy, while still maintaining the elegance and superior performance that Apple offers. They have been able to effectively balance the, ” magical halo of quality and cool” that Blodget mentions, while still lowering prices to a reasonable rate for those interested in purchasing a Mac for the first time or buying the new, sleek MBP with its innovative features. Blodget says:

  • A $1,000 laptop is not really much more expensive than an $800 laptop, especially for a product that should last a few years. Apple will never win over the folks who choose purely on price anyway, so it would be dumb for it to sacrifice its premium positioning to try.
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  • The $200 iPhone has much of the functionality that many people once looked to laptops for, and some potential buyers of $500-$800 laptop will opt for that instead. Apple’s iPhone, moreover, is still the highest quality product in the market, so no one who buys it will ever feel like they’re settling for less.

 

I agree with Blodget’s reasoning, but still, there were many who were disappointed with the event and were hoping that Apple would lower their prices a little more in order for those struggling in a recession to be able to purchase a new Mac.

So while Apple is far from ‘taking a hit’ in the current recession, though everyone will see a cut in stock and lowering in profit margin and purchasing, Apple will still be just find and continue to excel as the leader in innovative and user-friendly, cutting edge technology.

But I can’t help but wonder, will Apple ever make their products, like the iPhone, available at a lower price or keep it just out of reach for the average joe in order to maintain its mystical and superior quality status?





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