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These Products Dodged Apple's Price Hikes. Our Expert Explains Why

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Why This Matters

The article highlights how Apple has selectively avoided raising prices on flagship products like the iPhone and Apple Watch despite rising component costs, indicating strategic timing ahead of new product launches. This approach impacts consumers by potentially delaying higher prices and signals upcoming increases across more devices, influencing purchasing decisions and market dynamics. For the tech industry, it underscores the importance of supply chain management and timing in pricing strategies amid global shortages.

Key Takeaways

Apple is the latest to join the list of tech giants that are increasing product prices because of the rising price of components. But while it increased prices Thursday on items like the budget-friendly MacBook Neo (now $699) and iPad (now $449), a few popular Apple products were unaffected -- notably the iPhone and the Apple Watch.

Other products that appeared not to see price increases included Apple Displays, the Apple Pencil and other accessories like phone cases and keyboards.

Since Apple cites the RAM shortage for the price hikes, it's surprising that the iPhone and Apple Watch -- both of which are essentially little computers -- still have the same prices we saw yesterday.

Apple could mark up more prices soon

So why is it that two of Apple's flagship devices and accessories, like AirPods, escaped the markup? CNET Editor-at-Large Scott Stein has a thought: "They're waiting to rip that band-aid off in the fall," Stein said.

Historically, Apple has announced new products, like a new iPhone, at an event in September. Stein speculates that we could see a price jump when new devices are released, and other devices won't be exempt over time.

"I don't think a single Apple product is going to survive price increases," Stein said. The sweeping price increases lead Stein to believe that more devices will cost more over time. Especially since most of Apple's devices use chips that are in high demand.

Apple didn't immediately respond to a request for comment.

Future prices depend on the chips

The future of prices could depend on chips being sourced and availability, Stein said. Apple reportedly has a preliminary chip agreement with Intel amid the chip shortage and high demand with its current supplier, Taiwan Semiconductor. Whether we see price increases on other products in the future will be up to Apple.

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