https://sg.finance.yahoo.com/news/demand-mac-mini-surging-apple-223237488.html
Article above seems to confirm my suspicions yesterday on why Apple's Q2 guidance was so far above expectations.
Original thread: https://www.reddit.com/r/stocks/comments/1t0d4id/question_on_apples_guidance_of_1417_q2_revenue/
Q2 revenue guidance came in at 14-17% vs 9% expected with margin remaining constant at 48% despite noting a significant increase in memory cost. They didn't clearly illustrate how they would achieve the large revenue increase, but it really seemed the only way they would be able to maintain margin % with higher memory costs was by raising prices. And just a day later, they've effectively raised prices.
They didn't change the pricing of the models, but they eliminated the cheapest model, which cost $599. Cheapest option available is now $799. This is effectively a price hike and a large one. No wonder Apple didn't fully explain the extraordinary guidance on yesterday's earnings call. They conveniently failed to mention this move, likely because of the consumer backlash they'd get. This is also worth noting because it means the higher revenue guidance doesn't automatically translate to higher operating income.
Apple's unexpected Q2 revenue guidance – Turns out Apple is really just effectively raising prices. Cheapest mini mac up from $599 to $799
byu/BGID_to_the_moon instocks
Posted by BGID_to_the_moon
3 Comments
They increased the storage as well. It’s not a secret.
What percentage of Apple sales is the Mac Mini?
“Inflationary” pressure on essential Apple products. Lol
I haven’t bought anything brand new from them since my watch in 2020, and it’s still “ticking” and lasts a full 24hr day. My 2020 MacBook Pro has the M1 and 90% battery health.
Their products with M series chips are just too good, they last a long long time with efficiency and power that still holds up very very well.