Apple Unveils New Products Amid Price Pressure
Apple (NASDAQ: AAPL) released two new products—the MacBook Neo and iPhone 17e, both priced at $599—marking a strategic shift to compete on pricing. The announcements were made in March 2023, with Apple choosing to maintain the same price point as last year’s iPhone 16e despite rising component costs due to AI-driven demand for memory chips.
Samsung reportedly doubled its prices for memory chips supplied to Apple in February 2023. Despite this, Apple managed to avoid raising device prices, suggesting strategic planning to maintain its market position. As of Q4 2025, Apple’s trailing 12-month gross margin reached 47%, up from 38% in 2020, indicating strong financial health that may allow it to absorb short-term price hikes.
Counterpoint Research predicts an average increase of 6.9% in smartphone prices for 2023, which may affect competitors more significantly than Apple. The company’s focus on lower-end devices may enhance its market share and service sales, which grew 14% year-over-year to $30 billion last quarter.
