by Brandon Zeman, WeSeed Writer
Apple (AAPL) held their much anticipated annual Worldwide Developers Conference (WWDC) yesterday. Rumors of a new iPhone and ex Apple CEO Steve Jobs’ return created an air of mystery around the already secretive event.
WWDC has come and gone now, and while a new iPhone was introduced, Steve Jobs was absent from the presentation. Also announced were upgrades to the MacBook Pro line, and the new Mac OS X Snow Leopard, to be released in September. Apple’s focus on pricing was a key theme from an investing standpoint. Let’s have a look.
Apple cut prices on 15 and 17 inch versions of the MacBook Pro, and announced the 13 inch MacBook would be upgraded to Pro status, and will also receive a price cut. Even the high-end MacBook Air is receiving a $700 price cut.
Snow Leopard, Apple’s latest OS, will be released in September for just $29, rather than the $129 price point used for past OS launches.
Finally, it was announced the current iPhone 3G (8gb) would be reduced to $99 (with new AT&T contract).
Apple stock was down around 2.8% most of the afternoon, but began rebounding soon after the iPhone announcement. Apple closed the day at $143.85, down just 0.57%.
Slashing prices is a big departure for Apple. It would seem with these recent price cuts the folks in Cupertino are focusing on growth and getting their most popular products into the hands of more Americans.
Do you like Apple’s price strategy? Will lowering prices encourage more PC’s to become Macs? Do you think this plays well for Apple’s long-term strategy? Let us know what you think in the comments, and if you plan on adding some fruit to your portfolio on WeSeed.
Found this pretty interesting article on Gizmodo about the price cuts and new distinctions of “Pro” models. Argues more along the lines of branding and product than investment issues, but thought-provoking nonetheless.
http://i.gizmodo.com/5284638/when-pro-doesnt-mean-pro-anymore?skyline=true&s=x