Apple reviving “MacBook’ with a18 processor?

[dada_dave]

Thinking about this some more, the A18 Pro is 40% faster in single core than the M1, and nearly the same in multi-core and GPU, so it will feel faster for general single threaded tasks than the $699 M1 MBA Apple is still selling through Walmart.

And after this year’s surprise price drop on the entry-level M4 MBA with 16/256 to $999, this new MacBook (nothing?) MacBook (SE?) could come in at $799 and let the MBA go back upmarket a little bit.

I see it like this for next spring:

$799 13” MacBook SE A18 Pro 16/256
$999 13” MacBook SE A18 Pro 16/512
$1199 13” MacBook Air M5 16/512
$1399 15” MacBook Air M5 16/512

By ceding the $999 price point to the new A18 Pro MacBook SE, Apple can make a 512GB drive available at that price, while allowing the MacBook Air line to start at $1199, but now at 512GB, so effectively without a price hike.

The $799 model gets stuck with the last remaining 256GB storage tier, but that’s still fine for many buyers at that price/performance level, while providing nice $200 upsells to the 512 MacBook SE and then again to the 512 MBA

Close! They did indeed increase the base storage to 512GB, nice, but the price is $1099/$1299 - Apple going more aggressive of pricing than expected given ::waves at all the AI-induced shortages:: everything. So very nice. I was surprised when they dropped the M4’s price and pleased they are only returning to the M3’s under the circumstances especially while boosting base storage.

 

[Vincent Hannah]

Thanks for the shout out! I was indeed close.

I was right about the $200 pricing tiers, and that the MacBook Air would start at 512GB storage and move up in price to make room for the new MacBook. Looks like tomorrow's MacBook (Neo?!) will be 16/256/$699 and 16/512/$899, so I was only wrong about a (very unexpected) additional $100 price cut across the board. Everybody wins!

 

[dada_dave]

What Apple appears to have done with the Pro/Max models is take the M4 equivalent and simply lop off the lowest storage tier - so the higher tiers basically followed what @Vincent Hannah thought they would do for the Air. In this way, they effectively raise the ASP without technically raising prices as they are defaulting users to the more expensive tier.

However! Since these new base models are no longer BTO, users can get them at retailers which are more likely to offer sales than Apple themselves. As aforementioned, the M5 Air is slight outlier with not increasing the base price by as much (and because they had previously lowered the M4 Air's price) such that the M5 Air is no more expensive than the M3 Air with better specs in everything. Given what is happening to computer prices in general, frankly the M5 pricing could've been a lot worse and the Air is I'd say pretty damn good. Hopefully M6 pricing doesn't get too crazy.

 

[Vincent Hannah]

I’m only just noticing they are doing this for the MBPs too. The base M5 Max jumped $400, but now comes with a 2TB drive that was a $400 upgrade before.

Tim is cleverly hiding the industry-wide component cost increases in the new higher base tiers without actually raising prices for what you get. And high end buyers are subsidizing the entire Mac line (even more than normally) so that we can have a 512GB MBA for $100 less, and such a thing as the $599 MacBook Neo.

 

[NotEntirelyConfused]

I’m only just noticing they are doing this for the MBPs too. The base M5 Max jumped $400, but now comes with a 2TB drive that was a $400 upgrade before.

Tim is cleverly hiding the industry-wide component cost increases in the new higher base tiers without actually raising prices for what you get. And high end buyers are subsidizing the entire Mac line (even more than normally) so that we can have a 512GB MBA for $100 less, and such a thing as the $599 MacBook Neo.

I think that that is incorrect. You can't call it "subsidizing" when all models are profitable. Though if what you mean is that margin on the top end units is pulling up their average margin, making lower margins on the base units more acceptable... well, maybe so.

It is really very impressive that they've held the line, and even expanded storage at equal price points, at the lower end.

 

[Vincent Hannah]

I think that that is incorrect. You can't call it "subsidizing" when all models are profitable. Though if what you mean is that margin on the top end units is pulling up their average margin, making lower margins on the base units more acceptable... well, maybe so.

Yes, that's what I meant.