The firm said Apple’s March 2–4 “Launch Week” introduced multiple new devices designed to strengthen the company’s ecosystem at a time when the global smartphone and PC markets are expected to face one of their weakest years in more than a decade.
Apple introduced a new $599 entry price across several products, including the iPhone 17e, iPad Air (M4), and a new MacBook Neo, signaling a strategic push into lower-cost segments to attract new users and increase market share.
At the same time, the company raised prices for premium devices while boosting base specifications, such as doubling starting storage in some models. Bernstein said this approach allows Apple to justify higher price points while softening consumer reaction to price increases.
The strategy reflects a deliberate trade-off, the analysts said, as Apple accepts tighter hardware margins on budget products in order to expand its installed base and generate higher-margin revenue from services tied to its ecosystem.
The company also rolled out seven products within a single week, which Bernstein said may signal a shift toward more frequent multi-tier product cycles aimed at sustaining demand as hardware upgrade cycles lengthen.
source https://www.investing.com/news/analyst-ratings/apple-pushes-budget-devices-to-expand-ecosystem-bernstein-says-4548597
