[simonh]

This isn't the first time Apple sales have taken a hit in a downturn. The issue is if they significantly cut margins now, when the economy swings back up again the risk is they'll face an uphill battle growing margins again.

People delaying purchases, or buying lower spec models or alternatives now may well want to upgrade sooner when their financial situation improves. If Apple sacrifices margins they risk losing out on those high margin sales return in a few years time. In the long term it may be better to take the temporary hit to revenue now in order to preserve their margin structure long term.

What they might do is introduce down market models, or more likely keep older models around in the lineup longer than they otherwise would at a slightly reduced price. That would still mean taking a hit on sales at the top end, as here with M2.

[viraptor]

> If Apple sacrifices margins they risk losing out on those high margin sales return in a few years time.

Changing the official price is not the only way to go. Apple is one of very few places which doesn't regularly run sales and promotions to adjust the sales of their products. They could easily run an Easter sale that takes a month, then something else again. This wouldn't change their margins long term.

[mywittyname]

Apple is using the Porsche model of, "An entry level <Porsche|Apple> is a used one".

[rmah]

Apple is the only major consumer electronics manufacturer with high enough margins to cut them "significantly". IIRC, their gross margins are still multiple times higher than the industry average. They would have to cut prices by a lot more to fall in line with industry averages, which honestly, doesn't seem likely to me.