Apple Strategy for $1000 stand?!

Isaiah_53_5's picture
Rank: Human | 14,437

Any ideas on why Apple would do this? It does look sleek, but you know China could copy that for $100 bucks, unless there is some expensive raw material on it.

I think the design budget went over and it came out to like $600 cost and $849 price. Someone had to have been like - fuck it ... make it $999. Maybe margins weren't as good on the computer as originally expected (could be over budget) and maybe they thought they could get some captive pricing into the stand and squeeze out some good margins and get PR on the high price but I bet they thought the PR would be gradual acceptance over outrage... pure outrage lol. But, all speculation.

Thoughts?

I can't even get a video of the announcement - Apple is cleaning up this mess...

Comments (24)

Jun 5, 2019

Found a version on YouTube that was uploaded 5 minutes ago with 25 views. The crowd sounded stunned / laughing, and the presenter stuttered his next few words.

I have a lot of Apple products that aren't computers (Thinkpad devotee since the IBM days), such as an iPad, iPhone, Apple Watch and Airpods. I have no real complaint with iOS, but I couldn't use a Mac computer for working. They have such condescension toward their professional and creative userbase nowadays. Come on, $999 for a stand?

Jun 5, 2019

Because someone will buy it. Lots of fanboys out there, and if you can afford to buy a $5000+ mac pro with a $5000 6k monitor to go with it, you can probably afford to buy a $999 stand.

Don't get me wrong, even as a fan of Apple products I would never drop a grand on a stand, but it would also be hypocritical of me to pretend like I haven't wasted a grand on something I didn't really need before either.

Jun 5, 2019

Apple tax is strong...

Jun 5, 2019

"Creative professionals" could get their employers to expense it, because they absolutely need a $999 stand to get their creative juices flowing.

Jun 5, 2019

Yes it may be overpriced but Apple has built a really interesting monitor here; this device has technical specifications more in line with professional grade monitors which typically cost between $15,000-50,000 per unit. The cost of a $999 stand is not a substantial issue when your main customers already perceive your product to be value priced.

The main issue with this strategy is that $5,000 for the monitor itself puts it just within reach of typical mass market consumers who most certainly are not regular buyers of monitors priced at this extreme end of the market. Apple is essentially trying to corner the market on professional use monitors by severely undercutting the less price sensitive end of the market while also taking whatever incidental mass market sales they can manage too.

They unfortunately now also need to contend with the fact that their messaging to the public has been essentially tone-deaf and poorly executed from the start. They should have seen how the public would react and instead called this an enterprise bundle or similar.

BTW, no I don't think it is worth $999, but that is not the point.

    • 1
Learn More

Side-by-side comparison of top modeling training courses + exclusive discount through WSO here.

Jun 5, 2019

Apple really should have just not presented this product to masses and let their enterprise customers buy it as needed. Holy shit. How do you not know you're going to get roasted for a $999 stand?

    • 1
Learn More

Side-by-side comparison of top modeling training courses + exclusive discount through WSO here.

Most Helpful
Jun 5, 2019

MKBHD made a good point in his video, they should've said the monitor is $6,000, or $5,000 if you don't want the stand.

    • 3
Funniest
Jun 5, 2019

Framing bias. I think I might be losing my mind studying for this godforsaken test

    • 2
Jun 5, 2019

CFA?

Jun 7, 2019

LI II or III?
Taking LI here

thots and prayers

Jun 5, 2019

Step 1: make easily replicable object with high price tag
step 2: patent it
step 3: when china obv copies that shit have trump come down on em in this silly trade war

Jun 5, 2019

You forgot the "Profit" step??

Jun 5, 2019

it's apple so:

  • Profit
  • Step 1: make easily replicable object with high price tag
  • Profit
  • step 2: patent it
  • Profit
  • step 3: when china obv copies that shit have trump come down on em in this silly trade war
  • Profit
Jun 7, 2019

I think the thing that's so frustrating is that they keep raising prices on EVERYTHING even with only marginal design changes. Obviously, no one knows anything about stands, as most of us just leave it where it is. So on the surface, it looks like a typical Apple play charging more but not offering more. The real problem is not the stand, it's in their phones, which everyone is pretty familiar with being very expensive with no significant added value. The products are great, the pricing is just a slap to the face.

    • 2
Jun 7, 2019

Like someone mentioned - they're selling a $5k tower computer, a $5k complimentary monitor and a necessary stand for that monitor for an additional $999.

After spending $10k for the setup, an additional $999 isn't much. It's a smart pricing strategy IMO. As an average consumer I have no need for any of this stuff so seeing just a stand at $999 is absurd. But when you're buying the whole system it's marginal.

    • 1
Jun 8, 2019

Maybe marketed towards companies? For lots of tech companies, money is no object, and they'll just blindly order stuff from Apple.

Jun 8, 2019

It has a dual-use as a cheese grater.

Jun 9, 2019

I think it is a case of "get them in the door at a low price" type of deal. From what I have heard, the monitor and computer are fantastic deals, and they probably needed to make up the margins somewhere. I'm sure it's a very good stand.

Jun 9, 2019

God knows how much in more free publicity

Jun 10, 2019
Comment
    • 1