Why Are Macs Becoming More Affordable?

| + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn
Source: Thinkstock

Source: Thinkstock

The newest MacBook Air is faster and cheaper, with the most recent price tag of $899 for the base model of the 2014 MacBook Air making it closer in price to fellow laptop makers HP (NYSE:HPQ), Samsung (SSNLF.PK), and Lenovo.

While portable computers options continue to spring up at prices ranging from $199 netbooks to $1,500+ for more high-end offerings, Apple’s (NASDAQ:AAPL) slow downward trickle suggests that it’s more than just cheaper technology at work here. Apple may be attempting to become a more mainstream competitor in the laptop market.

Apple previously carried a lower priced laptop in the form of the MacBook, the predecessor to the MacBook Pro and MacBook Air. They were quietly discontinued in 2011. The downward pricing of the latest MacBook Air starts to put it at prices below the original MacBook, with an initial price of $1,099 before taxes. Three MacBook Air options are that price or lower today.

It’s a very common phenomenon for technology to become less expensive as it gets faster with more memory. This is the economic result of Moore’s Law, a rule of computer science that suggested technology costs less because computer chips can be made to store double the memory at a smaller size every two years. This pattern has been correct for much of the 20th century and through the first decade of the 21st century. For technology consumers, it means that a smartphone that cost $200 without a contract will drop in price significantly within the next two years as the technology becomes cheaper to recreate. While this is definitely part of what’s going on at Apple, the fact that it’s got more competition than ever is also a factor.

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business