• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

After 40 investors rejected Jeff Bezos’ Amazon pitch, his parents offered $245,573 of their retirement savings

2

D.C.'s affordability headache has a silver bullet, new study shows: Tackling $40 trillion national debt would boost household income by $36,000

3

China now makes up a record 40% of all global container exports—and it’s a sign Trump’s tariffs meant to punish Chinese firms have fallen flat

1

After 40 investors rejected Jeff Bezos’ Amazon pitch, his parents offered $245,573 of their retirement savings

2

D.C.'s affordability headache has a silver bullet, new study shows: Tackling $40 trillion national debt would boost household income by $36,000

3

China now makes up a record 40% of all global container exports—and it’s a sign Trump’s tariffs meant to punish Chinese firms have fallen flat

The $800 rumor that spoiled Apple’s party

By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
October 14, 2008, 3:01 PM ET
Google source logo
Add Fortune on Google for similar content.

Blame Duncan Riley.

Last Wednesday, he posted an “exclusive”  on his blog — The Inquisitr — under the headline: “Apple to launch $800 laptop.” Although his scoop was unsourced, the news that Apple was set to announce its cheapest notebook computer ever was picked up by Apple blogs and mainstream publications around the world — including the
New York Times
. Bernstein Research analyst Toni Sacconaghi even published a spreadsheet calculating how much an $800 laptop would increase Apple’s available market.

So when Steve Jobs unveiled Apple’s new line of laptops on Tuesday with starting prices of $1,299 for the MacBook, $1,799 for the MacBook Air and $1,999 for the MacBook Pro, you could almost hear the sound of Apple’s (AAPL) shares falling.

What this means is that Apple is not — with one exception — lowering prices in order to grow its market share. In fact, it raised the base price of the MacBook $200. Steve Jobs is clearly sticking with the strategy that has worked for the company since he came back to Apple in 1997: building high-end, high-margin computers and selling them at a premium to discriminating users.

The one exception is the original white MacBook — the best-selling MacBook ever, according to Jobs — which sold for $1,099 when it was introduced two years ago and will now sell for $999.

What you don’t get with the white MacBook, however, are the new features introduced on the redesigned MacBook and MacBook Pro:

  • Unibody aluminum frames (aka “the Brick“)
  • LED-backlit glossy displays
  • New graphics chipsets offering a 3X-to-6X performance boost
  • Button-less multi-touch glass trackpads
  • Longer (5 hour) battery life

Except for the pricing, almost none of this was a surprise, given that the specs had been largely nosed out by rumor websites days — if not weeks — in advance. Even the pricing — and the fact that the $800 rumor was wrong — had been leaked a few hours before the event, perhaps to lower expectations on the Street.

If so, it was in vain. Apple’s share price, which had gained a record-breaking 13% on Monday and opened higher Tuesday morning, was down more than 5% by the time Jobs finished his presentation and gone to the Q&A. (In fairness, so were most of the other tech stocks.)

“Apple is very good at pricing,” says Stephen Baker, vice president of industry analysis for The NPD Group, who believes Apple was right to hold the prices of the new MacBooks steady. “They haven’t run out of headroom yet. I expect they will eventually find a way to build out a line that will come in at $799, but they’ll do it in their own way and at their own pace.”

Piper Jaffray’s Gene Munster points out that it’s unlike Apple to continue sales of an older model at a reduced price, but considers the move “prudent” given investor sentiment about companies that target high-end consumers, as Apple does.

“We believe the company is positioning its Mac lineup for an extended macroeconomic slowdown,” Munster wrote in a report to clients issued after the Apple event. He added, however, that having seen the machines first hand, he thinks the improvements are significant enough to drive buyers up to the $1,299 price-point. “Of the MacBook buyers who would have considered the $1,099 version, we believe more than half will opt for the more expensive $1,299 version instead of the $999 option.”

See here for my colleague Jon Fortt’s live blog of the event.

UPDATE: Apple has made Tuesday’s presentation available as a QuickTime movie. Click here to watch it.

[Photo courtesy of Engadget.]

About the Author
By Philip Elmer-DeWitt
See full bioRight Arrow Button Icon

Latest in


Most Popular

Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

    Latest in


    Most Popular

    © 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
    FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.