“We believe the biggest news of the day was the $100 price increase on the new iPad Air, from $499 to $599. We view this as evidence that Apple continues to experience a spike in iPad demand, and that the company is confident that a 20% price increase won’t slow it down. We estimate that the overall iPad lineup accounts for 11% of total revenue, with the iPad Air accounting for about 4%,” writes Munster.
He points out that the most recent examples of Apple’s upsell mastery includes the new Apple Watch SE, the higher-priced 4th generation iPad Air and the bundling of Apple services.
On a broad look, he notes that the company continues to motivate customers to pay more due the value-add of the tech products. A simple equation that has been working in Cupertino for a bit of time.