Apple isn’t just revolutionizing personal computers with its new M1 chip. They’re getting big, too: Analysts say Apple will rake in $ 2.5 billion annually on the MacBook Pro, MacBook Air, and Mac Mini alone. All thanks to the low cost of its M1 CPU compared to paying Intel and not lowering the final prices of those products.
According Sumit Gupta – AI strategy leader at IBM – Apple would spend $ 40 to $ 50 to produce each M1 chip in MacBook Pro 13 M1, MacBook Air M1 and Mac Mini M1, compared to $ 175-250 it was paying Intel for CPU .
Apparently, financial gain played as important a role as technology in the migration to this new architecture.
Icing on the cake
Gupta’s estimates may be more or less accurate, but it is clear that Apple is going to be lined up again. It is already the electronics company with the highest margins on its cell phones, tablets and computers. Now that median margin will go even higher.
It is clear that it would have been better for Apple to lower the price of its machines and maintain the previous margins, but that is not its business model. And, after all, the new MacBooks and Mac Mini are a consumer wonder. Added to its higher power is a much lower power consumption, which leads to an incredible battery life. And also the compatibility with iOS and iPadOS applications. The new Macs, in other words, add tremendous value. That they have maintained the price will be more than acceptable for most users.
Ultimately, Apple has not only succeeded with the migration on a technical level – it has also taken the jackpot.