Once again, Apple may surprise its fan base later this year with the dispersion of ‘lower price’ tagged MacBook Air, which is currently priced around $999 or $1999, depending on specifications.

According to the most accurate Apple analyst, Ming-Chi Kuo of KGI Securities, Apple may release the cheaper version of 13-inch MacBook Air model. Kuo has projected the overall sales of MacBook models will grow 10-15% year-on-year in 2018. The product will have to compete against Windows-dominating laptop market and the high-end Chrome books. However, contrary to the continuous up gradation in iPhone, MacBook Air has not seen any noticeable change in the last three years.

Kuo has mentioned the timeframe as the second quarter (Q2) of 2018 for the new development. So, the concrete details of the new MacBook Air could be heard in Apple's Worldwide Developers Conference (WWDC) held in June annually.

cheaper MacBook Air

With the launch of a cheaper MacBook Air later this year, Apple seems to be eyeing the sales volume over market skimming.

Ming-Chi Kuo is an analyst for KGI Securities, a Taiwan-based business group. His core area is technology with a focus on the tech giant Apple. It is said that he uses his vast contacts in Apple's Asian supply chain and as well as in the company itself to gather information and translate it into research notes for KGI Securities' clients. This has made him known as the most precise analyst on Apple’s future products.

Revealing no further details on the product, Kuo is also hopeful about the release of rumored 6.1-inch LCD iPhone, an updated version of AirPod, and high-end over-ears headphones. The latter two products may see growth based on the future of Apple's artificial intelligence (AI) and augmented reality (AR) goals. Kuo seems to be quite reluctant about HomePod as its demand is mediocre.

Market Penetration VS Market Skimming

In view of the predictions by Kuo, Apple seems to be altering its pricing strategy to appeal the masses. The company is eyeing upon the sales volume over market skimming. This step may also be taken to seize the student market, considering its high potential and low purchasing capacity.

While taking advantage of the cheap price, the concern arises regarding the impact on the brand image of Apple in the current scenario. Apple is known for its high priced products based on its exclusive engineering, elite design, excellent customer service and limited edition. If what the Kuo has said comes up true, there are two things to look up to:

  • Apple’s ability to capture the market with the new strategy and satisfy customers’ expectations together.
  • The reaction of the loyal customers to the mass-appealing strategy of Apple.

In recent months, Apple has regained its investors’ and consumers’ faith with the release of iPhone X, post the iPhone slowdown debacle. We hope a shift in the foundation policy cheers up the company’s fan base as well as its profit margin.