Will price hikes force Apple to stop dragging its feet on certain product upgrades?

Earlier this summer, Apple raised prices on several of its products, such as the iPad Air, M5 MacBook Pro, and Apple TV. These price increases were significant, with the iPad Air going from $599 to $749, the MacBook Pro from $1699 to $1999, and the Apple TV from $129 to $199. These steep price hikes have led to questions about whether Apple will focus on major improvements to make its products more appealing at these new prices.

Apple's products, such as the MacBook Pro and iPad mini, are set to receive overhauls soon. However, for other products, like those without major upgrades in the pipeline, it seems unlikely that Apple will successfully sell yesterday's tech at much higher prices. Buyers might find it hard to justify paying more for a product that has remained largely unchanged for years, especially when compared to the used market where prices are generally lower.

Take the iPad Air, for instance. It has kept the same design and feature set since 2020, with only minor improvements such as chip upgrades and the Apple Pencil Pro. The base iPad has remained largely the same since 2022, while the iMac has seen little change since 2021. While these products don't necessarily demand a redesign, Apple could make them more enticing at their existing price points.

For example, adding miniLED displays to the iMac, implementing 120Hz on the iPad Air, or using a laminated display on the base iPad would be relatively inexpensive upgrades. These changes could help users feel better about purchasing at the new, higher prices.

On the other hand, Apple could potentially downgrade some products to offset the higher prices. One possible scenario is a return of 128GB iPhones. It remains to be seen how Apple will respond to these price hikes and whether it will prioritize product enhancements or product downsizing to maintain its competitive edge.