The article discusses Apple's recent release of $700 wheels for their Mac Pro workstation and the subsequent backlash from critics. The author agrees that the price is outrageous but argues that the criticism is playing into Apple's hands. Apple creates such products to serve multiple purposes: to make a profit, to create a perception of scarcity and prestige, and to generate free brand exposure through publicity. These products are often "halo products" that create a luxury image for the brand, even if they don't sell well. The author suggests that Apple chose to release the expensive wheels for the Mac Pro because the Mac community is smaller and less likely to be offended compared to the iPhone community. The video ends with a discussion on how Apple's business model is focused on maintaining a luxury brand image, even if it means sacrificing sales volume.
Here are the key facts extracted from the text:
1. Apple recently put up for sale $700 wheels for their Mac Pro workstation.
2. The author of an article on Forbes mocked the price tag of the wheels, finding it outrageous.
3. The Mac Pro itself starts at a higher price point than the wheels.
4. The $700 wheels are not a one-off product, but rather part of a pattern of Apple releasing expensive, luxury products.
5. Apple has released several other expensive products in recent years, including a solid gold Apple Watch that cost $10 to $17,000.
6. The solid gold Apple Watch became obsolete after just three years when Apple dropped software support.
7. Apple also released a PictureBook that cost $2 to $300 and served no purpose other than to market Apple's products.
8. The company released a $1,000 monitor stand that lacked basic features like swivel and height adjust.
9. Apple's luxury products are not designed to be sold in large quantities, but rather to create a perception of scarcity and prestige.
10. The products are also designed to create free brand exposure and publicity for Apple.
11. The Mac Pro 2019 is viewed by Apple as an unnecessary luxury product that they can sacrifice sales volume on in order to maintain the illusion of being a luxury brand.
12. Apple's gross margins are around 38%, which is lower than those of actual luxury brands and software giants.
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