Business Corpus: Apple's New iPads, Macs Most Notable For Price IncreasesApple received good reviews for the new iPads and Mac computers it announced Tuesday, but Wall Street analysts were most intrigued by their higher prices come Wednesday. The post Apple's New iPads, Macs Most Notable For Price Increases appeared first on Investor's Business Daily.

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Apple (AAPL) received good reviews for the new iPads and Mac computers it announced Tuesday, but Wall Street analysts were most intrigued by their higher prices.

"Apple took a page from its recent iPhone strategy by materially raising prices for its new MacBook Air, Mac Mini, and iPad Pro," Nomura Instinet analyst Jeffrey Kvaal said in a report to clients Wednesday.

The new iPads got a roughly 25% price increase over their predecessors. The new MacBook Air is 20% more expensive than the previous model. And the new Mac Mini is a whopping 60% more expensive than its predecessor.

"Apple's 'price to value' philosophy has successfully boosted iPhone ASPs (average selling prices)," Kvaal said. "Today's (product) updates should fare similarly."

But the iPad and Mac product lines combined only contribute about 16% of sales and 10% of profits for Apple. That will limit the impact the new products will have on Apple's top and bottom lines, he said.

Kvaal reiterated his neutral rating on Apple stock with a price target of 215. It rose 2.6% to close at 218.86 on the stock market today.

Some Upside, But This Estimate Unchanged

Jefferies analyst Timothy O'Shea said the new products were impressive, but not enough for him to change his estimates.

"While the new iPad Pro and MacBook Air could drive some upside to our iPad and Mac estimates for fiscal 2019, we didn't see anything that would be thesis-changing at Apple's event in Brooklyn," O'Shea said.

He added, "Apple continues to test higher prices across all its products."

O'Shea maintained his buy rating on Apple stock with a price target of 265.

Prices 20% to 60% Higher For New Apple Devices

The new iPad Pro starts at $799 for the model with an 11-inch display. That's 23% more expensive than its predecessor at $649. The 12.9-inch model starts at $999, which is 25% more expensive than the predecessor at $799.

The second-generation Apple Pencil stylus costs $129, a 30% bump over the prior version at $99.

The new MacBook Air notebook computer starts at $1,199. That's 20% more expensive than the previous model's $999 price.

The Mac Mini desktop computer starts at $799, compared with its predecessor's $499. That's a 60% increase.

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