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Comment by quesera | Hacker News Reader

Walmart and Apple both have very well-earned reputations.

Kind of an "unstoppable force meets immovable object" problem here.

It may have looked like a compromise, but I feel certain that Apple walked away from the negotiation feeling that they got exactly what they wanted.

My first question though: How long will Apple continue to manufacture M1s for sale at Walmart? The M1 has a ton of life in it for normal users. Yes, 8GB, but that's still plenty for most people doing most things.

My guess is that this is a big-retail liquidation of devices Apple is ready to move on from, and not a new long-term price point. We'll see!

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Even if Apple just got their normal distributor markup and nothing else, they just offloaded a metric ton of these things, got a bunch of PR, and have more visibility.

Tons of families will notice a $700 Mac, and Walmart already sells iPhones and watches, so they have worked together.

With respect to:

> My guess is that this is a big-retail liquidation of devices Apple is ready to move on from, and not a new long-term price point. We'll see!

I think this may have staying power. It provides a nice way of selling to a lower tier segment without impacting their higher tier offerings. It provides an on-route to the Apple computing ecosystem for those on slightly lower incomes who would otherwise have to go with the equivalent Windows laptop. Winning at that level gets people deeper into the Apple ecosystem earlier, and more likely in the future to stay in that ecosystem if their economic situation changes (classic example would be budget conscious students)

Good points, and there is precedent right in the Apple ecosystem.

I think it's brilliant that "last year's model" (iPhone, iPad) drops down the good-better-best chain with every product refresh. No new R&D or tooling, still a great product.

There will always be a steady supply of last years' models. And customers to buy them. Apple just has to feel confident that a $700 M1 isn't cannibalizing their $1200 M2s or the upcoming M3s.

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