Do you think COVID-19 is bad for luxury goods manufacturers? Think again. This can bode very well for Apple products such as the flagship iPhone 12 Pro Max.
Sales in LVMH Moet Hennessy Louis Vuitton SE’s fashion and leather goods division rose by 12%, excluding currency movements, in the third quarter – close to the levels it reached before the pandemic hit.
Andrea Felsted for Bloomberg Opinion:
The bumper performance shows how the demand for expensive handbags, cars and watches bounced back when wealthy consumers could show up from their homes and spend some of the money they saved while locking. It is worth remembering that Europe is once again tightening restrictions on movement.
In China, where consumers could account for 45% of global luxury sales this year, according to Jefferies, customers treated themselves while stores reopened. And this so-called “revenge” phenomenon has spread to the United States and even Europe, as wealthy individuals divert money they would have spent on overseas vacations and restaurant restaurants to upscale boutiques.
Looking ahead, another recipient of this bling boom could be Apple Inc., if the state-of-the-art iPhone 12 Pro becomes available for pre-order on Friday. After saving some money while locking, consumers may be more willing to indulge in the more expensive new handsets: the iPhone 12 Pro Max costs $ 1,199, while the iPhone 12 Mini, with fewer bells and whistles, is priced at $ 649.
MacDailyNews Take: This also bodes well for advanced Apple Watch Edition Series 6 models.
By the way, if you keep the iPhone for three years, it costs an iPhone 12 Pro Max (256 GB) $ 1.09 per day. The cost of an iPhone 12 (256 GB) is $ 0.89 per day. So the difference between spending three years with meat and potatoes iPhone 12 and a state-of-the-art flagship iPhone Pro Mac is 20 cents a day.