Look at Apple’s marketing, look how they target certain features about the iPhones with animoji, the camera, Face ID, they are trying to entice the consumer why they would want to upgrade to have the Latest technology. Some simply are just not interested in it because it doesn’t appeal to them, as they see their older model iPhones working perfectly fine, which again, not everybody’s Apples target audience for the most expensive iPhone they offer. But you also have to take in consideration what the consumer can afford and what they cannot, which is another prohibitive factor for some.
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iPhone X Apple is losing its mainstream, non-fan core with the X
- Thread starter MarkB786
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Look at Apple’s marketing, look how they target certain features about the iPhones with animoji, the camera, Face ID, they are trying to entice the consumer why they would want to upgrade to have the Latest technology. Some simply are just not interested in it because it doesn’t appeal to them, as they see their older model iPhones working perfectly fine, which again, not everybody’s Apples target audience for the most expensive iPhone they offer. But you also have to take in consideration what the consumer can afford and what they cannot, which is another prohibitive factor for some.
That may apply to some people but my preferences and a lot of people I know have changed purely based on price. I still enjoy seeing the new technology and would upgrade to an XS if it were more sensibly priced. I could certainly afford it and being a 30 something, professional with a good salary I would say I’m perhaps ideal to Apple.
But that’s just it, the iPhone won’t be ‘sensibly priced’ for the for Forseebale future because of the rising cost of smart phones with technology, inflation, marketing, etc. If you choose not to Purchase Apple iPhones due to costs, then again, you’re not their target audience if you prefer to keep an older device with older technology, regardless if you can afford it or not. You Made the conscious decision that the iPhone XS is not within your budgetary concerns being that you would not appreciate that technology as it is with the $1000 starting price, given you just purchased an iPhone 8 for significantly less, Which you’re more than content with. Its all about the differentials of what one wants and would utilize in a smart phone.
I’m dubious about the costs causing the phones to rise in price due to the fact there is around a £700 markup on every single iPhone sold. Working in R&D myself I am aware companies recoup costs within the retail price but Apple make massive profits beyond that. It’s bigger than it’s ever been and as a consumer I do feel like they are taking the Michael somewhat.
I do appreciate the technology in the XS and would have enjoyed trying it out but the eye watering price turns me off. It goes beyond being a tech enthusiast and weighing up the pros and cons of whether I feel a device is worth the money.
I agree. With the first few iphones things and tech were DRASTICALLY changing. The first phone, to the 3g/3gs, to the 4 were drastic changes to the product. Then the 6/6+ which were highest selling of all time when they introduced a bigger device.
Of course price comes into effect when a phone costs $1000 and the average US gross salary is $56k; after taxes that's like $3500 take-home and have to pay for increased housing costs, increased food cost, increased healthcare cost, (plus auto insurance, gas, utilities, etc). Meanwhile, wages are not rising. Regardless if its $50/month; which most people are already in debt or living paycheck to paycheck.
Apple's profits on newer devices are not in fact bigger than they have ever been. I keep seeing this thrown around because of the price tag, and "oh but Apple is so greedy that's why the price is ridiculous" but it doesn't make it any truer when looking at the facts.
This is in Australian money, but we're only concerned with the gray line and % profit for each device. And why they used an XS 256gb which bigger storage is a bigger margine than 64gb is unknown. So that last point is really lower using a 64gb.
But as you can see there have been MANY prior iPhone models (as they dont list every storage config) with higher profit margins and no one complained. The 6 and 7 series were more profitable per unit than the X or XS/Max series or any other iphone.
People just want to make excuses why they don't like the pricing, and Apple is the easy punching bag to simply say it's because they are greedy; instead of costs to research and build new tech is simply proportionally higher.
But the numbers dont support Apple is making any more margin per device on new phones versus old. If Apple was greedy the trend line would look very very different and a near 45 degree line from the iphone 5 up to XS.
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My dad changed based on price but that was ages ago. He’d had the iPhone 3G, 4 and 5. He wanted the 6 plus when it came out but said it was too expensive to buy both on contract and outright as he wanted the 128GB version. He said he was going to wait until the 6S plus came out and see if the 6 plus went down in price. Even when the 6S plus came out he still thought he price was too high so he got a note 4 and this year he got a note 8. His iPhone 5 still works but he doesn’t use it much anymore.
Obviously the prices of the x and the max would be unacceptable to him now.
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I think Apple are trying to appeal to a range of customers which is why they are putting out so many phones now at different price points. They want to get you somewhere. They only place they aren’t interested in going is the low end but they still keep the older phones around and make devices like the Xr to appeal to people who don’t want to pay for an Xs or a max.
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Since the X came out the prices have increased dramatically by several hundred pounds/dollars. Before the X there were gradual increases year over year. When the X came out the price increase by about £200.I agree. With the first few iphones things and tech were DRASTICALLY changing. The first phone, to the 3g/3gs, to the 4 were drastic changes to the product. Then the 6/6+ which were highest selling of all time when they introduced a bigger device.
Of course price comes into effect when a phone costs $1000 and the average US gross salary is $56k; after taxes that's like $3500 take-home and have to pay for increased housing costs, increased food cost, increased healthcare cost, (plus auto insurance, gas, utilities, etc). Meanwhile, wages are not rising. Regardless if its $50/month; which most people are already in debt or living paycheck to paycheck.
Apple's profits on newer devices are not in fact bigger than they have ever been. I keep seeing this thrown around because of the price tag, and "oh but Apple is so greedy that's why the price is ridiculous" but it doesn't make it any truer when looking at the facts.
This is in Australian money, but we're only concerned with the gray line and % profit for each device. And why they used an XS 256gb which bigger storage is a bigger margine than 64gb is unknown. So that last point is really lower using a 64gb.
But as you can see there have been MANY prior iPhone models (as they dont list every storage config) with higher profit margins and no one complained. The 6 and 7 series were more profitable per unit than the X or XS/Max series or any other iphone.
People just want to make excuses why they don't like the pricing, and Apple is the easy punching bag to simply say it's because they are greedy; instead of costs to research and build new tech is simply proportionally higher.
But the numbers dont support Apple is making any more margin per device on new phones versus old. If Apple was greedy the trend line would look very very different and a near 45 degree line from the iphone 5 up to XS.
The max starts at 1.1 k here but you could get a plus starting at around £700.
I have the max and I had the X. I paid because I like the phone and wanted to stay in the ecosystem. However on a technological level there are other devices out there that are on a similar level and don’t cost as much. I’m not saying Apple are greedy, they are a business and can charge whatever they want for their products especially if the market will pay.
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Apple is making their lower end products even less appealing then they were before. The XR display is inferior to the 8 Plus display with its low resolution. It lacks a dual camera and the Taptic engine and is being sold at the same price point as the Plus used to. Those buying at that price point are getting less at the same price.
It’s only pros are it has the flashy design and FaceID. Other than that they stripped it of many nice features.
Actually, it’s kind of opposite with their latest iPhone reduction in their lineup. Apple has been expanding their iPhone demographic for quite some time now, they had just this last year, the iPhone SE as an entry-level device at $350, the iPhone 6s, iPhone 7 and up. But more recently, they eliminated the iPhone SE, 6S, and now emphasizing the iPhone 7, 8 and XR.
But the XR still if you look at it as a whole, it’s a lot of phone for what it’s offering, but it still priced fairly high at $750. The iPhone 7 and iPhone 8 are now considered almost the entry-level iPhones. Apple doesn’t even market the iPhone 7 or iPhone 8, it’s all about the XR and XS. I also understand if they would have kept the iPhones 6S/SE in their lineup, It would have been way too many iPhone options including the XR, which is why they wanted to consolidate those other options, that way they can have a consumer focused on the XR as a potential upgrade from those who have an iPhone 6 or 7.
It is a strange time to release the XR when September is the busiest month of the year for upgrades for iPhone users. This of course set by Apple in previous years. I know loads of people who have upgraded already with their contracts ending and I do wonder how many have any idea the XR is around the corner? With the absence of any TV advertising yet I do think it’s strange to delay it so long after the XS.
Apple’s appeal has certainly changed for me, the only question is whether that’s a problem for them or deliberate strategy. In previous years I would always have strived to own the latest and greatest, but since last year the latest and greatest is simply too expensive, and has left the remaining options (the iPhone 8 last year and the XR this year) seem unnecessarily gimped and undesirable in comparison. My last upgrade was to an SE since it did at least present good value, but next year - honestly I don’t know. The XS is excessive, the XR is a poor imitation for the money, again I feel more inclined to move further down the line and pick up a cheaper phone that’s better value. So they’re getting less money from people like me, but presumably they don’t care about that if they’re selling enough at the XS/XR level; presumably.
It has nothing to do with holiday sales. If it had anything to do with holiday sales, then they would release the XS around that same time frame. Apple purposely is releasing the XR in October to create its own launch, it has its own spot light to help increase sales to emphasize this new phone. That’s what Apple wants, releasing all three iPhones together in September may have been too much for the consumer to make a decision at that time, by creating separation, allows for a differential between their higher premium phones, compared to the new entry level XR with Face ID at a Lower price point.
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That is why I think it’s strange as those due to upgrade in August and September may not wait an extra 5-7 weeks. It’s a month after the busiest upgrade month of the year and iPhone 7’s and 8’s are already being offered on excellent deals. This emphasis on FaceID probably carries less weight to the average consumer than offering the phone in a range of colours, however I’ve seen very little advertising for the XR so far.
Or they really are having trouble with the edge to edge lcd display, which to my knowledge has never been done before. Not on lcd and not without both a forehead and chin.
I too have not observed very much advertising for the XR, I expect more marketing to start flourishing here in the next week or so, being that the pre-order is quickly approaching. Most consumers likely don’t pay attention to the keynote, so Apples marketing would have to step it up if they want advocate this $750 iPhone.
I’ll be interested to see how close in price it is on contract to the 8+ considering the price difference is small at retail for the device. I have a feeling it’ll carry a significant premium simply because it’s newer and that will be a factor with convincing consumers to pick the XR I think.
You either follow or you lead. Apple leads. They may not be the first with a tech, but they refine it and combine it with features to push the market the way it wants it to go.
EVERY TECH COMPANY FOLLOWS APPLE.
Hence, the customers also follow.
EVERY TECH COMPANY FOLLOWS APPLE.
Hence, the customers also follow.
To the best of my knowledge, no it has not been done before. But I’m very interested to see how they accomplish an edge to edge lcd display.
We should know more within the next two weeks.
If we are speaking in terms of the iPhone, [which we all are], you can’t classify Apples as ‘catering to the luxury’, when smart phone manufacturers in general have also raised their prices such a Samsung as well. Smart phones in general have increased in cost, it’s not just Apple.
They don't advertise something that isn't available yet. The commercials will hit on/after release day.
They maybe should consider a ‘coming soon’ Ad when launches are late in the year I think. I know certain carriers are doing this through social media but I’ve only stumbled across a couple. The phone has of course been unveiled so it’s no secret to those who watched the keynote but not many people in the grand scheme watch it. I know from personal experience there are people completely unaware of its existence yet have upgraded as their contracts were up last month. Just an observation.
Apple seem to be the only company that hold/fix the retail price for nearly a year though. The Galaxy Note 9 was £1k when it was released a couple of months back but it’s already available for around £730 sim free. This is perhaps due to lesser demand though.