Other Is Apple going to keep charging $1,000+ for new iPhones every year?

[Cigsm]

Elides the superior tech, you’re paying for resale value: you can get 70-80% of your money back with a year old iPhone. A samesung will lose half its value the day you purchase it.

You’re paying for excellent customer service with a one year warranty where you can take your product into a dedicated store to have it fixed by the manufacturer.

You’re paying for education in the fact that you can take group or one on one classes on every aspect of an iPhone for free at an Apple store.

All of it is built into the price.

I disagree. Apple might be offering current tech but they are charging a lot more for it than other android manufacturers. The iPhone Xs max starts at £1,099 in the U.K. and that’s for 64GB of storage. The note 9 which has more features than the max costs the same same but you get 512GB of internal storage. The base note 9 is only £899 over here and you get 128GB of storage.

Apple seem to be charging a lot more than Samsung who also offer cutting edge premium tech.

It’s only the ecosystem that’s keeping me with Apple.

 

[Cigsm]

I just sold my iPhone 8 Plus for $750. I paid off the $500 remaining dollars from the iUp program meaning I paid only $250 to use the phone for a year. I could have kept it and paid it off in a year and then sold it for $400 or so. I’d rather have a new phone every year. I don’t mind paying $22 a month to do so.

With iPhone crossing the $1,000 threshold, I actually think programs like iPhone Upgrade and carrier financing make less sense. If I buy a $1,249 iPhone XS Max, I would do it planning on holding on to the phone for at least two years and trading in the residual value (probably $400 or $500 in two years) towards the purchase of the new phone. If you buy on an iPhone Upgrade program, you are conditioning yourself to basically leasing a phone on a continual basis, with ever increasing lease payments and no ownership. Everytime you upgrade your phone in a year with a marginal update, you start your lease over, probably at a higher payment, with no utility gained. That could work if you are buying a $700 or $800 device that you truly are going to keep for one year, but in the era of laptop priced phones with laptop-like life cycles, it doesn't pencil out anymore.

 

[gregrichards]

I am a bit horrified by the price increase to get a Macbook Pro and XS Max 512gb would be over £3000 which is insane. The XS Max contracts are nearly the price of leasing a Smart car per month. It is going to be a real shame if the prices go higher and higher as less and less people will be able to experience these great products. I really wonder when the market will start resisting more.
[doublepost=1537245224][/doublepost]

Elides the superior tech, you’re paying for resale value: you can get 70-80% of your money back with a year old iPhone. A samesung will lose half its value the day you purchase it.

You’re paying for excellent customer service with a one year warranty where you can take your product into a dedicated store to have it fixed by the manufacturer.

You’re paying for education in the fact that you can take group or one on one classes on every aspect of an iPhone for free at an Apple store.

All of it is built into the price.

The price depreciation is a big problem with Samsung phones and I don't say this because I am an Apple fanboy. I think it is because the phones are usually cheaper and a lot more common around the world and there is less demand.

 

[Shanghaichica]

Elides the superior tech, you’re paying for resale value: you can get 70-80% of your money back with a year old iPhone. A samesung will lose half its value the day you purchase it.

You’re paying for excellent customer service with a one year warranty where you can take your product into a dedicated store to have it fixed by the manufacturer.

You’re paying for education in the fact that you can take group or one on one classes on every aspect of an iPhone for free at an Apple store.

All of it is built into the price.

I’m happy to pay for that. I don’t think the iPhone is necessarily the best phone out there in terms of specs and cutting edge tech but it is the best in terms of experience, software, long term support etc.

 

[The-Real-Deal82]

I’m happy to pay for that. I don’t think the iPhone is necessarily the best phone out there in terms of specs and cutting edge tech but it is the best in terms of experience, software, long term support etc.

I totally agree with that. We are seeing a lot of criticism for the likes of Samsung here since the latest X series have come out and I don’t think many realise that if it wasn’t for the competition we wouldn’t have a phone the quality of the X. Bigger phones, all screen displays, OLED are all features Apple have brought to their market as a reaction to what others are doing. In real world use pretty much all flagship smartphones are as fast as each other too albeit a fraction of a second here and there.

 

[pika2000]

Except Samsung has experienced pushback with its latest series 9 range. People just aren't buying. Too few new features and too high a price apparently.

Apple will get away with the same tactic. Turning the iPhone into a Giffen good seems to be good for business.

Does Samsung actually learn their "lesson"? The Note 9 is $999, and they keep increasing the prices of every new Galaxy A lineup (while taking away features, the A6 is basically a J series (lower end) phone sold at higher price).

But that's not the point. Samsung, and I believe Apple, are aware that smartphone is being commoditised. Apple still has a USP with their Ax chips and iOS, but companies like Sony, HTC, LG, etc have lost to the Chinese OEMs selling the same spec for half or less. I mean how can you justify an SD845 Galaxy Note 9 when a Poco F1 has the same chip for $300? Samsung realises their time will come. Thus the focus on other parts of the business, like fabs, NAND, display, etc. Apple is starting to explore AR and services. I'm sure Tim Cook is smart, and doesn't think Apple can survive on just the iPhone forever. In the meantime, upping the prices can help their ASP and margins while they are transitioning/shifting focus.

 

[NovemberWhiskey]

To be fair, it's not just a cell phone anymore. It's your entire life.

Camera, video camera, computer, phone, photo album, messenger, etc.etc. If you bought a camera with the same performance, that's at least 500 alone.

I mean, the tech inside this "phone" is really amazing. IMO, even worth more than the 1k they charge. I amazed they could pack so much in it.

The end of carrier subsidies did not stop people from buying 800 iPhones. I don't see 1000 stopping anyone.

I see people making 30k or less with iPhone X.

 

[FFR]

Yes but Iphone SE wass only 400 dollars. And att has it now for 194.99 at bestbuy prepaid. Its prepaid but its still an iphone. And my iparents 6 was only 650 dollars. So even the basic at 1100 dollars is almost double. And the max at 1449 dollars is slightly over double. So 650 dollars was bot bad. So it is expensive now. It was back then but not too bad compared to now. And we will never have a 650 again. Even used it will take years to get a 650. Apple does bot depreciate much.

iPhone se was an update to a three year old phone not a new product category.

iPhone X doesn’t replace the 6.
The Xr is a replacement for the 6/6s/7/8 series.

At 750 dollars it is a modest price increase compared to 650 dollars for the 6s, 4 years later.

X/Xs/xs max is a new product catalogry for the iPhone series, with new price tiers.

This is what I don’t understand, a Mac mini user will not chastise Apple for releasing the Mac Pro, it’s a different product category. If they did they would get mocked. Different users different price points.

 

[FFR]

I’m happy to pay for that. I don’t think the iPhone is necessarily the best phone out there in terms of specs and cutting edge tech but it is the best in terms of experience, software, long term support etc.

I disagree, a 7nm Soc with a 8core npu, nvme storage and secure 3D facial biometrics is the definition of cutting edge in 2018.

How anyone can say otherwise is beyond me.

The note 9 is a rebranded s9 with stylus and digitizer, they have a Version with extra storage and and 2 extra gb of ram, You can’t seriously call that cutting edge in 2018.

 

[Vundu]

In a few years they will probably be over 2k. They wont go down if people keep buying.

 

[Adelphos33]

I just sold my iPhone 8 Plus for $750. I paid off the $500 remaining dollars from the iUp program meaning I paid only $250 to use the phone for a year. I could have kept it and paid it off in a year and then sold it for $400 or so. I’d rather have a new phone every year. I don’t mind paying $22 a month to do so.

Nice sales price on the 8+

 

[1050792]

To be fair, it's not just a cell phone anymore. It's your entire life.

Camera, video camera, computer, phone, photo album, messenger, etc.etc. If you bought a camera with the same performance, that's at least 500 alone.

I mean, the tech inside this "phone" is really amazing. IMO, even worth more than the 1k they charge. I amazed they could pack so much in it.

The end of carrier subsidies did not stop people from buying 800 iPhones. I don't see 1000 stopping anyone.

I see people making 30k or less with iPhone X.

"even worth more than the 1k they charge" don't give them ideas... 1k is already too much for a stab of glass.

 

[FFR]

To be fair, it's not just a cell phone anymore. It's your entire life.

Camera, video camera, computer, phone, photo album, messenger, etc.etc. If you bought a camera with the same performance, that's at least 500 alone.

I mean, the tech inside this "phone" is really amazing. IMO, even worth more than the 1k they charge. I amazed they could pack so much in it.

The end of carrier subsidies did not stop people from buying 800 iPhones. I don't see 1000 stopping anyone.

I see people making 30k or less with iPhone X.

1k was in 2017.
It’s up to £1500 now, doesn’t seem to hamper sales/demand.

 

[The Game 161]

If it sell well then why not?

 

[44267547]

To be fair, it's not just a cell phone anymore. It's your entire life.

Camera, video camera, computer, phone, photo album, messenger, etc.etc. If you bought a camera with the same performance, that's at least 500 alone.

I mean, the tech inside this "phone" is really amazing. IMO, even worth more than the 1k they charge. I amazed they could pack so much in it.

The end of carrier subsidies did not stop people from buying 800 iPhones. I don't see 1000 stopping anyone.

I see people making 30k or less with iPhone X.

I agree with everything you’re saying, but even with all that included technology, does the consumer really have an understanding and take full advantage of that technology? Likely not. So I think they justify the price point based off what key features compel them to want to upgrade for that Price point, and if they don’t find enough compelling features, they simply keep the device that they are using, assuming it works perfectly fine.

 

[The-Real-Deal82]

I agree with everything you’re saying, but even with all that included technology, does the consumer really have an understanding and take full advantage of that technology? Likely not. So I think they justify the price point based off what key features compel them to want to upgrade for that Price point, and if they don’t find enough compelling features, they simply keep the device that they are using, assuming it works perfectly fine.

I definitely think more people are keeping phones longer these days due to price increases and phones not changing enough. Are people generally bothered if a processor opens an app slightly faster or the camera is a fraction better? We over analyse that stuff in here but most people I know would look what phone looks nice and how much it costs. If it’s an iPhone they trust it without looking at what it offers.

 

[ivnj]

iPhone se was an update to a three year old phone not a new product category.

iPhone X doesn’t replace the 6.
The Xr is a replacement for the 6/6s/7/8 series.

At 750 dollars it is a modest price increase compared to 650 dollars for the 6s, 4 years later.

X/Xs/xs max is a new product catalogry for the iPhone series, with new price tiers.

This is what I don’t understand, a Mac mini user will not chastise Apple for releasing the Mac Pro, it’s a different product category. If they did they would get mocked. Different users different price points.

I'm sorry. I did not know there was an XR. Well as long as there is an under 1000 option its ok. But I am afraid soon next 5 years there wi be no sub 1000 option.

 

[FFR]

I'm sorry. I did not know there was an XR. Well as long as there is an under 1000 option its ok. But I am afraid soon next 5 years there wi be no sub 1000 option.

Don’t worry about it.

X and Xs are catering to a higher price range that’s all.

No sub 1000 option, Don’t think that’s going to happen. Cook went on tv today saying he wants to have a price point for everyone.

 

[kazmac]

Yes. It is unfortunate, but the masses spoke and were willing to pay, so of course prices go up. That is Apple’s M.O. lately - raise the price to bolster profits.

I just wish they continued to make a phone in $500-600 range that isn’t a generation or two old.

 

[HeadphoneAddict]

But Apple does offer nice and current/powerful iPhones for well under $1000.

Don't forget that the iPhone 8 is still a pretty great smartphone, and a 64GB 8+ is still $699. And, a 64GB Xr is just $50 more, or another $50 to get the iPhone Xr at 128GB for $799.

That's a lot of phone for the money, and I'd likely pick the Xr if I didn't have $1000-$1450 plus tax and AppleCare+ for the flagship models. Also, with iCloud drive and iCloud photo library and iMessage on the cloud then 64GB could be very useable, while 32GB is a bit too low due to the size of Apps these days.

I'm sorry. I did not know there was an XR. Well as long as there is an under 1000 option its ok. But I am afraid soon next 5 years there wi be no sub 1000 option.

You must have missed my post from Friday (quoted above), that was only 12 posts before your first one. It had a bit to say about the Xr coming in well under $1000.

 

[Dark()Sun]

But Apple does offer nice and current/powerful iPhones for well under $1000.

Don't forget that the iPhone 8 is still a pretty great smartphone, and a 64GB 8+ is still $699.

the 8 is a great phone

 

[HeadphoneAddict]

the 8 is a great phone

Yes it is. When my daughter graduated from college I offered to replace her broken iPhone 6 with an iPhone X, and she picked the 8 instead because it was more familiar and had the same performance.

And I've been using a spare 7+ to replace my iPad Mini 4 that I gave my son for college, since my iPad Air 2 is too big to take everywhere. That's also a great phone.

 

[FriendlyMackle]

And at these same price points? I'm sorry, but I like having the nicest phone, even if I know I may not necessarily need all of the features. I would like to wait for the XI, but if it costs the same as the Xs Max, I'm just gonna buy the Xs Max instead of letting the value depreciate.

You really should have created a Poll. I'd be fascinated to see how people respond by the numbers! LOL.
Because...yes, the answer IS self-evident. If it continues to sell, then certainly. That is what one does as part of a profit-oriented concern...build the best product you can and sell it at the best price (for you) that the market will bear.
[doublepost=1537420121][/doublepost]

I would say the XS is current tech just like Android manufacturers have offered for a number of years now, it’s just Apple have caught up by putting OLED screens and wireless charging. The XR is a cheaper to manufacture option offered at a premium price but marketed as affordable. Apple make lots of money this way and rely on long time customers not switching platforms.

First: I am NOT trying to start a flame-war here!
This is my perception of situation:

While I don't disagree about switching platforms—I wouldn't do so for many reasons, not least of which is interoperability—I use Apple computers, iPads, an Apple Watch, and a HomePod. I have no idea how many others have similar equipment setups, but there is a real benefit to the fluidity and ease of communication between mobile and desktop/home systems.

I do disagree with you about Android having tech comparable in the finer details to the iPhone. Consider the A-12 CPU, GPU, Neural Engine, W3 Chip and advanced integrations between all of these units, and most importantly the Face ID System.

If you read the well-informed technology bloggers/journalist writings (for instance, on Anandtech) and even analyses by top tech industry analyst Ming Chi Kuo, regarding the various iPhone tech which is unavailable on Android phones due to being entirely designed by Apple, they have consistently assessed the CPU, GPU, Face ID system (real 3D imaging and advanced processing, nothing at all like the 2D tech touted by Android phone makers) to be at least 2 years more advanced than those available to the Android phone makers.

I am not saying that Android phones are not advanced in other areas. I am just saying that Apple devices have unique components and software because they design them themselves and do not (and will never, I venture) license their designs to competitors. So, an iPhone is a closed system in which an Android phone maker will never gain entrance. Yes, to a certain degree, they compete. And to a certain degree they are exclusive of each other. Ideas obviously 'carry' between systems and manufacturers.

After all, every iPhone, and (potential) competitors all have overwhelmingly similar features in general: high-resolution screen, large screen, excellent color reproduction, the latest WiFi/AC, 5.0 BlueTooth, now 'Gigabit' LTE (which is really just LTE as it is described by the IEEE in the international standard! The corporations here in the U.S. of America had to have our very own 'special'='lower data capacity' LTE), multi-touch, NFC, capable cameras, advanced photo-processing software, high-end materials and feel, wireless charging capabilities, and so on. OLED screen production has until recently been extremely limited in quality and production capacity. Apple could not have produced enough OLED screens a few years ago to sell iPhones using them. Apple has spent millions to fund additional manufacturers (Samsung competitors) to develop competing and equivalent OLED manufacturing lines and increase capacity as well as longevity. Likewise, they have done the same with their implementations of OLED on iPhones. The burn-in, ghosting, etc of other OLEDs are not a problem on Apple's phones.

 

[Ixon2001]

Well i for one won't be paying the prices Apple is asking for the latest iPhones, being in my 40's I'm alot more sensible with my money currently have a SE for Work, Nokia 7 Plus & a iPad 2018 all of which falls well under the price of the XS.

I've no doubt some people mainly the young who cant afford it, will put themselves into debt just for the sake of having the latest & greatest, even the price of contracts with the latest XS & XS Max are silly in the UK.

 

[The-Real-Deal82]

You really should have created a Poll. I'd be fascinated to see how people respond by the numbers! LOL.
Because...yes, the answer IS self-evident. If it continues to sell, then certainly. That is what one does as part of a profit-oriented concern...build the best product you can and sell it at the best price (for you) that the market will bear.
[doublepost=1537420121][/doublepost]
First: I am NOT trying to start a flame-war here!
This is my perception of situation:

While I don't disagree about switching platforms—I wouldn't do so for many reasons, not least of which is interoperability—I use Apple computers, iPads, an Apple Watch, and a HomePod. I have no idea how many others have similar equipment setups, but there is a real benefit to the fluidity and ease of communication between mobile and desktop/home systems.

I do disagree with you about Android having tech comparable in the finer details to the iPhone. Consider the A-12 CPU, GPU, Neural Engine, W3 Chip and advanced integrations between all of these units, and most importantly the Face ID System.

If you read the well-informed technology bloggers/journalist writings (for instance, on Anandtech) and even analyses by top tech industry analyst Ming Chi Kuo, regarding the various iPhone tech which is unavailable on Android phones due to being entirely designed by Apple, they have consistently assessed the CPU, GPU, Face ID system (real 3D imaging and advanced processing, nothing at all like the 2D tech touted by Android phone makers) to be at least 2 years more advanced than those available to the Android phone makers.

I am not saying that Android phones are not advanced in other areas. I am just saying that Apple devices have unique components and software because they design them themselves and do not (and will never, I venture) license their designs to competitors. So, an iPhone is a closed system in which an Android phone maker will never gain entrance. Yes, to a certain degree, they compete. And to a certain degree they are exclusive of each other. Ideas obviously 'carry' between systems and manufacturers.

After all, every iPhone, and (potential) competitors all have overwhelmingly similar features in general: high-resolution screen, large screen, excellent color reproduction, the latest WiFi/AC, 5.0 BlueTooth, now 'Gigabit' LTE (which is really just LTE as it is described by the IEEE in the international standard! The corporations here in the U.S. of America had to have our very own 'special'='lower data capacity' LTE), multi-touch, NFC, capable cameras, advanced photo-processing software, high-end materials and feel, wireless charging capabilities, and so on. OLED screen production has until recently been extremely limited in quality and production capacity. Apple could not have produced enough OLED screens a few years ago to sell iPhones using them. Apple has spent millions to fund additional manufacturers (Samsung competitors) to develop competing and equivalent OLED manufacturing lines and increase capacity as well as longevity. Likewise, they have done the same with their implementations of OLED on iPhones. The burn-in, ghosting, etc of other OLEDs are not a problem on Apple's phones.

I can’t disagree with what you’ve said here as I have no clue about processors etc. I was just talking about features at a consumer level and it feels only now are we seeing Apple match Android for giving us better choice.

I upgraded to an iPhone 8 last night so I’m looking forward to testing out a faster and more powerful version of my 6S. OLED and the A12 is at least two years away for me but I doubt i’ll struggle lol.