Is the iPhone 5S worth $650?

I7guy · Feb 6, 2014

numlock said:
they have been but now with cheaper devices like the nexus, the moto line (will that continue and how?), lumia and possibly xiaomi more pressure will be on apple than in 2008-2011 for instance.

personally think too many at apple seem to have their heads in the (i)clouds and thats not a good thing.

Apples stock price reflects the sentiment of their performance. Apple is the Lexus of the cell phone world. Any company can make a misstep and go from "high flyer" to "high fryer". That's why the CEO pick is so important, as to not let that happen.

And by the way you might as well predict their phones get more expensive and their stock price goes up even further. If you are going to look into your crystal ball might as well play the scenario both ways.

numlock · Feb 6, 2014

I7guy said:
Apples stock price reflects the sentiment of their performance. Apple is the Lexus of the cell phone world. Any company can make a misstep and go from "high flyer" to "high fryer". That's why the CEO pick is so important, as to not let that happen.

And by the way you might as well predict their phones get more expensive and their stock price goes up even further. If you are going to look into your crystal ball might as well play the scenario both ways.

please these apple to car analogies are nonsense. apple is not in some other stratosphere.

the middle class arent getting any wealthier so thats an experiment i would like to see

The-Real-Deal82 · Feb 6, 2014

numlock said:
they have been but now with cheaper devices like the nexus, the moto line (will that continue and how?), lumia and possibly xiaomi more pressure will be on apple than in 2008-2011 for instance.

personally think too many at apple seem to have their heads in the (i)clouds and thats not a good thing.

As long as they keep producing really nice phones that I enjoy using, I don't care how the market their products or what their product expectations are. They are getting it right for my needs.

numlock · Feb 6, 2014

The-Real-Deal82 said:
As long as they keep producing really nice phones that I enjoy using, I don't care how the market their products or what their product expectations are. They are getting it right for my needs.

sure and and i agree with you in many ways.

I7guy · Feb 6, 2014

numlock said:
please these apple to car analogies are nonsense. apple is not in some other stratosphere.

the middle class arent getting any wealthier so thats an experiment i would like to see

These car analogues are right on point, who do you think buys Lexus? Apple produces a premium product, like Lexus. I don't know what you secret hope is, that apple fail?

numlock · Feb 6, 2014

I7guy said:
These car analogues are right on point, who do you think buys Lexus? Apple produces a premium product, like Lexus. I don't know what you secret hope is, that apple fail?

no my secret (now public hope) is that apple improves.

these car analogies are nonsense because apple is always compared to a company of far higher class than there products and the competitor is a lada or something.

look at all the issues people are having. a car like wouldnt even be allowed on the streets.

I7guy · Feb 6, 2014

numlock said:
no my secret (now public hope) is that apple improves.

these car analogies are nonsense because apple is always compared to a company of far higher class than there products and the competitor is a lada or something.

look at all the issues people are having. a car like wouldnt even be allowed on the streets.

Well we will have to disagree, a surprise, on the relevancy of car analogies. All cars, including Lexus, have issues that require service. Granted cars do not get replaced, they get fixed, however iPhones also get fixed.

I also want Apple to improve there is always room for more improvement and more innovation. However it's unlikely that apples momentum is going to go the way of blackberry or Nokia. It could, and an asteroid could also hit the earth destroying civilization.

Bacong · Feb 6, 2014

Sure, because the Nexus 5 isn't a fair comparison. Google is selling the phone at a deep discount because they want to sell you google play wares. iPhone 5s is similar to other phones from Samsung, HTC, LG, etc

aneftp · Feb 6, 2014

I think most are missing the big picture here.

Apple cannot continue to sell 50 plus million iPhone (average selling price is $637) each quarter.

I posted on another forum that I don't think Apple can sustain these number IF their largest market (the USA...I know they just launched in China but the USA is still their largest market) If the US Carriers make progress into having customers pay full price. Those who normally would use their subsidize upgrades, may decide to keep their phones longer than 2 years.

The smartphone market is getting very saturated. The "growth" was between 2009-2011.

$650 is a hard pill to swallow.

Can apple continue to sell @650 price range. Absolutely. But their market share will continue to erode. The iPhone isn't as important as the app store going forward. But Apple can't afford to have people defect to Windows phone OS or lose even more ground to Android in the USA.

MacManTexas56 · Feb 6, 2014

EbookReader said:
Isn't the Nexus 5 available on T-Mobile and Sprint stores?

With T-Mobile, Sprint and AT&T now moving away from subsidies, there will be more people buying compatible unlocked smartphone online.

I wouldn't be surprised if Amazon jump into the smartphone market and sell its smartphone at near break-even like it does with tablets.

yes, but they are still charging $400 for the phone. another $9/month and person can get an iPhone 5s.

they can get an iPhone 4 cheaper. why would they pay more for an android when it's the iPhone they really want in the first place?

Bacong · Feb 6, 2014

aneftp said:
I think most are missing the big picture here.

Apple cannot continue to sell 50 plus million iPhone (average selling price is $637) each quarter.

I posted on another forum that I don't think Apple can sustain these number IF their largest market (the USA...I know they just launched in China but the USA is still their largest market) If the US Carriers make progress into having customers pay full price. Those who normally would use their subsidize upgrades, may decide to keep their phones longer than 2 years.

The smartphone market is getting very saturated. The "growth" was between 2009-2011.

$650 is a hard pill to swallow.

Can apple continue to sell @650 price range. Absolutely. But their market share will continue to erode. The iPhone isn't as important as the app store going forward. But Apple can't afford to have people defect to Windows phone OS or lose even more ground to Android in the USA.

Their marketshare actually increased in q4 2013. What you forget is that in the USA, they are the #1 smartphone manufacturer. iOS might not have more users than Android, but in the USA, more people have an iPhone over any other phone.

Shaqq · Feb 6, 2014

Is the iPhone 5S worth $650?

I paid $480 for mines 16gb was that good? It's new condition with box and all it's unlocked and has a screen protector and came with a case.

blairh · Feb 6, 2014

Keep in mind too that new AT&T customers or current ones switching to mobile share plans will save $15 a month if they purchase off-contract. That's going to get a lot of people thinking about buying used phones or Nexus 5's/Moto G's. A lot of people are not going to pay $600 or more for a phone even though they were paying a hidden fee monthly with their subsidized phones.

I really see a push towards cheaper phones in the future. We, the consumer, need to realize what a ripoff these phones are off-contract. In the past we American consumers just shrugged our shoulders and signed that contract because it wasn't as if we were getting cheaper bills if we didn't sign a contract. But now that is slowly changing. (T-Mobile, AT&T, maybe Sprint?.)

I7guy · Feb 6, 2014

aneftp said:
I think most are missing the big picture here.

Apple cannot continue to sell 50 plus million iPhone (average selling price is $637) each quarter.

I posted on another forum that I don't think Apple can sustain these number IF their largest market (the USA...I know they just launched in China but the USA is still their largest market) If the US Carriers make progress into having customers pay full price. Those who normally would use their subsidize upgrades, may decide to keep their phones longer than 2 years.

The smartphone market is getting very saturated. The "growth" was between 2009-2011.

$650 is a hard pill to swallow.

Can apple continue to sell @650 price range. Absolutely. But their market share will continue to erode. The iPhone isn't as important as the app store going forward. But Apple can't afford to have people defect to Windows phone OS or lose even more ground to Android in the USA.

Can you please point the forum to reliable statistics that show eroding market share?

There will always be a certain churn in the cell industry. Carrier to carrier, one cell phone manufacturer to another.

KeepCalmPeople · Feb 6, 2014

blairh said:
A lot of people are not going to pay $600 or more for a phone even though they were paying a hidden fee monthly with their subsidized phone.

Agreed, but I think there will be a few more factors in play that might affect that:

1) People on tighter budgets will simply not replace their iPhones after two years, they won't necessarily switch to Android. Of all the smartphones, the iPhone has the greatest longevity with iOS and Apple support. The barrier to switch ecosystems to a cheaper Android phone will still be there.

2) Used prices will potentially go higher as people look to recoup as much money as possible since they will be paying full price upfront for their next phone.

C. Robert · Feb 6, 2014

I would pay $650 for a iPhone before I spent $350 for a nexus 5 or any amount of money for any other iPhone. Now if they put the Nokia 1520 in a normal sized phone then I might question my purchase.

I7guy · Feb 6, 2014

KeepCalmPeople said:
Agreed, but I think there will be a few more factors in play that might affect that:

1) People on tighter budgets will simply not replace their iPhones after two years, they won't necessarily switch to Android. Of all the smartphones, the iPhone has the greatest longevity with iOS and Apple support. The barrier to switch ecosystems to a cheaper Android phone will still be there.

2) Used prices will potentially go higher as people look to recoup as much money as possible since they will be paying full price upfront for their next phone.

The subsidy still lives it's just called something different. Tmobile, ATT and verizon all have various means of letting a customer pay off their iPhone using installments, thus allowing the two year upgrade cycle. This is a win-win all the way around.

aneftp · Feb 6, 2014

I7guy said:
Can you please point the forum to reliable statistics that show eroding market share?

There will always be a certain churn in the cell industry. Carrier to carrier, one cell phone manufacturer to another.

We all know Apple is losing market share in non USA markets. Just use a simple google. It's only in the USA that Apple's marketshare has remained stable vs Android. Most of that has to do with the fact most customers in the US still get subsidies and buy iphones are $199/299.

Serelus · Feb 6, 2014

I can honestly say, that the Nexus 5 is the first androidPhone ever since the original iPhone that has gotten me to consider switching.

But I love the ecosystem of Apple I am in, so I am staying for now.
My advice would be to go with Apple, because the support is by far superior.

CEmajr · Feb 6, 2014

I7guy said:
The subsidy still lives it's just called something different. Tmobile, ATT and verizon all have various means of letting a customer pay off their iPhone using installments, thus allowing the two year upgrade cycle. This is a win-win all the way around.

Exactly. All they have done is moved around how the device payment is accounted for. Don't know why people keep hollering "it was only $199 with subsidy now but will be $650 without it" when even with their precious "subsidy" they were paying $650 because the monthly cost was rolled up into an overpriced rate plan.

T-Mobile hasn't had a hard time selling $700 Note 3's and $650 iPhone 5S's and they haven't had subsidies for almost a year. In fact they're selling more phones now than they were when they still had them. Same will happen with the other carriers. Most are not disciplined enough to keep the same phone more than 2 years and will upgrade every year if the carrier tells them they can. Apple is probably watching this "no subsidy, JUMP, NEXT" stuff and loving it because it makes it easier for people to upgrade every year.

Arran · Feb 6, 2014

CEmajr said:
Don't know why people keep hollering "it was only $199 with subsidy now but will be $650 without it"

I agree it's irrational, but holler they do. And possibly have second thoughts. Consumers are not wholly rational. Retailers have been fooling them for years with prices like $99.99 instead of $100.00

Now that the phone price is no longer hidden in some monthly lump-sum payment it, too, can figure in a side-by-side buying decision. Apple $650, Samsung $350. It's as clear as that now. It wasn't before

Bacong · Feb 6, 2014

Arran said:
I agree it's irrational, but holler they do. And possibly have second thoughts. Consumers are not wholly rational. Retailers have been fooling them for years with prices like $99.99 instead of $100.00

Now that the phone price is no longer hidden in some monthly lump-sum payment it, too, can figure in a side-by-side buying decision. Apple $650, Samsung $350. It's as clear as that now. It wasn't before

is the Galaxy s4 or Note 3 $350 off contract?

no?

so where does that $350 come from? some garbage cheap phone?

The Moto G is the ONLY choice when it comes to cheap android phones.

IFRIT · Feb 6, 2014

Merkyworks said:
This is exactly why they have priced the Nexus 5 at this price, this is the only way Google can get people to think about making the change from an iOS device.

The price is more about getting more people on Googles flavour of Android not necessarily poaching iOS customers.

And OP you're comparing the inflated price of an iOS device to a device that Google is almost selling at cost is the price difference is naturally going to be high.

Damn just saw i'm reply to a months old post.

Steve686 · Feb 6, 2014

Apple has created a "I have to have it" market with the iPhone. And releasing two versions of the same phone per year really keeps the buzz, however small, going from model to model.

Until android has the truly user friendly interface that even 80 year old great grandmothers can use fluently like they can iOS, iPhone will stay atop the market.

IFRIT · Feb 6, 2014

parseckadet said:
Listen to this week's TWiT. They had Myriam Joire on, formerly of Engadget, who did a very good job of explaining the pluses and minuses of the Nexus 5 compared to the iPhone.

Here's one other data point that I'll throw in. I just sold my wife's 32GB iPhone 4, which we got about month after launch. It was running iOS7, and I got $170 for a 3.5 year old, well used phone. Show me ANY three year old Android phone that's going to get the Kit-Kat update. Show me ANY three year old Android phone that anyone would still be willing to pay $170 for. Apple supports their devices far longer than any other manufacturer, and their devices retain their value very well.

It may be running iOS 7 but it has hardly any of the features of iOS 7 running on a 5S. And iOS 7 makes the 4 dead slow.

Damn just saw i'm reply to a months old post.

Is the iPhone 5S worth $650?

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