I don't think that will be the logic by customers. Because the iPhone 8 has similar internals as the iPhone X, which wouldn't make it outdated. And if you're referring to the design of the iPhone 8 being outdated, that would be subjective based on one's appreciations. Not to mention, two major advantages with the iPhone X is the OLED display and face ID. Most want to experience Face ID, but it doesn't necessarily justify the price increase based on what they want from the newest iPhone.
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Analysts are wrong. Slow ip8 sales will destroy ipX sales
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I don't think that will be the logic by customers. Because the iPhone 8 has similar internals as the iPhone X, which wouldn't make it outdated. And if you're referring to the design of the iPhone 8 being outdated, that would be subjective based on one's appreciations. Not to mention, two major advantages with the iPhone X is the OLED display and face ID. Most want to experience Face ID, but it doesn't necessarily justify the price increase based on what they want from the newest iPhone.
don't you think FaceID being an advantage is very subjective?
A lot of people prefer TouchID over FaceID
I think you misunderstood my post. The two advantages to upgrade to the iPhone X , are the OLED display and face ID. Those who upgrade to the iPhone X are willingly to accepting face ID being the new primary for security. Those who strictly prefer touch ID, will obviously not upgrade to the iPhone X.
1. I don't think Apple had a choice but to announce the iPhone 8 right now. The iPhone X is delayed because of shipment issues. If they only announced the iPhone 8 right now and not the X then in 2 months when they announced the X, customers would be furious. This begs the question why release the 8 in the first place. My guess is cost & revenue. They probably want to get the A11 and other new parts into their products as soon as possible to max economics of scale. The iPhone 8 is $50 more expensive than the 7 so they can increase their gross margin.
2. Apple is planning on selling less units of the iPhone X. By increasing the price to 1000 it's almost a given that the device will sell less. Apple is focusing on max net income. The iPhone X has nearly twice the margin as the 8 so they only need to sell half as many as the 7 to make the same revenue. Odds are they will sell more than half. If the supply chain cannot meet the iPhone X demand, which the rumors suggest, then it makes sense to increase the price as they'll still sell out and it will deter scalpers from reselling the device.
2. Apple is planning on selling less units of the iPhone X. By increasing the price to 1000 it's almost a given that the device will sell less. Apple is focusing on max net income. The iPhone X has nearly twice the margin as the 8 so they only need to sell half as many as the 7 to make the same revenue. Odds are they will sell more than half. If the supply chain cannot meet the iPhone X demand, which the rumors suggest, then it makes sense to increase the price as they'll still sell out and it will deter scalpers from reselling the device.
I don’t think th back orders will be bad. Early adopters will buy and the rest will wait and see.
We still don’t know how this will pan out over time. Maybe the 8 will be a consistent seller over time rather than having blockbuster sales at the start.
All the tit for tat on here is pretty amusing. We’ve got people here treating these latest iPhone models like some kind of football team that you’ve got to pledge allegiance to lol.
Both models will be attractive within their respective markets. The iPhone 8 will be attractive to general iPhone users who just want to upgrade to the latest iPhone without paying silly money. The X is more niche and carries a high price tag that sets itself away from regular earners. Both will sell well and I have seen nothing to suggest the 8 will do badly. I know several people who already own one and my local Apple store said interest has been healthy so far.
At the end of the day these devices pretty much do exactly the same thing. Nobody really cares what phone you are using except yourself. Nobody is going to look down their nose at you or pity you for owning an iPhone 8 unless they are shallow and immature. I really don’t know why so many of you here are obsessed with pushing the status of your choice? It’s rather pathetic at times.
Both models will be attractive within their respective markets. The iPhone 8 will be attractive to general iPhone users who just want to upgrade to the latest iPhone without paying silly money. The X is more niche and carries a high price tag that sets itself away from regular earners. Both will sell well and I have seen nothing to suggest the 8 will do badly. I know several people who already own one and my local Apple store said interest has been healthy so far.
At the end of the day these devices pretty much do exactly the same thing. Nobody really cares what phone you are using except yourself. Nobody is going to look down their nose at you or pity you for owning an iPhone 8 unless they are shallow and immature. I really don’t know why so many of you here are obsessed with pushing the status of your choice? It’s rather pathetic at times.
I know I’m on annual leave that day so it won’t be difficult. I mean being available to do the pre order getting the ore order in.
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You don’t know that the iPhone X is twice the margin of the iPhone 8. I’m sure plenty of R&D went into that ARKit and the facial recognition technology. It took at least 3years to develop and manufacture. I’m sure Apple wants to recoup capital costs and such. Do we know how much that notch and Apples OLED designs actually costs to make and produce? No we don’t know. You are just speculating without any basis.
Pretty sure the facial tech was developed by another company that Apple recently bought. The same company provided the R&D to Microsoft for Kinekt.
They still spent the money. Not by doing any research themselves but the money was spent to acquire the tech.
Yeah, you have a point with that. I left it out of my post and figured that's what you meant to say, but wasn't sure. Though, aside from recouping investment into the company, it lays groundwork for future development. Especially if Apple doesn't fire the team that came with the company.
The bottom line is Apple did had to not only coopt the technology for use in the phone but they also had to create all of the software behind it. That means they had to create all new hardware customized for the iPhone along with the software needed. That’s expensive.
Frankly I’d be really happy if iPhone X sales tanked.
- It will be a lot easier to get
- Apple stock might finally drop below $100 again. Great time to buy the stock if it happens.
- Apple will be pushed to move even more rapidly and lower the prices of the next iPhone.
What makes you think they will lower the price to the point of no longer being profitable at all? Usually the first iteration of a product is higher in price and we all know that chip prices have gone up significantly this year.Frankly I’d be really happy if iPhone X sales tanked.
Really we can’t lose.
- It will be a lot easier to get
- Apple stock might finally drop below $100 again. Great time to buy the stock if it happens.
- Apple will be pushed to move even more rapidly and lower the prices of the next iPhone.
I bet both models sell well. Loved this introduction, no lines and got what I wanted with no hassle.
The iPhone X will be a hot commodity for a couple reasons.
First and I think most importantly, availability will be heavily constrained. Because yields are so low, there's going to be so few. So in a supply and demand line of thinking, the demand may not be be high but the supply is so low, its going to be flying off the shelf, to use another poster's term.
Secondly, it has an apple logo on the back and it represents the first major update to the iPhone in several years, This is not lost on the apple faithful and so I think there will be people who must have the latest and greatest.
First and I think most importantly, availability will be heavily constrained. Because yields are so low, there's going to be so few. So in a supply and demand line of thinking, the demand may not be be high but the supply is so low, its going to be flying off the shelf, to use another poster's term.
Secondly, it has an apple logo on the back and it represents the first major update to the iPhone in several years, This is not lost on the apple faithful and so I think there will be people who must have the latest and greatest.
Hmmm... I'm not saying that the current iPhone X is terribly overpriced. I actually lean towards agreeing with the recent report that the cost of manufacturing for the iPhone X is much higher relative to the price listed.
However, my point is that if the iPhone X sales were to tank, why would they not lower it? It's a great way to recapture market share, and I can guarantee you Apple can easily take the losses. You have to remember that Apple has a ridiculous $250 billion cash hoard. That's not even a valuation - it's hard cash - I've always found that ridiculous - the valuations of many tech unicorns aren't even at that level
.e.g. Uber was valued at $70 billion at its peak, and AirBnB at $30 billion. Combined, their valuations aren't even at half of Apple's cash hoard.
It makes no sense to make products that don’t generate profit especially with only a year or two’s time line for maximum sales. Yeah Apple could afford to take a hit. Maybe they already are. I know first gen redesigns typically mean lower profit margins until they can get supply to meet up with demand. The optics of it though would not be good for future products utilizing FaceID and AR.Hmmm... I'm not saying that the current iPhone X is terribly overpriced. I actually lean towards agreeing with the recent report that the cost of manufacturing for the iPhone X is much higher relative to the price listed.
However, my point is that if the iPhone X sales were to tank, why would they not lower it? It's a great way to recapture market share, and I can guarantee you Apple can easily take the losses. You have to remember that Apple has a ridiculous $250 billion cash hoard. That's not even a valuation - it's hard cash - I've always found that ridiculous - the valuations of many tech unicorns aren't even at that level
e.g. Uber was valued at $70 billion at its peak, and AirBnB at $30 billion. Combined, their valuations aren't even at half of Apple's cash hoard.
Personally I think the 8 and 8+ probably feel the most like Steve approved phones than anything since the 4 and 4S.
Amazon operated with razor thin margins / losses for a long time, and I’d say their strategy has worked out quite well.
I’m not suggesting they actually make a loss anyway. You have to take my point in context, if the sales tank, Apple could simply lower their margins to zero or near zero to recapture the market. If the sales tank.
While I agree with most of what you said as far as people getting fed up with Apple with the crap they have been pulling the last couple of years, how do you know the OLED on the iPhone X is subpar to the competitors? The OLED panels are made by Samsung, and they make the best OLED screen you can buy. Also, Apple has seemed to improve the OLED screen even more with the iPhone X with the Super Retina Display. Just wondering what your source is on this? Thanks
Here are two links. Obviously we won't know true facts until phone comes out. However both of these touch on the oled drawbacks of this iPhone. Add to fact this is Apples first, we could see issues even though they usually implement new hardware better than competitors via iOS. I'm alway amazed how some phones will have better hardware specs but still come short compare to Apples when testing.
https://www.forbes.com/sites/gordon...-release-date-battery-life-specs-problem/amp/
https://amp.businessinsider.com/oled-screen-apple-iphone-x-explainer-2017-9
R&D is sunk cost.
“Once spent, such costs are sunk and should have no effect on future pricing decisions. So a pharmaceutical company's attempt to justify high prices because of the need to recoup R&D expenses is fallacious. The company will charge market prices whether R&D had cost one dollar or one million dollars.”
Market price is where Price*Quantity=Max Revenue. (think of peak of a bell curve). So sunk costs have no influence on pricing decision.