I'll admit that I was wrong. My bottom price was $549 if it had everything the 6s has minus 3D Touch. Apple has never shot for a low price like this before. It breaks just about every rule that they have set about being a premium company—I mean isn't this is actually kinda worrying?
Maybe this price is going to be spread out over several years like the iPod Touch, so that it doesn't get upgraded very often and the components come down in price over time? Maybe they're negotiating even better prices on components? Maybe it has inferior materials such as the display, much like the iPod Touch? I'm trying to find something here. Do you think that they will be moving to an all-robotic production line? That Liam robot sure looked really advanced in what it could do taking devices apart. Why couldn't it also put the whole thing together? That could save some costs.
Maybe they will come out with the iPhone Pro line this autumn, and the increase in margins on that will offset having a lower cost option that brings more people to iOS and away from cheaper Android models? Maybe that would increase the total number of users while also increasing overall profits when averaged from high-end to low-end? It seems to be the strategy for the iPad. The iPad Pro starts at $200 more. Perhaps the iPhone 7 will also be a little cheaper, and the iPhone Pro will be a little more expensive? So $549 instead of $649 but not have all the fancy new features, but still some improvements and new design? Then the Pro model would start at like $749?
I just…my brain is broken right now with this price. It's great that they could price it this low, but I'm just trying to figure out how, especially as I'm an investor. Some of the things I said above I think could justify it somewhat, but that's a pretty big cut of 38.5%. Maybe this is a long bet on their future? Bring in customers and get them hooked into other upsells like Apple Watches with different bands, iPhone cases, iPads with their pencils and keyboards, Macs, etc? This is a really ballsy move.