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Apple is innovating. All the custom silicon (Ax/Tx), things like the screen, cameras, and FaceId. All of those items make the iPhones more expensive to manufacture. Apple's company margins have remained the same while raising prices. If the increase in service revenue is also factored in, along with its naturally high margin, then the iPhone margins have been shrinking with every generation.

Maybe Apple got too far out in front with innovation causing the phone price to go up too much too quickly. Simply complaining about prices is not understanding the whole situation.

I’m pretty sure that Apple’s margins are stable with only small fluctuations. What’s happened though, is that they’re now adding features that cost a lot more but add less value. Example of faceid. I like it, probably more than touchid, but the cost isn’t worth it for me. Same with the oled display. I honestly hardly notice it. Same with the speed. I’m sure it’s faster, but I don’t notice because all recent phones are very fast.
 
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Apple needs to dump the XR and move the XS to $799 64 GB. Admit the mistake and move on. I hope they really don’t plan on releasing another LCD iPhone in 2019.

This is not 2010 anymore when the Chinese didn’t have their hands on the latest tech. Sony once dominated consumer electronics and look at them now barely hanging on as a high-end TV manufacturer. All of the other Japanese giants quit years ago.
The XR would be a great midrange phone. Just sell it at midrange prices (about half it costs now).
If necessary made some sort of A12 lite or whatever needs to get it a bit cheaper to produce, be it using A11, using A12 lower clocked... they would know.
The moment they loose a customer to Android it will be very difficult to get it back. A Huawei 200€ phone looks better than the XR (because it has a good screen).
The MBA is a lot cheaper than the MBP and still they are just fine as it is.
 
This moment was going to come sooner or later. The market is very near it’s saturation point. Just about everyone who wants a decent smart phone has one. And iPhones that are 3 or 4 years old still perform good enough. Those people will just get a new one when there’s gets super slow again or dies completely. There are still millions of us who prefer to upgrade ever 2-3 years so the iPhone isn’t going anywhere.

And to those saying there isn’t any innovation in the XS or XR are full of it. The problem is only partially pricing since the X was 999 last year and I see loads of them around in daily life. Even the XR is an amazing device. They could have released that last year at 749 and it would have stole the show completely and sold even better than the X did. It’s a mix of strategy and pricing along with market saturation. But it’s definitely not a lack of innovation. Face ID is amazing as are the cameras in these phones. I came from a 6S to an XR and was completely blown away especially by the cameras.
 
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Cut Tim's pay (if you must keep him around) and the retail price of iPhones and you got yourself a sound plan for the company
 
Apple cannot lower the prices abruptly. It's a damaging solution when we factor in the impact it will have on the brand, long term. It will set a precedent that Apple can price their devices lower than the premiums they're asking now, leading many to expect those "low prices" going forward, making Apple lose their premium brand status. It will also make it more obvious that they're struggling and that they're overpricing.

They should only do it this once for iPhone. They really messed up and it wasn’t this past year. They messed up in 2017 releasing the X alongside the 8/8 Plus.

I understand that they didn’t want to look bad considering that Samsung beat them to the bezel less design with the S8 but it wouldn’t have been the first time that Apple was late.
 
What’s happened [...] is that they’re now adding features that cost a lot more but add less value. [...] oled display [...] I honestly hardly notice it. Same with the speed. I’m sure it’s faster, but I don’t notice

When you can't come up with real innovation, all you have left is to put in a bit better screen, a bit better processor, bit better....

Problem is, people really don't care that much.
 
Get rid of the SJW masquerading as a CEO and cut the price 50%. No phone is worth $1000.

No, that would be suicide. While the prices are high especially outside of America, you have to keep in mind that Apple isn’t Huawei. They have an image to protect. Not more than $150-200.
 
A lot of the advice in here is very short-sighted. We can’t forget that this is happening to the smartphone market as a whole, not just Apple. It’s a result of smartphones maturing as a market. Samsung faced significantly lower sales than expectedly on their Galaxy S9s.

Also, this:
Apple cannot lower the prices abruptly. It's a damaging solution when we factor in the impact it will have on the brand, long term. It will set a precedent that Apple can price their devices lower than the premiums they're asking now, leading many to expect those "low prices" going forward, making Apple lose their premium brand status. It will also make it more obvious that they're struggling and that they're overpricing.

Also, in a land of lawsuit-obsessed people (America), they surely will receive flak from them for not being offered the new price points even if the phones have been released many months ago. Trust me, I worked for a mobile carrier once, and we have people demanding free phones since they're "still in the contract," even if the damage was caused by their own recklessness, threatening us with lawsuits if they don't get their way.

People also seem to not be realizing iRutherford’s point. Marketing 101: Discounts might work in the short-term, but they ruin your brand image, can ruin customer loyalty, and make things worse for the business in the long-run. And again, imagine the outrage from huge Apple loyalists who bought the devices already for full price.

Let me also mention that the Galaxy Note 9 was released at $1000 and went up to $1250. The Google Pixel 3 starts at $800 and the Pixel XL starts at $900. Apple isn’t the only one that has high smartphone prices.

It’d be stupid and would hurt Apple in the long run to lower prices now. The entire smartphone market is facing decreased demand, not just Apple.
 
This is just my opinion...

But I think many people are / were alright with purchasing a $1200 phone... ONCE. They aren't going to be buying them yearly, though. At that price people are going to hang onto them for two, even three years. It's just an unnecessary and unwanted expense. I'll spend that money elsewhere.
 
I think innovation is one of the reasons but the most important is the PRICE!

HELLO APPLE! $1500 for a freaking phone!!! C’mon now! I would buy an XS if it were $650 not $1000!
 
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I saw so many commercials for the XR during the playoff games. And me with my iPhone 8, I never once thought "maybe they've convinced me to switch".

Meanwhile, Tim Cook is out lobbying for privacy and government oversight. The good ol' redirection trick that magicians use.

It's glaringly obviously that Tim has run his course, but I think they've got no one to take the lead.
 
Just bought a Xiaomi A2 Lite for 200 euros all in (220ish USD) for my mother. Europe here.

It comes with Android One, which is stock android straight from Google. Software experience is phenomenal, everything is fast and fluid. Android app ecosystem in 2019 is finally great. Has dual cams that take decent pictures. It does things 95% as good as a new iPhone would for 1/4th of the price...

I would have still got her an iPhone, even at twice the price or a bit more, but with current Apple pricing and offerings it's just impossible to justify the cost when the options out there have gotten so good for a fraction of the price.
 
In all honesty, even though Apple makes the highest quality phones, best software etc., there really hasn't been any significant upgrades other than face id to make todays phones stand out over my daughters iphone 6. Looks the same when we unlock. Innovation is the key, but we may have plateaued on that.
 
it´s quite simple really, phones are no longer on a yearly upgrade cycle for enthusiasts. even the tech savvy people are sticking with their phones for 2-3 years, this is not new, but it has gained traction since the iPhone X.

I think, for next year, apple will release the two top phones (Xi and Xi plus, probably with another name...?), but the Xr will remain as is, possibly/probably lower the price by ~100$
I don´t see the Xr being upgraded more then every other year. And to upgrade it during the s years makes sense, as to bring it into the spotlight when the top phones have a more modest upgrade.
 
I came from a 6S to an XR and was completely blown away especially by the cameras.

You are in the minority, coming from a 6S. I would bet most have a 7 or 8. Comparing a 6s to a XR, there's going to be some evidence of innovation. But most are probably 8 or X... an the innovation in lacking between generations. It used to be that the features between generations were so compelling, many would upgrade to get them, and it was almost a no brainer.

Explain to me what the XR has over my 8. I could care less about Face ID..... My photos look great, and I don't see a noticeable difference between mine and my friends with the XR.

Apple is getting destroyed by Google and Huawei. I want google night sight... and what about a simple freaking charging mat?
 
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