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Other Future iPhone pricing thoughts

Ralfi

Ralfi

macrumors 601
Original poster
Dec 22, 2016
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Australia
OLED/Face ID have moved the goal posts in terms of asking price & price differences between iPhone models. Whether Apple have been fair with today's asking prices is to be debated, but having 3 models with 3 screen sizes (not in relative order) has allowed them to convince the public that the costs are justified.

IMO, when comparing to past iPhone non-Plus & Plus releases, the inflation of the higher tier iPhone (XS/Max) cost combined with the reduction of features in the lower tier iPhone (XR) aren't justified...at this point in time. But I feel the costs of both OLED/Face ID & other current tech will decrease & we should see a return to prices similar to what we saw in the past.

For eg.
When I purchased my 6S outright, it was the XR-equivalent, price-wise. The 6S+ was ~$300-400 more iirc, yet it was still below the price of the XS/Max.

The differences between the 6S & 6S+ were minimal compared to the XR & XS/Max. The 6S was a much more capable device (versus the 6S+) & less lacking compared to the XR (when up against the XS/Max).

But the tech wasn't as new back then, so we saw an upper price tier well below of what we see now.

Apple could & should've done more to not inflate prices as they have. But they're a trillion dollar business so you've got to understand them wanting to gouge as much $$$ as they can...

But what happens 3-4 years from now - new tech will be introduced, but will that tech be as significant as the most expensive tech in iPhones today & allow Apple to retain current pricing tiers, or will the major cost components (OLED & Face ID etc.) have lowered, thereby decreasing the RRP of iPhones similar to what we had in the past?

Do people think iPhone pricing will decrease over time, remain as is, or continue to rise?
 
Component costs have been going up and Aaples margins have Ben getting smaller. Apple has compensated through services but it seems higher prices are the new norm.

Samsung’s pricing on the displays Apple uses has been going up faster than the price of other components. This is probably why Apple is now considering LG as a supplier of phone displays.
 
Vermifuge said:
Component costs have been going up and Aaples margins have Ben getting smaller. Apple has compensated through services but it seems higher prices are the new norm.

Samsung’s pricing on the displays Apple uses has been going up faster than the price of other components. This is probably why Apple is now considering LG as a supplier of phone displays.
Click to expand...

Component costs are more but not that much more to justify the prices.
 
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Ebok said:
Component costs are more but not that much more to justify the prices.
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I never said anything about justifying the price. I said Apple’s margins have decreased and increasing the price is helping to bring them back up.

A lot of things in life have a cost higher than the what it costs to make. That’s capitalism. This isn’t a charity my friend, you also have the choice of buying an older iPhone or even that of a competitor. Apple will charge whatever the market will tolerate.
 
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Vermifuge said:
Component costs have been going up and Aaples margins have Ben getting smaller. Apple has compensated through services but it seems higher prices are the new norm.

Samsung’s pricing on the displays Apple uses has been going up faster than the price of other components. This is probably why Apple is now considering LG as a supplier of phone displays.
Click to expand...

It'll be interesting to see how future costs change from this single component alteration.

The 5.5" Pixel 3 uses the LG screen & is priced at AU$1349 for the 128GB, which is a price i'd like to see the 5.8" iPhone at, eventually...I'm a dreamer...
 
My 65" LG OLED for my home theater was $2500... which means Apple will price the next iPhone with an OLED display somewhere around $4000.

(I personally don't care about OLED on my phone due to the fact OLED is best viewed in a dark environment which is usually the exact opposite of how most of us use our phones.)
 
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Sooooo many of these threads lately.

Ok, in a free market there are NO "overpriced" products as long as people are purchasing them. I wouldn't matter if all the components cost $10 and apple charged $5000 for the phone. As long as people are willing to buy the phone, it is by definition, "worth it".

Also what people fail to remember is the overhead for developing products. There is a long lead time and high expenses in bringing complicated devices to market, including research, marketing, etc. Just because the components cost a certain amount doesn't mean that is the true cost to produce it.

People vote with their wallet. When Apple's phones are not worth it, people won't buy them anymore.
 
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Ralfi said:
Do people think iPhone pricing will decrease over time, remain as is, or continue to rise?
Click to expand...

The question should be, is there really a limit pricing for iPhone technology as it continues to progress? Apple is a trendsetter, they set market value what they believe their products are worth based off the dividend of manufacturing costs/marketing and of course net profit, as long is carrier monthly payments exist, they make it an easier transition for the consumer to want to have a latest device based off monthly payments.
 
Given increasing trade tariffs and trumps adgenda and apple always charging what the market will tolerate it is likely prices will only ever go up

I like my XS Max, but I also am under no illusion that it's not overpriced
 
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I’d like to see the XR remain at the same cost but put the cost of the XS Max line up to around £2k and make it properly premium with enough technology to really justify why it costs more lol. Stick a diamond or two in for good measure.

Seriously though as long as people are paying I think Apple can raise prices again. Enough people admire them for their profits so why not?
 
Relentless Power said:
they set market value what they believe their products are worth based off the dividend of manufacturing costs/marketing and of course net profit
Click to expand...

Hahah... what is the manufacturing cost of the latest iPhone? I'm sure there's a chart somewhere. Have the Chinese gotten a raise yet?

The-Real-Deal82 said:
Seriously though as long as people are paying I think Apple can raise prices again. Enough people admire them for their profits so why not?
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Ain't that the truth. I'm not one of them though. I haven't drawn the line yet... but I think I'm there with the 8 Plus I bought last year. $999 over 2 years is probably the most I'm willing to pay. I'm definitely not a cheapskate either... I paid $2500 for my OLED TV... $1700 for my GH5 camera and then another $1200 and $500 for 2 lenses... plus $500 for my One X and just over $4000 when I built my PC.

Still... I refuse to be bent over by Apple.
 
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TravisPNW said:
Ain't that the truth. I'm not one of them though. I haven't drawn the line yet... but I think I'm there with the 8 Plus I bought last year. $999 over 2 years is probably the most I'm willing to pay. I'm definitely not a cheapskate either... I paid $2500 for my OLED TV... $1700 for my GH5 camera and then another $1200 and $500 for 2 lenses... plus $500 for my One X and just over $4000 when I built my PC.

Still... I refuse to be bent over by Apple.
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I’m totally with you there. I’d say £750 is the absolute maximum I’d pay for a phone and not exceeding £1k on a two year contract. I find it bizarre how phones are changing so little yet prices are going up? I bought an 8+ about 3 or 4 weeks ago and it’s confirmed for me you don’t have to buy the latest device anymore to get a decent phone. It’s not through lack of affordability, I just think certain companies are taking the piss and over marketing things like slightly brighter screens. I thought it was funny that it’s all about the screen for Apple with the XS but then they tell you it doesn’t make any difference with the XR? Hmmmm ok Phil.

TV’s are a great example of how the opposite is true. In 2005 I paid £2500 for an LCD TV as flat screens were a new phenomenon back then. Fast forward 13 years and I’d never dream of paying more than £500 for one. Like phones I think that industry has reached plateau and people are paying for very minor differences however most people keep a TV for at least 5 years these days. I wouldn’t put it past Apple to raise prices further to be honest. Some people do get a kick out of paying £1500 for a phone though so it plays to these types.
 
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I have an Xs Max and will be eligible for upgrade this September. However I plan to wait until the 2020 iPhones arrive.
I don’t even want to think about what the pricing will be!
 
Guess iPhone prices didn’t have that much an impact over sales.

c3bd176e0155a220a688daff60c673cd.jpg


Apple is still the number 1 premium smartphone oem, globally speaking.
 
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FFR said:
Guess iPhone prices didn’t have that much an impact over sales.

c3bd176e0155a220a688daff60c673cd.jpg


Apple is still the number 1 premium smartphone oem, globally speaking.
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they 100% did. that's why apple didn't release the numbers.
 
In India they reduced XR pricing by around 23% and now it’s a mega hit. Sold out everywhere. Apple’s supply now is far less than the Indian demand for XR at it’s new price.

What does this tell you? That Apple didn’t expect such a surge in demand just by a 23% price reduction. But it happened.

Apple needs to learn its lesson.
 
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aakshey said:
In India they reduced XR pricing by around 23% and now it’s a mega hit. Sold out everywhere. Apple’s supply now is far less than the Indian demand for XR at it’s new price.

What does this tell you? That Apple didn’t expect such a surge in demand just by a 23% price reduction. But it happened.

Apple needs to learn its lesson.
Click to expand...


They dropped prices in China too but the base xr was still almost $1000.

What was the final price after discount?
 
JPack said:
$850 in India.

Is it a "mega hit"? The XR sales ranking on Amazon.in is #98 out of 100. The top 20 smartphones being sold are all $200 or less.

https://www.amazon.in/gp/bestsellers/electronics/1805560031/
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So after the price cut the xr is still $100 more in India then it is in the US.

No idea what kind of lesson the poster wants apple to learn in India, charge a 100 dollars more for a smartphone and it will become a “megahit”.

I’m not really following the other posters logic.

That’s because almost all phones sold in India are quite low in price. Sales of smartphones starting at 600 dollars, premium smartphones in India, are quite minuscule at around 4%.
 
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FFR said:
If apple introduces a 1tb iPhone then price will increase.
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Well Apple could possibly hold off 1tb till next year and release it at same price.
I think they need a couple years freeze on prices to be honest.
The market is too competitive at the moment.
 
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