So the currently accepted wisdom is that apple will release 3 models this september.
7S
7S+
iPhone "edition"
Most people seem to think that we will see the standard iPhone pricing maintained on the "S" models and a much higher price on the "edition".
With this in mind, how will apple set their lineup next year. They are breaking the 2 year redesign cycle mid stream but not completely.
Ultimately the "edition" is what apple will be using as a baseline for the next few years. The current iPhone 7 design is the same as the 6 so we have had it for 3 years and once the 7S is done it will have had a 4 years as the design (minus some very very minor tweaks).
This is where the problem is. Come next September they will have to make a decision. They will probably have a "edition +" model with a larger screen but then they will have the normal "edition" that they have sold for a lot of money just a year earlier. Part of the value of an apple device is its resale value. You buy a new one every year and you can sell last years for a decent sum.
If they do the above, that simply won't be possible. That $1200 device you bought last year will suddenly be competing with an updated version with better spec that can be bought new for $650 give or take. How much will people pay for that? $400 if you are lucky?
Their other two options look like:
1. Keep the price higher for the "edition" and keep the (what will be) 4 year old design going as an economy model at the current price. I don't think that apple customers will like the idea that they are buying the "latest" iphone when there is a much nicer/better phone that is released at the same time with the flagship feature set and they are essentially second class citizens. Apple have never really done this with any other product as far as I can see either. iPad has loads of models but thats more screen size. The actual functionality is almost identical. Apple Watch has a massive variance in price but ultimately its the same watch at its core.
2. Move the whole pricing structure up a few hundred for each model which in my view would be utterly suicidal. Most people are happy to pay a lot of money for their iphone (and it is a lot) but stick another few hundred on that and I think they would lose a lot of sales.
So, how do you think Apple are going to fix this mid cycle / premium iPhone issue? Personally I don't think its going to be nearly as expensive as some people are suggesting. If I was apple I would consider making the 7S cost less than it currently does and make the "edition" model perhaps $100 more than the current iPhone. Well either that or there will be no 7S models.
7S
7S+
iPhone "edition"
Most people seem to think that we will see the standard iPhone pricing maintained on the "S" models and a much higher price on the "edition".
With this in mind, how will apple set their lineup next year. They are breaking the 2 year redesign cycle mid stream but not completely.
Ultimately the "edition" is what apple will be using as a baseline for the next few years. The current iPhone 7 design is the same as the 6 so we have had it for 3 years and once the 7S is done it will have had a 4 years as the design (minus some very very minor tweaks).
This is where the problem is. Come next September they will have to make a decision. They will probably have a "edition +" model with a larger screen but then they will have the normal "edition" that they have sold for a lot of money just a year earlier. Part of the value of an apple device is its resale value. You buy a new one every year and you can sell last years for a decent sum.
If they do the above, that simply won't be possible. That $1200 device you bought last year will suddenly be competing with an updated version with better spec that can be bought new for $650 give or take. How much will people pay for that? $400 if you are lucky?
Their other two options look like:
1. Keep the price higher for the "edition" and keep the (what will be) 4 year old design going as an economy model at the current price. I don't think that apple customers will like the idea that they are buying the "latest" iphone when there is a much nicer/better phone that is released at the same time with the flagship feature set and they are essentially second class citizens. Apple have never really done this with any other product as far as I can see either. iPad has loads of models but thats more screen size. The actual functionality is almost identical. Apple Watch has a massive variance in price but ultimately its the same watch at its core.
2. Move the whole pricing structure up a few hundred for each model which in my view would be utterly suicidal. Most people are happy to pay a lot of money for their iphone (and it is a lot) but stick another few hundred on that and I think they would lose a lot of sales.
So, how do you think Apple are going to fix this mid cycle / premium iPhone issue? Personally I don't think its going to be nearly as expensive as some people are suggesting. If I was apple I would consider making the 7S cost less than it currently does and make the "edition" model perhaps $100 more than the current iPhone. Well either that or there will be no 7S models.
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