The prices were always high, but the bundling that all the US carriers used up until a few years back (where they told you the phone cost $100-$200, and then they spread the remainder of the actual cost across your monthly bills), made phones look much less expensive - to most people - than they really were.The price of cell phones are getting ridiculous.
A smart phone is, in many cases, slowly moving towards being the single most important device a person has. It's a tiny networked computer that happens to also make phone calls. Some people want it to do more. I suspect the premium model will allow Apple to try out a lot of features that a) would be too expensive to put in the base iPhone, and b) they couldn't do at quantities approaching a million a day. Some folks will cheerfully line up to get those extra features. And the most popular of those features will likely show up in subsequent years' "normal" iPhone models (once they've got them ramped up to higher yields/quantities). I see this premium model (it won't be called the "8" - they'll have the "7s"/"7s+" per usual plus the "pro" or "edition") as something of a win/win - people who really want to splurge for the extra goodies can have them now, and that'll result in real improvements in next year's normal models.
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