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Apple still collects $1,000. The payment plans are financed by the carriers that sell the phone, or in the case of the IUP, by Citizens Bank.

Apple gets the money up front. But from an opportunity cost perspective, installation payments do not suck the same money out of the economy. If I buy a car for Christmas and make a slightly higher payment after my trade, it's not like I spent the entire cost of the car for Christmas and that money isn't available for other things.

That's the situation for AT&T Next, Verizon Edge and Apple Upgrade customers.

Apple will make a lot of revenue, but that's being financed in many situations by carriers/Apple's financing company.
 
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To be honest, the $1000 price tag caused me to take a step back and examine how much I was spending on technology.

I’m not buying a new phone this year for the first time since the iPhone 3GS.
Unfortunately most decent phones are that expensive.
 
What? People will have plenty of cash if they choose a payment plan. Most people will spend the money in hand for Christmas presents, even if it means they have to pay $40 for the next two years.

Bologna.
 
Disagree. Nobody I know bought with an installment plan (I would if it was offered - why pass up a zero interest loan?). Carrier plans aren’t universal around the world and habits in other countries aren’t the same as the US.

Then we have the untold millions of devices bought online from Apple, which are almost certainly bought with a credit card, not on installment.

According to a BGR survey earlier this month, around 10% of US iphones were bought from Apple. Over 70% were sold by carriers. There's a reason why Apple rolled out there IUP program to match with US carriers were doing. Most people aren't going to tie up that much money on a phone...especially for grandma and the kids if they have to pay it upfront. But if you tell them it's only $40 a month, you're market explodes.

Subsidization and the subsequent 'interest-free 24 month financing' is why Apple has sold an insane amount of devices in the US.
 
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Unfortunately most decent phones are that expensive.

The iPhone SE is a "decent" phone. I think the word you are looking for is "flagship" phones. You can get a "premium" phone for $500-$700
 
First iPhone I don't want. I really want a tactile Home button, not another gesture. Reviews I read confirm my view that the tactile home button is missed by users of the phone.

Reviews say the face recognition is fine, when it works. Doesn't work all the time. My iPhone 7's tactile home button always unlocks with my thumb print.

Aspect ratio of the new screen isn't utilized by many apps, even some of Apple's apps, so that new screen often has black bars a the top and bottom.

Optical stabilization on the camera is the only feature I really want.

Apparently, it gets hot.

The glass on the back of my iPhone 4 broke years ago. Glass on the back isn't a smart design feature.

Meh. I'm really looking forward to a new modular Mac Pro, next year.
 
But don't most people buy it on one of the various installment plan options? Either through their carrier or Apple directly?

For better or worse, that pretty much eliminates the psychological "I just spent $1000 on a phone..." mindset which is the crux of this analysts argument.

I agree -- aside from the nearly $200 I've spent upfront (which was accounted for by setting that money aside a while ago) on the phone due to buying out the rest of my 6s and the tax on the X, my monthly bill will be $4/mo less with the AT&T Next 30-month plan. Additionally, I have someone who's planning on buying my 6s for $250 -- so actually I come out ahead.
 
This post reeks of FAKE NEWS.

First off they only sold out because of production issues, not demand. Sure they could have sold more, but how many?

Pot meet Kettle, Kettle meet Pot. Talk about "Fake News," no one can definitively say Apple is backordered 5 weeks because of production, not demand. We simply have no facts either way. Maybe we'll get some tomorrow at the earnings call. But right now you can't say it's news that Apple is sold out for weeks because of <fill in the blank>. That's fake news if you do.
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I bought the Disney Thanksgiving Week Vacation, then the iPhone X. I'll worry about Christmas after we get back.

Since you are in GA go for the trifecta and get a couple of SEC Championship tix on the 50 yard line and not in the upper deck. Heh. You can justify it because you need to test out how the X is with sports photography. Heh.
 
Most people who paid the full amount for their iPhone won't be bothered about the cost of jeans if they really want/need it. Now, maybe a high-end 4K TV purchase could be postponed until next year because of the iPhone X or possibly an expensive vacation over the winter (unless the warm tropical island vacation is just too tempting).
 
Why would people waste their money on clothes when they can get an iPhone?

The way so many people are so locked into staring at their phones, would anyone notice if nobody wasted money on clothes?

It makes me think of the episode of MASH where Hawkeye bet he could parade around camp nude and nobody would notice. He gets away with it for a while too... but nobody had smart phones in 1951.
 
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I hope they've already gotten some high end champange ready for all the Apple executives!
 
'I just bought a $1,000 phone last month, I don't really need another pair of jeans.'
or...
"I need a new pair of jeans to go with this expensive phone. And a shirt, and shoes, and some other stuff. After all, I'm obviously rolling in cash"
 
So judging by the title, if I leave my iPhone X on the streets and come back the next day to pick it up, I’m rich with all the money it absorbs!
 
That's an odd way to say Apple has the "hot" product this season. It's written to sound like Apple is some sort of leech sucking the blood out of innocent competitors. Of course Apple isn't a parasite company -- other companies attach themselves to Apple. If the X is a success it's because it worked hard to make a great and desirable product. It's not "absorbing" holiday spending money, it's attracting it.

I think this is being seen from the retailers’ perspective. Christmas shopping will be the main driver of sales these few months, everyone has a budget, and every cent spent on one item is one cent less that can be spent on something else.

So if someone buys an Apple Watch, that’s a Fitbit ionic they are not buying, for instance. One set of Airpods sold is another pair of wireless earbuds that isn’t bought. Apple refreshed a ton of their products in the second half of the year and that is going to “suck a lot of oxygen out of the competition”, to quite Neil Cybart of Aboveavalon.
 
I think this is being seen from the retailers’ perspective. Christmas shopping will be the main driver of sales these few months, everyone has a budget, and every cent spent on one item is one cent less that can be spent on something else.

So if someone buys an Apple Watch, that’s a Fitbit ionic they are not buying, for instance. One set of Airpods sold is another pair of wireless earbuds that isn’t bought. Apple refreshed a ton of their products in the second half of the year and that is going to “suck a lot of oxygen out of the competition”, to quite Neil Cybart of Aboveavalon.

Right, I understand that. I just think the way it's being characterized is odd to be kind.
 
The estimate for the first weekend of preorders is 9-12 million iPhone X pre-ordered so they are almost half way there
 
Reviews say the face recognition is fine, when it works. Doesn't work all the time. My iPhone 7's tactile home button always unlocks with my thumb print.

Really, Touch ID works every time for you no matter what? I use it on three devices every day, and it’s pretty common for there to be issues with it unlocking, especially if your hand is slightly wet or greasy... things that wouldn’t affect Face ID at all.
 
Hardware is excellent, iOS is slipping. I’m an Apple fanboy and don’t say this lightly. They remove simple features (3D app switcher) and then add them back as an “update”, and they have issues with the calculator and auto-spell... not acceptable.

I’m not moving from Apple, but simplicity is dying, iBooks is horrible on both iOS and Mac OS because it’s an iCloud hog, the cloud interferes with my local media library, the TV app ruins easy-access to locally stored files (the whole point of me keeping a video on my device is for fast access... I don’t want to wait for an app to load online content before it allows me to access local videos)....

And I don’t care about having an emoji for eggplants or dog ****.
 
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The price, letterboxed everything and faceid not working all that well in broad daylight will not-so-regretfully keep me away from this billion dollar club.
 
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It's true that smartphones absorb revenue that used to be spent on other devices, but the connection is usually drawn to cameras, music players, landline phones, scanners, tablets, etc. being displaced. A pair of jeans? Come on, that's a stretch!

In the 90's, you could easily have spent $3,000-$3,500 (unadjusted for inflation) on a mainstream desktop computer. I'd like to know if any analysts back then proclaimed that American households would abstain from clothes shopping. I doubt it.
 
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