Predict $50 price decrease on iPhone 7

[iosuser]

I very highly doubt Apple will lower the price on their bread and butter product. Bumping the base to 32GB is likely, and I think Apple will increase the prices on the capacity upgrades - $150 for 128GB, and $300 for 256GB, following the iPad Pro model.

Ever since the 3GS I've been perfectly fine with 32GB, and then Apple generously bumped it to 64GB for the same $100 starting with the 6. Now that I've been conditioned to having 64GB - as having ~30GB in use 32GB will no longer cut it - I'd now have to pay $150 for the 128GB. So I look at it as a $50 price increase.

Apple knows exactly what they're doing

 

[JustMadeThisNameUp]

the increase in storage will give them an excuse

The increase in price with the increase in storage for their iPads has not been recieved well. They can't afford to raise the price again.

 

[lordofthereef]

A dual lens camera for the 7 Plus could be expensive. I also think the 7 camera will get a big upgrade as well. I think this year is the year of the camera! Maybe the force touch one button as well.

We won't have long to find out anyway, Apple will probably be sending out the invites to their event any day now.

It could get expensive, but I also don't think Apple would price themselves out of competition, particularly st s time when we are seeing a decline in sales.

I've seen people point out that Spple isn't competitive with their mac line in terms of price. To an extent I agree (though we've seen price drops and huge tech improvement particularly in the air lineup), but it's also worth noting that it's not the mac that brought Apple to the top. That award goes to iPod and then iPhone.

I'd also point out that the SEcis, at least in my eyes, evidence that an attempt st a current gen device at a lower price point is definitely on Apple's radar. They probably could have replaced the 6 and 6 plus with the SE at a similar price point, but chose against it.

I'm not a market analyst. I only say what I'm able to see. I just don't see a better camera justifying the price hike. For most, I would say the camera is used less than 1% of the time. Maybe I'm wrong. I won't be upgrading anyway if all I get is a better camera. For what I use it for my phone takes lovely pictures as is.

 

[bufffilm]

The increase in price with the increase in storage for their iPads has not been recieved well. They can't afford to raise the price again.

iPads are not iPhones.

At best, no price increase on the base. But a price bump on the 128gb and 256gb models may happen. This is Apple...they rarely throw extras in for free. And getting 128gb on their mid-tier now (from 64gb) is an extra.

And all this rationalization from the OP about mid and high priced Android phones and other sundry topics have zero relevance to the iPhone and what Apple will charge for it. Zero.

 

[TallManNY]

In reality, I expect cheaper Android flagship phones to compete against other more expensive Android smartphones (like the S7 and Note7) than the iPhone. The iPhone is still the only smartphone to run iOS, and this coupled with the stickiness of the Apple ecosystem makes it harder for users to switch.

Lowering the price of the iPhone may also damage Apple's brand name, and a company's branding is something that is near impossible to regain once lost.

My advice to Apple would be to simply wait out the competition and let them implode on their own. Their razor thin margins means these companies likely won't have much left over at the end of the day to invest in improving their products. Meanwhile, Apple has the resources to continue improving their ecosystem in ways that go beyond just boosting specs and / or lowering price.

Focus on making great products, and customers will continue to flock to them even if you charge a (reasonable) premium for them.

Well this strategy has served Apple well in the past. And I certainly like the wait them out part because I can't see how current android makers do R&D with their current margins. But as long as Google is willing to do all the hard programming for the Android manufacturers for free, maybe these guys can make a go of it.

As for Apple's competition, I know they have iOS and the stickyness. Maybe that is enough. Heck it probably is. But for how long? If you can buy a decent Android smartphone from Amazon for $60 now (and a good one for $399 from a number of manufacturers), how about next year when that phone is still $60 but it has a better camera? Or next year when the budget premiums are $299? Can Apple continue to innovate ahead of "good enough" phones and keep the same price?
[doublepost=1471885613][/doublepost]

iPads are not iPhones.

At best, no price increase on the base. But a price bump on the 128gb and 256gb models may happen. This is Apple...they rarely throw extras in for free. And getting 128gb on their mid-tier now (from 64gb) is an extra.

And all this rationalization from the OP about mid and high priced Android phones and other sundry topics have zero relevance to the iPhone and what Apple will charge for it. Zero.

Apple competes with Android phones for the smartphone market. People buy things based on many factors, including price. So of course the price of competing products has an impact on what Apple charges. Of course, Apple may be eating Android's lunch so badly (switchers seem largely to go from Android to Apple and rarely back), that Apple may feel they can have a significantly premium price. But it isn't like price of competitors is ignored.

I'm also skeptical of larger price for storage upgrades. Since 32gb is going to be too small for almost as many people as the 16gb was last year. Many will need to buy the mid-tier. But expecting the same huge numbers of people to shell out $799 for the 4.7 with good storage space and $899 for the Plus version in 2017 seems like a reach. I keep using it as an example, but you can buy a $60 Android from Amazon and a $25 storage card and be good to go. Or a $399 near-premium Android, the same $25 smart card, and be specc'ed out about the same as that $899 Plus for half the cost.

 

[96-HUDSON-96]

iPads are not iPhones.

At best, no price increase on the base. But a price bump on the 128gb and 256gb models may happen. This is Apple...they rarely throw extras in for free. And getting 128gb on their mid-tier now (from 64gb) is an extra.

And all this rationalization from the OP about mid and high priced Android phones and other sundry topics have zero relevance to the iPhone and what Apple will charge for it. Zero.

true

 

[Mlrollin91]

Apple competes with Android phones for the smartphone market. People buy things based on many factors, including price. So of course the price of competing products has an impact on what Apple charges. Of course, Apple may be eating Android's lunch so badly (switchers seem largely to go from Android to Apple and rarely back), that Apple may feel they can have a significantly premium price. But it isn't like price of competitors is ignored.

I'm telling you, Apple couldn't care less about market share. Same goes for Mac. All they care about is their stockholders and their bottom line. Higher priced phones equals more profit, even if less units are shipped. Especially with market saturation now, they really don't care about market share. They just want to make as much as possible, as quick as possible. Apple has a very strong fanbase that will buy their phones no matter what the cost is. Especially with the Apple Upgrade Program with monthly financing, raising the price seems like a no brainer for Apple.

You keep mention the price and year we are entering. What does the year have to do with anything? As years go on, items get more expensive. Thats just how it works, prices don't come down, they increase even if completely unnecessary. You haven't seen the price of a car model go down year after year. Even if there are no changes, cars go up $500+ a year. Apple has not raised the price in about 5 years, Samsung has raised their prices multiple times since then.

 

[Applejuiced]

You keep mention the price and year we are entering. What does the year have to do with anything? As years go on, items get more expensive. Thats just how it works, prices don't come down, they increase even if completely unnecessary. You haven't seen the price of a car model go down year after year. Even if there are no changes, cars go up $500+ a year. Apple has not raised the price in about 5 years, Samsung has raised their prices multiple times since then.

That's false.
Prices of electronics get cheaper, faster and better as time goes on.
You don't really think the price of smartphone components since the iPhone 2G with 4GB and 8GB came out are more expensive do you?
Same goes for flat screen tv's, computers, laptops etc...
I'm glad to see you enjoy paying more but that's not how it works.
If it was like that and prices increased as years go by then the 50" flatscreen tv that I got last week for $350 would cost me $10,000 and the laptop I got for $220 would have cost me $2000.
Nope.
They are faster, better and cheaper.

 

[TallManNY]

I'm telling you, Apple couldn't care less about market share. Same goes for Mac. All they care about is their stockholders and their bottom line. Higher priced phones equals more profit, even if less units are shipped. Especially with market saturation now, they really don't care about market share. They just want to make as much as possible, as quick as possible. Apple has a very strong fanbase that will buy their phones no matter what the cost is. Especially with the Apple Upgrade Program with monthly financing, raising the price seems like a no brainer for Apple.

You keep mention the price and year we are entering. What does the year have to do with anything? As years go on, items get more expensive. Thats just how it works, prices don't come down, they increase even if completely unnecessary. You haven't seen the price of a car model go down year after year. Even if there are no changes, cars go up $500+ a year. Apple has not raised the price in about 5 years, Samsung has raised their prices multiple times since then.

Prices in the computer and tech space go up and down. And generally speaking adjusted for inflation they go down. It happened with PCs and it will likely happen at some point with smartphones, even as the smartphone gets more powerful. Your example with cars is why many folks in Silicon Valley think the car industry is ripe for disruption. Consumer electronics tend to decrease in price over time.

And while Apple does have a strong "fanbase" I do not think it is fans who are buying a significant amount of the 220+ million yearly iPhones that Apple sells. Now I'm very much one of those fans. I will buy an Apple product partly on faith and fandom. And I know there are millions, maybe even 10 million folks like me. But there aren't 100 million and there aren't 300 million or more necessary if you assume that even "fans" don't necessarily buy a new phone yearly.

I think most folks just buy the phone to do a job. The iPhone does that job the best (well it is many jobs, which is why doing those jobs the best overall is so incredibly valuable). And many folks have been burned by bad Android phones or are so embedded in the Apple ecosystem that even if they wouldn't consider themselves fans they will continue to buy Apple stuff. But I don't think that there are 220+ million folks who will just turn over their cash in the next year with little thought to competitor products and their cost. Not to mention the current iPhone users who have to look at the price of buying a new one compared to going another year with the phone in their pocket. And Apple has consistently produced a new and amazing phone each year, so I don't see them resting on laurels and just relying on "fandom" to produce 220+ million sales.

By the way, while I'm debating you here, I also very much see your point. I could be wrong. I just see the combination of limited change to the form factor, combined with the SE $399 price, and most recently the rumor that the 4.7" inch will not get the dual camera set up, the drastic drop in some Android smartphone prices, as all pointing to the base price of iPhone 7 getting a haircut.

 

[Mlrollin91]

That's false.
Prices of electronics get cheaper, faster and better as time goes on.
You don't really think the price of smartphone components since the iPhone 2G with 4GB and 8GB came out are more expensive do you?
Same goes for flat screen tv's, computers, laptops etc...
I'm glad to see you enjoy paying more but that's not how it works.
If it was like that and prices increased as years go by then the 50" flatscreen tv that I got last week for $350 would cost me $10,000 and the laptop I got for $220 would have cost me $2000.
Nope.
They are faster, better and cheaper.

The reason why those components are so much cheaper now is because its 'old' technology. New technology is always going to be more expensive when it comes out. And Apple has a tendency to put newer technology into their devices first. They were one of the first to fully utilize DDR3 RAM in their Mac lineups, which is one of the reasons why Mac prices were higher than PC at the time. Apple doesn't necessarily put cheap components in their iPhones. 128GB flash chips are still decently expensive, and to think about putting in a 256GB chip, it costs money. Additionally, what people seem to be forgetting is you are also paying for the Apple brand. That alone in Apple's eyes is worth the additional cost, and they know they won't lose customers because of that.

 

[Applejuiced]

The reason why those components are so much cheaper now is because its 'old' technology. New technology is always going to be more expensive when it comes out. And Apple has a tendency to put newer technology into their devices first. They were one of the first to fully utilize DDR3 RAM in their Mac lineups, which is one of the reasons why Mac prices were higher than PC at the time. Apple doesn't necessarily put cheap components in their iPhones. 128GB flash chips are still decently expensive, and to think about putting in a 256GB chip, it costs money. Additionally, what people seem to be forgetting is you are also paying for the Apple brand. That alone in Apple's eyes is worth the additional cost, and they know they won't lose customers because of that.

Old technology bs.
The tv I bought has way newer tech with built in wifi and tons more features, lasts way longer, has better picture than my huge and heavy 50" screen on wheels that I had back 14 years ago and paid an arm and a leg.
A new pc laptop with the same or better hardware is twice as cheap as a MacBook.
The Apple tax is correct but that will only get them so far. Not many will just upgrade for the sake of upgrading.

 

[USF813]

I don't think we'll see a price increase. There are a lot of people out there on the last of the two year contracts. I'm one of them who won't move to the new installment pricing, and I think a lot of current contract holders will move to prepaid and keep their current device once their contract ends. The 6 was the first (and last) iPhone that I buy at launch. I'll wait until the 8 is out and buy a 7.

 

[TallManNY]

I don't think we'll see a price increase. There are a lot of people out there on the last of the two year contracts. I'm one of them who won't move to the new installment pricing, and I think a lot of current contract holders will move to prepaid and keep their current device once their contract ends. The 6 was the first (and last) iPhone that I buy at launch. I'll wait until the 8 is out and buy a 7.

Well if you want to save money, then buy used. Can be very prudent. But I've always thought the $100 savings to buy last year's phone from Apple was the worst deal Apple offered. Well, except for the current Mini. That is so outdated.

That 6 should work well until you drop it. No OS update is going to slow that CPU down. It is great to get a phone off contract. Get on a family plan with shared data and the cost of each phone really drops down when you are no longer paying for the hardware.

 

[kazmac]

Man, if only. I'd love if they cut the price of the plus $100.

 

[USF813]

Well if you want to save money, then buy used. Can be very prudent. But I've always thought the $100 savings to buy last year's phone from Apple was the worst deal Apple offered. Well, except for the current Mini. That is so outdated.

That 6 should work well until you drop it. No OS update is going to slow that CPU down. It is great to get a phone off contract. Get on a family plan with shared data and the cost of each phone really drops down when you are no longer paying for the hardware.

I'm currently on a family plan with three family members who still own flip phones and don't text, so a shared plan in our case would be a waste of money. I'm going to go prepaid so I can switch between carriers at will.

 

[sracer]

I don't think we will see a price increase even with a bump in storage. Apple needs to stay somewhat competitive with its competition.

The lower priced SE gives Apple a little room for a slight price increase on their flagship devices.

 

[mtcowdog]

iPhone 7 price decrease relative to current iPhones? No way. iPhone 6 or 6s lower price? Possible. I think pricing beyond the 7 will depend on the portfolio of phones they continue to sell. I can't quite figure out where the SE fits year over year. Is it a a one shot deal or more?

 

[TallManNY]

I'm currently on a family plan with three family members who still own flip phones and don't text, so a shared plan in our case would be a waste of money. I'm going to go prepaid so I can switch between carriers at will.

Nice. Is prepaid that much cheaper than just going month to month? Or is that the same thing as prepaid? I've looked at T-Mobile and MetroPCS and they aren't quite as cheap as I would like. I find it useful to have two phones on two different networks because I'm more likely to have a good signal when traveling or even just while being in buildings or basements in a city.

Though maybe it is time to get the family members off the flip phones. I mean you are a person who is logging in and commenting on Macrumors. I suspect you could trouble shoot your family members through the transition from Flip Phone to Smartphone. They might like texting, you never know.

Or maybe best to not get them hooked. They probably won't want to go back.
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iPhone 7 price decrease relative to current iPhones? No way. iPhone 6 or 6s lower price? Possible. I think pricing beyond the 7 will depend on the portfolio of phones they continue to sell. I can't quite figure out where the SE fits year over year. Is it a a one shot deal or more?

Well with the A9 CPU in the SE, which is the same as 6S and is powerful enough to beat pretty much the top Android phones in processing power under most tests even a year later, there is no reason to not sell that phone all the way through 2017, or at least until the 2017 A11 CPU is released in Fall 2017. So it will get at least an 18 month run.

The question is if Apple will release an upgraded 4" phone in 2017. I think they wont abandon that screen size entirely. So we will at least get a new one in 2018. While I'd like to see the SE drop in price in 2017 and a new 4" phone get released with better specs, I really doubt that will happen. I think the special part of this special edition is that they will keep selling it for a while. I could see them selling the SE in 2018 without any changes. The form factor and design is just so good and the performance both in power and battery life is also so good, that it really does what a lot of people need and does it in style.

 

[USF813]

Nice. Is prepaid that much cheaper than just going month to month? Or is that the same thing as prepaid.

Pre-paid is straight forward, no device fees, no insane taxes, no drama.

I'm going with AT&T initially. $55/month for unlimited data, the first 6gb at LTE plus rollover, unlimited talk and text.

I actually wanted to go with TMobile but I've been reading stories about iPhone 6 issues on their LTE network.

 

[617aircav]

Reality is not many people would buy the 256gb phone so Apple might not even make it at this point.

 

[Dave245]

Reality is not many people would buy the 256gb phone so Apple might not even make it at this point.

Its going to depend, I think if the dual camera on the 7 Plus takes photos that are a storage hog. Also Live Photos takes up more than standard, and 4K video eats up storage. I think Apple will add 256GB just like they did with the iPad Pro.

 

[Applejuiced]

Reality is not many people would buy the 256gb phone so Apple might not even make it at this point.

I doubt it they will go with such high storage for a phone. But if they do then 2-3% of customers will purchase it.
Most will buy the lowest storage size available as usual.

 

[JustMadeThisNameUp]

iPads are not iPhones.

Correct.

 

[TallManNY]

Pre-paid is straight forward, no device fees, no insane taxes, no drama.

I'm going with AT&T initially. $55/month for unlimited data, the first 6gb at LTE plus rollover, unlimited talk and text.

I actually wanted to go with TMobile but I've been reading stories about iPhone 6 issues on their LTE network.

I recently got a phone on $30 a month with 1gb LTE. Seeing how it goes. It is my backup phone. I'm on wifi at home, work and at local coffee shop. I also check my apps for data leaks and run ad blocker on my iPhone. So I don't use a ton of data on that phone or my iPhone.

I guess I always thought prepaid meant buying some sort of prepaid card. But it just means they charge your card for the month coming up. No big deal. I've been off contract on all my phones for over two years now. But I've never thought of it as prepaid. And maybe it isn't prepaid exactly since I think I still see all those taxes on my main account bill (which has four phones and two iPads, so a bit of a mess).

 

[Applejuiced]

Some prepaid carriers charge regulatory taxes separately in your bill.
Others include it all in the price. But they are there one way or another for everyone.