I use my phone for business. I travel with it all over the world. I rely on it, a lot.
There is a limit to what I am willing to accept. I buy luxury cars, for example, but if I were looking for an Audi and Audi arbitrarily raised the price of their A6 by 30% only because they can, I would probably buy another car as well. The point is that Apple is pushing this too far and as a consumer I will push back.
Plus, the reasons to upgrade each year are fewer and fewer each year... It's starting to feel like a waste.
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You must be expertly familiar with the cost of components. You sound like a blind sheep just jumping at his master's latest offerings. Samsung has been cranking out AMOLED displays for years and their headsets sell at competitive prices. If Apple catching up to Samsung in terms of the display technology they use makes you jump for the wallet, be my guest. It's a free country
But, I happen to know a few things about consumer behavior and price elasticity is very much present in consumer electronics, as with any other commodity. I am sure Apple has this figured out, no doubt. They will likely have another model to fill the gap, but if the price of the flagship rises to $1000, sales figures will certainly be lower and Apple may be prepared to compensate by having higher margins. There is market equilibrium and it can be calculated with pretty good accuracy given enough data. They have probably studied the market extensively to understand how to price the new device. Shareholders will be pleased, for sure.
Anyway... Some consumers, myself included, will buy something else. Simple economics.