Tim Cook on iPhone Prices: 'We Want to Serve Everyone'

[MacRumors]

At an event in Cupertino yesterday, Apple announced three new iPhone models: the iPhone XS, iPhone XS Max, and iPhone XR. Prices for the iPhones start at $749 for the iPhone XR in 64GB, and increase to as much as $1,449 for the iPhone XS Max in 512GB, which represents Apple's most expensive iPhone to date.

Commenting on this price range in an interview with Nikkei today, Apple CEO Tim Cook said, "We want to serve everyone." Apple introduced the iPhone XR at a cheaper price point so that customers who wanted the advantages of the iPhone X line -- Face ID, an edge-to-edge screen -- could find them on a lower-cost iPhone.

"We want to serve everyone," Cook said in an interview with Nikkei. "We understand that there is a wide range of what customers are looking for and a wide range of prices that people will pay."

Likewise, the iPhone XS Max represents Apple's biggest iPhone yet, and serves the customers who enjoyed the features of the 2017 iPhone X, but wished it came in a larger size.

"We always thought ... that if you provide a lot of innovation and a lot of value, there is a segment of people who are willing to pay for it," Cook said. "For us, it's a large enough group of people that we can make a reasonable business out of it."

Apple will also still sell the previous generation iPhone 7 and iPhone 8, at new lower prices. The iPhone 7 will now start at $449 in 32GB and increase to as much as $669 for the iPhone 7 Plus in 128GB. The iPhone 8 will start at $599 in 64GB and rise to $849 for the iPhone 8 Plus in 256GB.

Discussing the iPhone in general, Cook says that, "The role of the iPhone has become much larger in people's lives," and that will justify the price of the devices for many customers.

Those interested will be able to pre-order their iPhone XS or iPhone XS Max beginning tomorrow, September 14, and the smartphones will then launch on September 21 in over 30 countries and territories. The iPhone XR will go up for pre-order in about a month, on Friday, October 19, and then launch on October 26.

In addition to the iPhone, Apple yesterday also announced the Apple Watch Series 4 with a 30 percent larger display, thinner body, ECG reader, fall detection, and more. Similar to iPhone XS, Apple Watch Series 4 pre-orders will go up on September 14 and the smartwatch will launch on September 21.

Article Link: Tim Cook on iPhone Prices: 'We Want to Serve Everyone'

 

[Reach9]

...by serving no one.

 

[bigboyz12000]

Well, if you want the new new then you gotta pay pay. That is what Tim told me.

 

[1050792]

Especially serving the "rich" elite, am I right Mr Cook?

 

[motm95]

I have not bought a launch day iPhone since the 4S and instead bought last gen devices since then, and this time I was all set to buy the 512GB XS Max but at $1449, I'm starting to have second thoughts...

Maybe getting a used iPhone X 256GB will be in my future.

 

[oldmacs]

What by removing the low price option?

By removing the small screen option?

 

[magbarn]

What by removing the low price option?

By removing the small screen option?

Yup, where’s the SE’s replacement Timmy Mcscrooge?

 

[infinitejest]

I like his sense of humor.

 

[spooky23]

Think Tim has maxed out with this one.

 

[oldmacs]

Yup, where’s the SE’s replacement Timmy Mcscrooge?

Even just a slight spec bump to A11 and one of the newer (say iPhone 7 or 8) cameras would have done.

 

[AngerDanger]

From a business perspective, the iPhone Xr seems amazing. It's $250 less than the Xs but seems to lack more than $250 worth of components (especially once you account for margins on each component). It doesn't have an OLED screen, ForceTouch, a secondary camera, the thinnest bezels, or stainless steel body, but it's still ostensibly a thing of beauty.

 

[Moonjumper]

Price isn't the only differentiator. Different sizes also. A replacement for the SE please.

 

[dantastic]

In this day and age 64GB should not be an option. This pricing model is nothing but self serving.

 

[M.PaulCezanne]

By offering 2 year old technology at affordable prices.

 

[Kwstas]

Edge to edge display* (*minus curved corners, notch) is the proper definition. Marketing ****. (Don't buy).

 

[penajmz]

“But If you don’t have enough you’ll be stuck with crappy stuff“

 

[MizuNoHane]

"...we can make a reasonable business out of it"

I know he's usually known for his understated mannerisms but this is one for the ages

 

[Oblivious.Robot]

After taxes, most of the Apple products have gotten to a price that just isn't worth it. That, and the strong dollar is just cherry on top with Apple's currency conversion.

I think it has effectively pushed me into keeping my products well into 3-4 years or more range.
Thankfully, just a mid cycle battery replacement and they actually do last that long so it's win-win.

 

[edgonzalez32]

From a business perspective, the iPhone Xr seems amazing. It's $250 less than the Xs but seems to lack more than $250 worth of components (especially once you account for margins on each component).

It's really only missing an OLED screen, the dual cameras (let's be honest, a lot can be achieved with a single lens. Look at what Google has been able to do with the pixel 2) and 3d touch (which is just a fancy long press). They easily could've just done an OLED phone with a single camera.

 

[ediks]

Serve everyone in the US maybe , the "budget" Xr costs $1000 USD in Europe and dont get me started with the Xs Max

 

[dilbert99]

We want to serve everyone

What a lie. We want to make money. If you wanted to serve everyone, you would keep the X at a cheaper price and not several year old technology.
How about letting me use my Apple watch with any phone I want.
How about letting me by default what ever browser, maps or voice assistant that I want.
How about putting the same camera sensor in all the new phones rather than trying to up sell?

 

[satchow]

I've bought a new iPhone at launch every year since the 3GS. It started out as $200*, then $400*, then $600, then $650, then $750, then last year $1000. This year the phone I would get is $1150. They say a frog won't jump out of a pot if you heat it slowly, Tim Cook has priced me out of the pot.

*due to how contracts used to work in the US

 

[benh911f]

We Want To Serve Everyone (Of Our Investors)

 

[match14]

What by removing the low price option?

To be fair the two year old iPhone 7 is low priced at 449.

By removing the small screen option?

Yes the SE was a well liked device

 

[brentsg]

In this day and age 64GB should not be an option. This pricing model is nothing but self serving.

64GB is more than adequate for many. My wife has never eclipsed the 32GB mark on iPad or iPhone.