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

[jonnyb098]

The LATEST entry NEW iPhones before this announcement started at $699 and $799 for the iPhone 8 and iPhone 8 plus from last year. The X was $999. They DID NOT start at $599/699...you just aren't being truthful with facts here at all.

So now, you have the iPhone Xr coming in between at $749.That's $50 up on the 8 pricing and $50 DOWN on the plus sizing giving you the inbetween price of $749 for the latest entry phone

Apple didn't put any markup on their newest phones here, you're actually getting the inbetween of the sizes now and no more normal/plus iteration on the entry level latest phone.

#facts.

Clearly you didn’t read my first sentence. I said BEFORE LAST YEAR. So yes I’m playing with the same facts you are and tried to tell me I’m not....using the exact same thing I already stated. All your following statement are void and I’m not arguing with that. I’m talking about PRE-2017.

#READ
#hookedonphonicsworkedforme

 

[Lounge vibes 05]

Honestly, the price of a phone means very little anymore. Most networks offer deals anyway, and most people just pay for the phone monthly. They don't even own it, they just rent it. So rather they are paying 20-30$ for the XR or 40-50$ for the XS, it doesn't change much.

 

[curtvaughan]

Steve Jobs on risking long term for short term gains.

Wow, was he prescient!! All you need to do is substitute "iPhone" whenever he says "Mac", and "Tim Cook" for "John Scully" and here we are again. Jobs has taken on a prophetic role with the company he founded, even years after being gone.

 

[Lilydgg]

While I completely agree, I'm afraid other manufacturers (Samsung mainly, but possibly also Google for this round of Pixels) are likely to follow along with Apple's ever-escalating prices.

At this point, I think I'm priced out of the pot, too. I'll keep my current phone until it dies or until the midrange "affordable" (i.e., what the flagships used to cost) models are better than what I currently have.

You win, Tim Cook and Ki Nam Kim. I think I'm out of the flagship game at this point.

This is where I'm at, each "update" the price jumps up and becomes the new baseline and the value for the money just isn't there anymore.

 

[apolloa]

What an arrogant money grabbing ******!!

The ONLY thing Cook serves are his pay cheque and share holders and share value, as that also directly turns into his pay cheque..

If Apple actually cared about customers it would include a fast charger and headphone adapter in the box of a £1100 Plus device. But no...

Apples pricing structure is now wwaaayyyy beyond their ability to defend with a straight face anymore...

 

[bchery21]

If people are willing to buy at these prices, then hey, but it's hard to back Apple at these prices...

 

[PowerGala]

I think a lot of people feel the same way - another option is to just upgrade less regularly, it doesn’t even have to be a whole year later, paying 1149 every 18 months is still cheaper over 3 years than paying 999 every 12... that’s my plan anyway (I’m not ocd about getting an iPhone on launch every time though, so may not work for some who are)

Yeah... No one really needs to upgrade every year. I typically upgrade my phone every other year. I could have gone three with my 6s, maybe longer. I don't need to upgrade my X for an XS. At this point, phones have become so good that it's become much more of a want than a need than ever before.

I think the phone upgrade cycle is going to become much closer to the laptop upgrade cycle. I think my dad's iPhone is 4 or 5 years old and it still works fine for him.

 

[fuchsdh]

Unfortunately I have been a avid yearly purchaser. But im priced out. With Apple Care for the X your looking at about $1400. If you are not an impulse buyer, how can you reasonably justify that?

The issue is, they hope your going to lease your phone. A subscription world we live in. Count me out.

I am sure they will make boatloads of money, but IMO, this is everything Apple use to stand against. Confusing lineup, selling old technology, with crazy naming schemes.

And meanwhile I'm wondering how you justified buying a new phone yearly.

(And why would you buy AppleCare if you're going to get a new phone in a year? Are you really that worried something is going to go wrong?)

Yeah... No one really needs to upgrade every year. I typically upgrade my phone every other year. I could have gone three with my 6s, maybe longer. I don't need to upgrade my X for an XS. At this point, phones have become so good that it's become much more of a want than a need than ever before.

I think the phone upgrade cycle is going to become much closer to the laptop upgrade cycle. I think my dad's iPhone is 4 or 5 years old and it still works fine for him.

Yeah that's where I don't get the bellyaching. Assuming I keep my new phone for four years, an XR costs just $16 a month, an XS $21 a month. Assuming I keep it longer (which seems like a safe bet considering how my 6 is performing now) you're hitting $13/$17 a month for five years, $10/$14 for six. It makes no economical sense to me to be buying a new phone every year or two years at this point compared to the real world performance during day-to-day use.

The lack of a smaller-sized phone is a bummer, but I don't think Apple is trying to convince people who bought the X to buy an XS Max. They'll take your money if you're foolish enough to part with it, but they are more interested in convincing switchers or people who are on old phones that this is the gen to upgrade.

 

[walnuts]

Tim has a book called "How to Serve the Customer" on his desk and the big reveal is that it is a profit ledger!

In all seriousness, I'm indifferent. As a a long time apple customer, I'm saddened that I used to be able to afford "the best," and now it seems like I will always have to settle for the budget phone. I do appreciate that the trade offs between the XR and the XS aren't that bad. As someone who prefers small phones, I am concerned that I may get addicted for this brief period where the smallest phone isn't the cheapest.

 

[balaplus]

If Apple want to keep that valuation, they'll have to pull off the same trick next year... so the question is, how often can you raise prices before people stop buying your products?

As long as they maintain high resale prices, they will continue to raise the prices of new products (the longevity of the iphones is undeniable). I cannot see an end in sight

 

[ronno]

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.

The X running iOS 12 is great, FYI.

 

[arkitect]

The X running iOS 12 is great, FYI.

I should hope so!
I mean after all, that was last year's "flagship".
No reason for it not to be running iOS12 well.

I think even Apple haven't quite sunk that low yet…

 

[b_scott]

I swore everyone here thought prices were supposed to drop for the new X phone models. Guess not.

 

[daneoni]

Should have said he wants to serve shareholders. Under his watch my affection for the company has dwindled significantly. He only cares about the bottom line (costs down, price up) and is in no way a product person like Steve was. Yesterday's keynote was almost unbearable to watch.

Steve charged a premium but still wanted his products accessible to as many as possible and even offered price drops at certain points. He also strived for diverse but streamlined product line to cater to multiple segments.

But with TC, the Mac has become a joke, software development is pretty much cringeworthy, the product line is too convoluted, disjointed and in some cases laughably outdated. Its all about iPhone now, which is very dangerous game to play...especially when the smartphone bubble reaches its peak.

He is trying to make Apple a luxury goods company that sells to the highest bidder, which it really isn't. Started making deals with fashion brands and wanted to charge 10 grand for a watch that would be obsolete in 8 months.

The Mac has gone from plug & play/seamless integration to pay then plug via dongles. Today an iPhone can't talk to your shiny new MBP unless you buy a separate cable that doesn't come in either box.


...but for the shareholders and wallstreet...he's basically the best thing since sliced bread.

 

[44267547]

Its Amazing how many people are so upset over Tim Cook and Apples pricing strategies. The Reality is, you don’t have to purchase their products if you don’t want to or if they’re unaffordable for some. Apple is a company that’s out to make money, and they continue to put out successful products every year, even if it does include price increases, but I think what they’re offering this year with the XR, is priced really well to sell. I For one, I was pleased with what they announced yesterday for products with the Apple Watch and iPhones.

 

[Falhófnir]

Yeah... No one really needs to upgrade every year. I typically upgrade my phone every other year. I could have gone three with my 6s, maybe longer. I don't need to upgrade my X for an XS. At this point, phones have become so good that it's become much more of a want than a need than ever before.

I think the phone upgrade cycle is going to become much closer to the laptop upgrade cycle. I think my dad's iPhone is 4 or 5 years old and it still works fine for him.

Yep - I think even Apple are realising this with supporting the 5s on iOS 12, and considering how well it still works, longer upgrade cycles would seem to be the direction of travel

 

[iapplelove]

You realize now, though. You never payed $199.99 for your phone, right? The $400 or $450 you “saved” was an instant loan which they never told you about. The 2 year contract / commitment and ETF was either to either 1) Repay the loan or 2) repay the loan through the ETF.

You’re right, btw. The repayment did not appear on your phone bill because that would have spoiled the illusion. T-mobile ended the charade when they killed contracts and dropped their monthly fee around $30.

Maybe you prefer the illusionary price the magic trick offered. But, make no mistake you never paid $200 for a phone. And if you ever did not recommit and upgrade your phone at 2 years you overpaid your loan.

Ohh come on now you know very well people much preferred to buy phones the old way under contract.

Even me, someone who usually pays in full.

 

[PowerGala]

As long as they maintain high resale prices, they will continue to raise the prices of new products (the longevity of the iphones is undeniable). I cannot see an end in sight

Resale/Trade is a really good point. If I had last year's Samsung Galaxy S8+ and wanted this year's Samsung Galaxy S9+, I'd get $210 in trade (at Best Buy) for the S8+ and the S9+ is $689.99 on sale. So I'd pay $479 before taxes.

Apple will give me $525 in trade for my iPhone X and the XS is $999. So I'd pay $474 before taxes.

 

[31 Flavas]

I'm still ok with that concept, since the phone still ran about $600.

We still have 2-year contracts, mind you. But their purpose is clear: it’s a contract on the phone not the service, the payment amount, amount due each month, and number of payments left out in the open, and no more over paying the loan.

 

[gate5blues]

I miss the events where Apple shows you the premium product and then slashes the price... those were Steve's days.

I guess its important to note how much of the newness of this phone is the silicon. It's truly impressive and I understand that apple is pushing forward in that tech space. I think we'll be seeing more products with apple X series chips.

However, I still feel that they missed the price point. For the Xr the Xs and the Max. I have an iPhone 6S (screen wrecked) and I'm still having trouble justifying 749 for a new phone. I guess considering how long I've had my phone i could go out an buy a 7 but then it would be outdated in a couple of years.

Considering Apple charges 100 premium for every storage upgrade I would have been okay with a 32GB $649 version. (I know how to use the cloud and I could then justify the $2.99 a month subscription for 200GB of cloud storage)

I just don't want to feel like i'm being robbed.. Apple, you're a trillion dollar company now. Maybe in the pursuit of new silicon and advancing tech you could give the margins on your next-gen technology a slight break?

 

[31 Flavas]

Ohh come on now you know very well people much preferred to buy phones the old way under contract.

Even me, someone who usually pays in full.

Is it the visual of the price tag? The illision of getting a $200 phone?

 

[8281]

This mentality is baffling. The vast majority of users aren't even using 64GB. It's 2018, internal storage is all but irrelevant.

How is it baffling? Storage is insanely cheap and the premium for storage is just an obvious money grab.

 

[BrooksA]

I used to love Apple products but to be honest it's kind of a relief not to be so hung up on them. I wouldn't be that bothered if my laptop packed up tomorrow and I'm definitely intruiged by Android running on a Google phone.

You have to admire the sheer amount of profit this company makes - THIRTY EIGHT PERCENT!! - but I'm well paid and I'm being priced out of their products. £449 for the 'cheap' two year old model.. hmm no thanks. Phone's not worth what they are asking until it means you no longer need to buy a computer. Come on Tim, give us a break.

 

[arkitect]

I miss the events where Apple shows you the premium product and then slashes the price... those were Steve's days.

Ah the good old days.

The slides with a price that slid down with a thud and a little cloud… as the latest lower price was revealed.

Thanks for the memories.

 

[curtvaughan]

Tim didn't make Apple a luxury brand. That was Steve Jobs in 1984, selling the original 128k Mac for $2500.

All hi-tech was relatively expensive in the 70s and 80s. It was much more expensive to produce, as the customer base was fairly small and rarefied. The professional market was in mainframe and mini-computers costing from 20 to 30 thousand for low end minis like PDP-11s, to millions for high end mainframes from CDC, Cray, and IBM. The home computer market was new and small, really only interesting to computer buffs (which were then a very small minority of people). Home computers were expensive, as parts were produced in relatively small numbers for a small customer base. The $2500 Mac in 1984 might be compared to the IBM PC/AT produced that year for $4000, and those were 1984 dollars. Any PC/Mac in the late 70s/early 80s was a luxury item, as only a very few people purchased them. Most people who did use computers back then used them with time share access to mainframes from dumb terminals in their offices. 35 years, especially in computers and technology, is an eon, and comparisons of prices are silly in terms of perceived product value.