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

[Sackofnickels]

I think it's pretty funny how freaked out about the price of these things people get.

If you keep your phone for 3 years, totally possible these days with how nuts these things have gotten, think about how it prices out:

$1000 / 3 years = ~$333/year = ~91 cents a day

LTE Advanced phone plan all the bells and whistles, let's call it $60/month, or $2/day

For less than $3/day, you can basically be a cyborg connected to all of the world's people and information.

And people all the heck over the place from what I can see gladly spend $6+ a day at Starbucks on an absolutely crappy covfefe.

I def see a ton of people huffing down $10+ of cigarettes a day.

Think about aaaallllll of the utterly useless crap people spend $3+ a day on.

Now think about it again -- you can basically become a cyborg but instead of nasty surgery and infections you get this cute little tablet thing in multiple colors you can put stickers on, and wham, you are connected to all of the world's people and information.

I must be getting old. I'm 40 now. Been using Apple products for 35 years.

2018. When people complained about how paying half the price of a crappy latte per day to connect to all the world's people and information was too too expensive.

Sheesh.

What about people who don't drink coffee? Can they afford one too?

So at five you were using an Apple II or Apple III? Wow that brings back memories. I avoided Macs back then because they were so specialized. I knew some graphic artists that used them and I played around on them but I did not own one. In the mid to late 1980's I was learning xTree and DOS. My first Mac didn't arrive until around the mid 1990's.

 

[ipponrg]

By the way, it seems worthwhile mentioning that ~$1000 for highly advanced electronics is not a "luxury product."

Hermes sells basic men's leather wallets for over $1500. Very basic leather card holders and change purses that are hundreds of dollars each. You want a nice men's scarf? Could easily be $800.

Those are luxury items. But like super starter ones. The crazy stuff can be $80,000 handbags, quarter-million-dollar watches. It keeps going up from there.

Just because something is marketed aspirationally to look like a luxury good, does not really make it so. Aspirational marketing is fine, this is one of the reasons Apple brought in Angela to run retail (in addition to management skills). But don't confuse aspirational with the real deal.

There's lower end luxury and higher end luxury as you've mentioned. I have a Burberry scarf ($700) and a Jcrew scarf ($100). To many people, they feel Jcrew is pretty pricey for what it is, so it's close to the "low-end luxury" category.

I don't think you can say since something costs $1000, it therefore isn't a luxury item. It has to do with what society is willing to spend. We're already at a breaking point where people are starting to grimace even more.

 

[oldmacs]

7 and 8 are your sm screen options. my wife and i both got 8s with a BOGO offer from Verizon two months ago. I ipgraded from an SE reluctantly but honestly have enjoyed the larger screen and compact design of the 8.

The 7 and 8 are too big! And they are now outdated. Having used a 7 for work, I hated it.

 

[corebeliefs]

I think it's pretty funny how freaked out about the price of these things people get.

If you keep your phone for 3 years, totally possible these days with how nuts these things have gotten, think about how it prices out:

$1000 / 3 years = ~$333/year = ~91 cents a day

LTE Advanced phone plan all the bells and whistles, let's call it $60/month, or $2/day

For less than $3/day, you can basically be a cyborg connected to all of the world's people and information.

And people all the heck over the place from what I can see gladly spend $6+ a day at Starbucks on an absolutely crappy covfefe.

I def see a ton of people huffing down $10+ of cigarettes a day.

Think about aaaallllll of the utterly useless crap people spend $3+ a day on.

Now think about it again -- you can basically become a cyborg but instead of nasty surgery and infections you get this cute little tablet thing in multiple colors you can put stickers on, and wham, you are connected to all of the world's people and information.

I must be getting old. I'm 40 now. Been using Apple products for 35 years.

2018. When people complained about how paying half the price of a crappy latte per day to connect to all the world's people and information was too too expensive.

Sheesh.

For $1/day (using your numbers) you can do 100% of the things as with the iPhone for $3/day. You're not riding in a nicer car with better leather for 3x the price, you're not in first class with more leg room and free drinks. You're holding a commodity phone with features like any other and paying a lot more for it. That is your right to do, but is it so hard to understand why others would be insulted to get this offer from Apple? (As for me, I know what Apple can do with such an offer.)

 

[FreshBoy]

Ok I’m leaving it here in the silly price comparisons. So you are not comparing pre Tax price, but one pre Tax with Tax evasion and one fully paid up.

Ok, we are getting somewhere. So my calculation was wrong because I had the audacity to stay legal.

And no, it is not only illegal if it is still in the box with the receipt. It is illegal full stop. What the changes are of getting caught is another matter.

But for the benefit of general discussion it would be really helpful to stick to legal comparisons, and then especially not call out other forum members to have their calculations wrong because they don’t into account your intended tax evasion.

You seen, this boring stuff can all be avoided by simply comparing prices pre Tax.

But your still wrong and won’t admit it. Pre tax there’s still over €100 in the difference. All I’m trying to say is why are apple ripping off European consumers. The phone should start at €899 pre tax and even then it’s still more expensive here than in America. So even with legal and illegal comparisons you’re wrong. Admit it

 

[MacWorld78]

With the Xs and AppleCare in Australia, it's gone well over that already.

OMG that's just crazy price....

 

[recoil80]

If iphone keeps getting more expensive. Will people stop upgrading every year?

I think this is what Apple expects. They're raising the prices so even if they get to sell less phones the average price is higher so they're doing great.
During the keynote their VP Lisa Jackson stressed about how device can last longer and have a long time support and I think it was a message to their customers: it is worth spending big money on Apple products as they last longer.
And during their last earning calls they showed improved revenues from services, because they know they won't be able to sell as many iPhones each year as they do nowadays.
For me, that's ok. Smartphones are getting to the point where we can't expect much innovation year over year, just like in the tablet and the PC market. Apple is doing an amazing job with their silicon team, but in a few years they won't be able to have a Ax+1 chip much faster and power savvy than the Ax. Camera would be similar and they can't redesign a phone every other year. Smartphones will get boring, people will still replace them more frequently than a PC because it is a product we use for hours every day, you drop it, you scratch it so eventually you want a shiny new one but I guess we'll settle for a 3 years cycle instead of 2 or 1.
[doublepost=1536913823][/doublepost]

OMG that's just crazy price....

In Italy if you get the maxed out Max (btw if funny when you read it ) with AC+ and a case you're only a few € away from 2000.
That $2300, included taxes of course.
And let me tell you, I'm not buying the Max, but if I decided to I'd buy AC with full protection as it cost a lot. Actually my carrier offers something similar in my contract, I can't bring the phone to an AS and have it fixed but I need to send it to the carrier, but at least I don't have to pay for repair if I drop it
[doublepost=1536913937][/doublepost]

But your still wrong and won’t admit it. Pre tax there’s still over €100 in the difference. All I’m trying to say is why are apple ripping off European consumers. The phone should start at €899 pre tax and even then it’s still more expensive here than in America. So even with legal and illegal comparisons you’re wrong. Admit it

They've always increased the price in the EU because they want to protect themselves from currency fluctuation.
I think they protect themselves way too much, but they continue to sell a lot of phones in Europe so what can we do?

 

[Sinfonist]

But honestly... if you're an every-year-iPhone-upgrader... is price really a top concern?

Judging from these comments, yes. A lot of people here seem to be annual upgraders who like the latest technology, but don't want to pay this price. The same people are also influencers for family and friends.

The reaction of the general press here to the latest releases has been unusually quiet, with price the main headline. The public comments I've read have also been mostly negative and price-focused, with little technical discussion. Calling it something that sounds like "Excess" is not good marketing.

 

[j_wong59]

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

It’s enough if you use iCloud. It actually works out cheaper that way

 

[Bacillus]

Tim made me thinking.
If those phones are for everyone, that should certainly include me.
But the XS Max + AW4 with AppleCare sets me back say 3 grand (a few dongles will help...)
Now after selling both my cars, the 2nd mortgage on my house, and having sold one of my own kidney’s, I am out of budget again, like after earlier Keynote’s.
So:

Kidney price inquiry

Tim made me thinking: our 10yr old neighbor boy is a healthy, young non-alcoholic.
His kidney, what would that do on the grey market ?
(take it easy - of course he may rent it back - besides receiving my old iPhone 5S as a commemorative reward. Nobody will get hurt, physically at least*)
The boy is young, positive and an Apple fan. To him, Tim is just as much a role model as to me.
He’ll almost certainly cooperate. His parents are Phil Schiller fans (similar posture) - they are OK.

* I hold a responsible man like Cook liable for any psycho-economic captivity, if there is.

 

[Feyl]

xs plus 512 is crossing 2K - unbelievable

It already crossed 2K in my country.

 

[MoreRumors?]

Samsung is competing with Apple so it charges similar prices. Not really rocket science. Still not a luxury item in my opinion.
[doublepost=1536898179][/doublepost]

Understood. Still not what I consider a luxury item, just a phone priced at what the market will bear.
[doublepost=1536898622][/doublepost]

So all these millions of people from all over the world, from kids and old people, to the rich and poor all enjoying the status of owning an iPhone and that is considered a luxury item? I read there have been 700 million sold. I would think the term Luxury is being tossed around pretty loosely, considering just about everyone has one. Running water used to be considered a luxury too.

I agree with you. It seems any product or brand that is charged a high price is considered a "luxury". I can't see what makes this or any other high-priced phone a luxury nor does it offer anything that could be considered luxury. Now if Apple adorned the case with quality diamonds or 24k gold edges, then that could be considered luxury. There comes a time when one have to look at what you get for what you are paying for and not just because of the name/brand. If anyone still see Apple as a luxury item, then the Apple marketers have done an effective job in convincing the public. After watching the Live Coverage, I must say they were pretty good at detailing the new products and had me wanting to upgrade...until they announced the prices .
[doublepost=1536922531][/doublepost]

By the way, it seems worthwhile mentioning that ~$1000 for highly advanced electronics is not a "luxury product."

Hermes sells basic men's leather wallets for over $1500. Very basic leather card holders and change purses that are hundreds of dollars each. You want a nice men's scarf? Could easily be $800.

Those are luxury items. But like super starter ones. The crazy stuff can be $80,000 handbags, quarter-million-dollar watches. It keeps going up from there.

Just because something is marketed aspirationally to look like a luxury good, does not really make it so. Aspirational marketing is fine, this is one of the reasons Apple brought in Angela to run retail (in addition to management skills). But don't confuse aspirational with the real deal.

At this point in time, I have a hard time considering any luxury item that is "Made in China" or any other country because of cheap labor and lower cost of manufacturing.

 

[izyreal]

The technology for 120Hz on OLED has yet to exist. You can’t do it.

LG has had OLED TVs that have 120 Hz since last year. I realize that the PPI of an iPhone is MUCH higher than a 55+ inch TV, but the tech does exist.

 

[balaplus]

Media appears unusually quiet and muted after the event. No outrage or even criticism of prices..

 

[JonKelley]

I was upgrading every two years to get a good blend of performance to value, but this changes the equation for me. I'm going to keep my 7 for another year, and see what 2019 brings. I pay cash in full for my phones, because it keeps me connected to the real price (i.e. $100 more than the 7 at the time of purchase). Also, I'm not a fan of the screen size obesity epidemic, and with 5G on the horizon, it makes sense for me to stay on the sidelines on this one.

 

[ipponrg]

Media appears unusually quiet and muted after the event. No outrage or even criticism of prices..

It’s been 2 days since the event. You missed the storm. Media has moved on

 

[Abazigal]

Media appears unusually quiet and muted after the event. No outrage or even criticism of prices..

I take it you haven't visited TheVerge in a while?

 

[clauzzz203]

I don't think you do, Tim. Or maybe just the leadership of Apple.

 

[ipponrg]

There comes a time when one have to look at what you get for what you are paying for and not just because of the name/brand.

This was always the case for people when they were shopping between PC and Mac.

The Mac back then charged more expensive prices than PC for lesser components and lower performance at the time. You were always paying more for the brand.

It persisted with iPod, cameras, Routers, minis, mice, ... phones

That mantra for Apple products has not changed for the last 2 decades, so I don’t think you were cross shopping enough to decide between Apple and others. But hey if it’s normal to you and it only took the recent event to realize their prices, then I guess it’s better late than never

 

[balaplus]

I take it you haven't visited TheVerge in a while?

Sorry...what i meant was no one in the wider media beyond Tech sites have commented much. Guess nobody wants eat a humble pie after predictions of Iphone X doom and gloom

 

[Abazigal]

Sorry...what i meant was no one in the wider media beyond Tech sites have commented much. Guess nobody wants eat a humble pie after predictions of Iphone X doom and gloom

Well, jokes aside, I feel that what Apple is doing isn't entirely unreasonable from a business perspective.

https://stratechery.com/2018/apples-middle-age/

The TL;DR is that the high end smartphone market is pretty much saturated at this point, so for Apple to continue increasing their profits year after year after year, there are only so many things they can do. More accessories, higher hardware prices, more services.

And Apple seems to be doing all three.

 

[MoreRumors?]

That mantra for Apple products has not changed for the last 2 decades, so I don’t think you were cross shopping enough to decide between Apple and others. But hey if it’s normal to you and it only took the recent event to realize their prices, then I guess it’s better late than never

Well, you don't know me personally and already presumed I don't know how to shop around. I've used Android devices for many years before I switch to Apple which happen to be a hand-me-down iPhone 6 which I still use now. The only thing I use on my i6 is talk, text and internet so improvements in hardware are the only things I look for in new phones. Today, smartphones are being pushed beyond that to a smartphone/video/game/music/camera all-in-1 which causes prices to rise. So whether I choose Apple or Android, prices for both will continue rise because it has more/improved features and features I have no desire to use and have to pay for but neither company won't make a device that is geared for me because it won't make money for them. I don't want to pay more for features I won't use so for now I will continue to use my i6 until Apple no longer provide iOS update for it, it stops working for whatever reason or wait next year when the current line drops in price when new models come out.

 

[I7guy]

Tim made me thinking.
If those phones are for everyone, that should certainly include me.
But the XS Max + AW4 with AppleCare sets me back say 3 grand (a few dongles will help...)
Now after selling both my cars, the 2nd mortgage on my house, and having sold one of my own kidney’s, I am out of budget again, like after earlier Keynote’s.
So:

Kidney price inquiry

Tim made me thinking: our 10yr old neighbor boy is a healthy, young non-alcoholic.
His kidney, what would that do on the grey market ?
(take it easy - of course he may rent it back - besides receiving my old iPhone 5S as a commemorative reward. Nobody will get hurt, physically at least*)
The boy is young, positive and an Apple fan. To him, Tim is just as much a role model as to me.
He’ll almost certainly cooperate. His parents are Phil Schiller fans (similar posture) - they are OK.

* I hold a responsible man like Cook liable for any psycho-economic captivity, if there is.

You are twisting Tim Cook’s words. Wanting to serve everyone is not the same as everyone should be able to buy every phone at every price point.

Therefore I hate to say it, or not, your post contains some hyperbole.

 

[Mainsail]

For those concerned about the high prices, I suggest that you buy an older model phone that is new or refurbished.

The truth is that the iphone 7 is plenty capable and will run the same software as the Xs, so wait for the holiday sales, and pickup an iphone 7 for $350. It will probably last you 3 years. For storage, get an iCloud account with 50 GB for 99cents per month.....that’s per month.

I am not knocking someone that wants a $1,500 iPhone......absolutely an individual choice. I will say that a huge part of the user experience is driven by the software, so if you are using an older model with the same OS and Apps, your experience is going to be very similar to someone using a newer model iPhone.

 

[corebeliefs]

For those concerned about the high prices, I suggest that you buy an older model phone that is new or refurbished.

The truth is that the iphone 7 is plenty capable and will run the same software as the Xs, so wait for the holiday sales, and pickup an iphone 7 for $350. It will probably last you 3 years. For storage, get an iCloud account with 50 GB for 99cents per month.....that’s per month.

I am not knocking someone that wants a $1,500 iPhone......absolutely an individual choice. I will say that a huge part of the user experience is driven by the software, so if you are using an older model with the same OS and Apps, your experience is going to be very similar to someone using a newer model iPhone.

Good point and I have no problem buying older hardware to save money. Apple has a bit of a problem with older hardware, though, as we've all experienced with slow downs after major iOS releases. Then, your phone can get locked out of new apps once it's no longer able to be upgraded to the latest OS. So there are drawbacks to buying an older iPhone model, unfortunately.