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

[ipponrg]

I get why people think these phones are too expensive. But this is the reality. It's 3 dollars a day. For the value it provides in your life, it worth that. And as this poster points out, many of us waste much more than that daily. Also a point that does not get considered is that you are buying into the Apple ecosystem in that cost. That has value as well. Sure they should give you more than 5GB of iCloud for free. But come on 50GB is 99 cents a month. that's 3.3 cents a day.


I know a number of people who are wait staff in various restaurants. They make around 25K to 35K a year. All of them have an iPhone. It's affordable, if you want it to be. If your an Apple fan, I think you would be happy that unlike in the past we don't have to worry anymore about Apple going bankrupt.

Even though I can easily afford $1095 (@ $3 per day), I don't like to look at it as $3 per day. I find that's where a lot of people can land into trouble financially because they are rationalizing their spend on money they don't really have.

You're really paying for all the extra bells and whistles which of course adds value to a person's life depending how they use it, but I don't consider them a definitive "worth" it

 

[groove-agent]

A 7 isn't obsolete.

Obsolete was the wrong choice of word. Maybe "antiquated" would be closer to what I was trying to say.

 

[Sackofnickels]

Even though I can easily afford $1095 (@ $3 per day), I don't like to look at it as $3 per day. I find that's where a lot of people can land into trouble financially because they are rationalizing their spend on money they don't really have.

You're really paying for all the extra bells and whistles which of course adds value to a person's life depending how they use it, but I don't consider them a definitive "worth" it

Exactly. A better way to look at it would be to say if you saved three dollars a day and put it away, didnt think about it, imagine how much money you would have saved after a couple of years.

 

[dan110]

Timmy just made me strongly contemplate going Android. Now to just research the best stock android, largest oled screen, with best battery life. The eXceSs Max is bs with its sub 3000 mah battery. That's just pathetic. I bought a $180 android for screwing around with that has a 4000 mah battery. Apple is stagnant.

I started this path a year ago. Look at the new Nokia phones. They are very capable and for 1/2 the price of a comparable iPhone. The best part? No bloatware.

They ship with pure Android. I bought the Nokia 6.1 but still have an iPhone 6+ during the transition away from the Apple ecosystem.
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You do realize for as long as you've had your 6S (presumably since 2015) if you used iCloud storage per their current pricing you would have paid $108 in cloud storage fees (3x12x3) and thus paid more than $750 for your phone? So why are you balking at a $100 price premium with double the storage?

I don't think your maths are adding up.

You're trying to save money on the SSD but then admitting that you'd pay a premium for additional cloud storage over several years (based on your current habit of using your phone for more than a year.)

The best thing to do is to max out on the hardware memory because you can't tell where you'll be or what you'll be doing in the future when you'll need the space.

 

[groove-agent]

IMO, the ultimate evolution of the phone is when you can sit them into the charging dock, and connect them to a regular monitor and use a BT keyboard and mouse like a laptop. I'm pretty sure there is an android phone that can do this, and the Microsoft Phone could do this also.

The current iPhones are definitely powerful enough, but Apple would never concede to an all in one solution. They would rather everyone buy an iPhone, iPad, and MacBook Pro to fulfill their daily computing needs. If they did build an all-in-one phone/Mac, I could definitely justify paying over $1000 for it.

 

[Abazigal]

IMO, the ultimate evolution of the phone is when you can sit them into the charging dock, and connect them to a regular monitor and use a BT keyboard and mouse like a laptop. I'm pretty sure there is an android phone that can do this, and the Microsoft Phone could do this also.

The current iPhones are definitely powerful enough, but Apple would never concede to an all in one solution. They would rather everyone buy an iPhone, iPad, and MacBook Pro to fulfill their daily computing needs. If they did, I could definitely justify paying over $1000 for a phone.

Apple will never do this because it’s completely antithetical to their mission - which is to make technology more personal, and hooking your phone to an external dock (after taking pains to remove the headphone jack and introducing Airpods and wireless charging) is as impersonal as it gets.

Instead, what i think makes more sense is AR glasses. Think about it. It solves the issue of your iPhone screen being too small (your display is now your entire field of view), and doesn’t tether you to a desk. And Apple is in a prime position to make AR glasses work, between owning the best customers, its control over hardware and software, and expertise with technologies such as the W1 chip.

 

[Michael Scrip]

IMO, the ultimate evolution of the phone is when you can sit them into the charging dock, and connect them to a regular monitor and use a BT keyboard and mouse like a laptop. I'm pretty sure there is an android phone that can do this, and the Microsoft Phone could do this also.

This is the dream: a device you have with you all the time... and you just plug into a big screen on your desk.

And Samsung already does this with Galaxy S8/S9, Note8/Note9, and Tab S4

Not much is said about it, though. It's been over a year... and it barely gets a mention in reviews.

Again... it's a cool idea... but it kinda falls apart in practice.

Yes... you can plug your phone into a monitor/keyboard/mouse at work... but then you'd need another monitor/keyboard/mouse at home?

And what if you travel? Will you have to make sure there is a monitor/keyboard/mouse in your hotel room? And you'd still be chained to a desk in the hotel. No mobility.

So... maybe there would be a laptop-like "shell" to hook your phone into. Basically a laptop with a screen, trackpad and keyboard... minus the guts.

But at that point... why not just use a regular laptop? Forget all this docking nonsense.

I understand the idea is to combine devices. But, as of right now, they seem to be better off separated.

Of course phones keep getting faster and faster. But the amount of support hardware you'd need scattered around the globe will start to get excessive.

 

[groove-agent]

Apple will never do this because it’s completely antithetical to their mission - which is to make technology more personal, and hooking your phone to an external dock (after taking pains to remove the headphone jack and introducing Airpods and wireless charging) is as impersonal as it gets.

Removing wires doesn't make it more personal, it makes it more convenient. That's fine though, I'd be happy with wireless charging, wireless mouse, wireless keyboard and some sort of airplay to a larger screen as long as iOS was tweaked to take advantage of the larger screen.

Anyone wanting to become personal with their phones might want to see this movie first:

 

[floling]

ridiciously it's a apple thing to discount products which have a high satisfaction rate. ipad mini 2 was at an even 100%..and now? gone... the SE sold pretty well .. I know lots of guys (and girls) owning one... why discount things when they are so satisfying?

 

[deepan84]

It already crossed 2K in my country.

In my country the average wage for a freshie is 2.8k/mth. The Max 512GB cost 7k here. A motorcycle cost 6k. Mcd cost 12/Set.

So just imagine the extreme pricing here. It’s easily twice or triple the monthly wages.

 

[I7guy]

Apple will never do this because it’s completely antithetical to their mission - which is to make technology more personal, and hooking your phone to an external dock (after taking pains to remove the headphone jack and introducing Airpods and wireless charging) is as impersonal as it gets.

Instead, what i think makes more sense is AR glasses. Think about it. It solves the issue of your iPhone screen being too small (your display is now your entire field of view), and doesn’t tether you to a desk. And Apple is in a prime position to make AR glasses work, between owning the best customers, its control over hardware and software, and expertise with technologies such as the W1 chip.

What Samsung does with Dex, is provide a desktop experience that is not. It may look like a desktop, but run some CAD program on it, like you need to do at your day job. It's subpar, from even a Steve Jobs perspective. (There I did it, I reached beyond the grave like so many others before me)

 

[eltoslightfoot]

What Samsung does with Dex, is provide a desktop experience that is not. It may look like a desktop, but run some CAD program on it, like you need to do at your day job. It's subpar, from even a Steve Jobs perspective. (There I did it, I reached beyond the grave like so many others before me)

Exactly. That Dex experience is not exactly great, in real life. Ugg.

 

[ocnitsa]

I'm not sure what Apples thoughts are with an SE sized model. I'm thinking an SE2 may be announced along with new ipads.

Maybe you can clarify your comments on what you meant that apple will "phase out neer IOS versions for older models". It's no secret that apple provides 5 years of ios updates for a given hardware generation? Does android provide 5 years? Are you saying 5 years of ios updates is cheap on apples part?

I’m saying they are selling iPhone 7s this year as “new,” as part of their “line up.” Are you saying they will continue to support it for 5 years?

 

[I7guy]

I’m saying they are selling iPhone 7s this year as “new,” as part of their “line up.” Are you saying they will continue to support it for 5 years?

Apple is clearly not saying the iphone 7 is new. The iphone 7 will be supported through 2021 as it was introduced in 2016. That is through ios 14.

The discontinued iphone x gets 5 years of support, the full 2 years of applecare, etc.

 

[ocnitsa]

View attachment 782365

Apple is clearly not saying the iphone 7 is new. The iphone 7 will be supported through 2021 as it was introduced in 2016. That is through ios 14.

The discontinued iphone x gets 5 years of support, the full 2 years of applecare, etc.

I know. The article focused on Tim Cook saying Apple wants to serve a range of customers via diff price points. In the good old days, when you bought at that price point, you were getting the current year's model (with the smallest amount of storage) with 5(ish) years of support for updates, not a model that is already 2 years old technology with only 3 years of iOS upgrade support. The point I was making in my original response, which prompted our reply thread, is that I think this is lame and unbecoming of Apple (based on their old reputation). Can they do it? Yes. Will they continue to make money hand over foot? Yes. Do I think it's lame? Yes. You are free to think Apple is the bee's knees for doing it, though.

 

[I7guy]

I know. The article focused on Tim Cook saying Apple wants to serve a range of customers via diff price points. In the good old days, when you bought at that price point, you were getting the current year's model (with the smallest amount of storage) with 5(ish) years of support for updates, not a model that is already 2 years old technology with only 3 years of iOS upgrade support. The point I was making in my original response, which prompted our reply thread, is that I think this is lame and unbecoming of Apple (based on their old reputation). Can they do it? Yes. Will they continue to make money hand over foot? Yes. Do I think it's lame? Yes. You are free to think Apple is the bee's knees for doing it, though.

Got your point.

Although this strategy might work best for a wider range of customers. It’s like buying last years car model at a discount. And having a dealer simultaneously sell this years and last years model.

It’s unlikely Apple is going to change their strategy. In support of that people do say on these forums the amount of uptick is quite small between models and hence the reason NOT to upgrade.

 

[Peperino]

Selling 2 year old phones as a cheaper option is lame. Apple should be doing better than that. A few years ago, the entry price point would have gotten someone a new (for that year), entry level iPhone, rather than a 2 year old entry level iPhone. I understand that there is a huge market in older iPhones (especially when new ones come out) and that Apple has monetized that phenomenon with their "line up." But, it's totally lame because they use those options to provide price points that rationalize the ramping up of prices on the other end of the line up. We are like frogs in water that is getting hotter and hotter, until eventually we're Cooked (see what I did there?). It's obvious that Apple will do well, regardless, however. People will continue to buy their phones in record numbers. I'm not one of the SE fanatics, but as a lower-priced model with newer innards, it equates more with the kind of offering Apple should be making at the lower end, rather than two year old phones. This issue is especially relevant, given Apple's propensity to phase out newer iOS versions for older models of iPhones (4-5 years, depending on the model)...

Peple are NOT buying the iPhones anymore at this outrageous prices. Actually, in the last 2 years sales has been declining, but they make more money because they are more expensive. And this is in a strong economy. As soon as there is a slow down, Apple will suffer.

What is really sad and scary is where Cook is taking Apple. Not only they did not offer a new affordable iPhone (SE) but they offer you an iPhone 7 (a 2 year old )phone as an option. What is wrong with COOK???

Sadly. Apple turned into a luxury phone brand. And even worst is happening to its entire computer line up that is outdated and overpriced. Apple used to be a synonym of innovation, quality and design. All their computers are old, outdated and the quality has been poor to say the least. 2 of my Macbooks logic board failed after a year and a half.

 

[cmaier]

Why does this thread name remind me of this?

https://en.m.wikipedia.org/wiki/To_Serve_Man_(The_Twilight_Zone)

 

[I7guy]

Why does this thread name remind me of this?

https://en.m.wikipedia.org/wiki/To_Serve_Man_(The_Twilight_Zone)

One of the top episodes along with Room 22.
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Peple are NOT buying the iPhones anymore at this outrageous prices. Actually, in the last 2 years sales has been declining...

This link does not support your assertion...

https://www.statista.com/statistics/263401/global-apple-iphone-sales-since-3rd-quarter-2007/

 

[Brandhouse]

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.

I haven't upgraded past the 6S, I was thinking about it as I need a bigger phone so I can see it better, button, I'm going to hang on to it as long as I can to wait and see if reality of prices might changes things at Apple.

 

[Peperino]

One of the top episodes along with Room 22.
[doublepost=1537136015][/doublepost]
This link does not support your assertion...

https://www.statista.com/statistics/263401/global-apple-iphone-sales-since-3rd-quarter-2007/

Maybe you should learn to read charts.
Last 3 years of Q3 sales declined compared to 2015
Same with Q2 of 2015.
And last 3 years sales stalled.

 

[fuchsdh]

I started this path a year ago. Look at the new Nokia phones. They are very capable and for 1/2 the price of a comparable iPhone. The best part? No bloatware.

They ship with pure Android. I bought the Nokia 6.1 but still have an iPhone 6+ during the transition away from the Apple ecosystem.
[doublepost=1537039689][/doublepost]

I don't think your maths are adding up.

You're trying to save money on the SSD but then admitting that you'd pay a premium for additional cloud storage over several years (based on your current habit of using your phone for more than a year.)

The best thing to do is to max out on the hardware memory because you can't tell where you'll be or what you'll be doing in the future when you'll need the space.

My math is sound. (And I'm not the one suggesting getting iCloud storage, that was who I was replying to.)

 

[I7guy]

Maybe you should learn to read charts.
Last 3 years of Q3 sales declined compared to 2015
Same with Q2 of 2015.
And last 3 years sales stalled.

Maybe you should examine the charts a little closer. A decline of 1M units out of 74M is less than 10%, enough of a estimate to based on little facts, but the ASP was enough to send Apple to 1T. Selling the same amount of phones over 3 years when the price has gone up is, well magical.

 

[lionkin]

Why buy xr when carriers are offering iPhone X? I rather invested on iPhone X.

 

[Abazigal]

I’m saying they are selling iPhone 7s this year as “new,” as part of their “line up.” Are you saying they will continue to support it for 5 years?

I think Apple acknowledges the reality that consumers are simply holding on to their devices longer, and iOS 12 is testament to this.

I believe the iPhone 7 will be supported for another 3-4 years at least. Just look at the iPad released this year. 2gb ram and A10 processor, similar to the iphone 7. Fairly outdated specs, but because it's technically a new device, Apple is obligated to support it with software updates for a decent period of time.