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X will probably be the last, current year, premium phone I'll buy. I'll probably start lagging a year behind or buy the cheaper phone that's available (which ever is the better value). It's just getting way too expensive. Apple better be careful or they are going to price themselves out of the market.
 
@3:35 "If you look at the phone thats priced over $1000 (referring to $1099, XS Max) -- most people pay $30/mo or $1/day" he says.

$30/mo x 24 months = $720
$30/mo x 30 months = $900

Where is this math coming from? It hasn't even factored in warranty/loss/theft plans, etc.

And if doing financing through Apple, not the carrier (like Tim is saying 'it turns out people make a deal with their carrier'):
$1099+$199 AC+ built in = $1298

/ 24 = $54/mo

/ 30 = $43.27/mo

um....

I guess Apple and Tim math transcends math math.
10-4.
And you even forgot taxes, if you live in a sales-tax state, which must be paid with the first installment, and it is not prorated and refunded upon an early update.
In my case, that adds 6% to your monthly tally for the first-intalmment:

first installment = $1298*(0.06)[TAX] + ($1298 /24)[PER-MONTH] = $77.88[TAX] + $54.08[PER-MONTH] = $131.96
sub-sequent installments = $54.08

"Greed is good", "Greed purifies" says Cook.
 
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One part of it may be due to the EU two-year warranty requirements? Warranty servicing costs money, so laws in a region requiring a longer warranty will tend to induce companies to charge higher prices to offset those costs.
Wait, are you saying regulation has a cost? I believe that will be labeled as hate speech before long.
 
Agreed. My iPhone 6s Plus was $250 cheaper at launch in 2015 compared to an iPhone Xs Max with the same amount of storage in 2018, and there isn't any reason I can't continue to use it for another year or two.

How much cheaper do you think iPhones were?

The original iPhone was 499 for a 4 GB version and 599 for an 8. It also was tied into only ATT and didn’t have 3G capability that was available for other brands of phones.

The following years saw a price “decrease “ but sometimes only for people buying replacement phones and the listed price was always the one with the least memory.

My first iPhone was the 4s and it was 399 at 32 GB of memory.

My next iPhone was the one I still have, the 6 Plus. I maxed out its memory at 64 GB. I don’t remember what the phone by itself cost but with Apple Care and a case and maybe another charger it was $850. Somewhere I still have the receipt.

That was 4 years ago. I do think costs have gotten ridiculous but with the XR at around 750-800 for a mostly new technology phone I don’t think it’s out of line. And 750 is only 150 more than the higher priced original iPhone which was 1 dollar below 600.
 
Bottom line is this. If you don’t like Apple products for any reason don’t buy them. People are acting as if they have no choice but to buy from Apple. I love their products more than their competition. So, I buy them. If decide I don’t like their products then I will stop buying them.
 
Are we going to be interviewing BMW and Porsche and Rolex to hear their response to: "are you afraid there is a group of people being priced out?"
 
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How much cheaper do you think iPhones were?

The original iPhone was 499 for a 4 GB version and 599 for an 8. It also was tied into only ATT and didn’t have 3G capability that was available for other brands of phones.

The following years saw a price “decrease “ but sometimes only for people buying replacement phones and the listed price was always the one with the least memory.

My first iPhone was the 4s and it was 399 at 32 GB of memory.

My next iPhone was the one I still have, the 6 Plus. I maxed out its memory at 64 GB. I don’t remember what the phone by itself cost but with Apple Care and a case and maybe another charger it was $850. Somewhere I still have the receipt.

That was 4 years ago. I do think costs have gotten ridiculous but with the XR at around 750-800 for a mostly new technology phone I don’t think it’s out of line. And 750 is only 150 more than the higher priced original iPhone which was 1 dollar below 600.

My mom's first cellphone in 1994 had like an 8 minute battery and roamed when you left your driveway and it cost $1500 and the plan was like $200 a month.

Complaining about the prices of technology is laughable. LAUGHABLE. The first Mac was $2500. IN 1984!!!! That's like $6K today.
 
Now, having spend time now test driving Pixel 2 phone (again), I am quite readily admit that for most of the stuff I do, my iPhone X wins - excluding price from the factor. Whether the iPhones are rightly priced or not is another discussion and I don't want to go there.

That said, I find it a bit intellectually offensive that Tim is justifying the price of innovation while at the same time making record profits and having very high profit margins on these phones. No, Tim, it's not that expensive because of the innovations. It's because you want those fat margins. Don't treat people like idiots, please.

Exactly. iPhones basically stayed the same price each year, but each update brought better tech than the one before. People upgraded to have the latest greatest. Then suddenly Apple changed that. Now each iPhone update is more expensive than the previous years model. I guess Tim suddenly thought, Hey! If so many people are willing to upgrade just to have the latest iPhone, might as well see how much more they are willing to pay! So, It’s not about tech improvements. They always improved their tech. It’s totally about raising their prices to increase their margins and testing just how loyal their customers are. I guess it’s Apple’s perogative as a business to do so. But there could be a backlash if they keep trying to test that loyalty.
 
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Are we going to be interviewing BMW and Porsche and Rolex to hear their response to: "are you afraid there is a group of people being priced out?"

When BMW and Porsche CEOs start claiming their aim is to change the world, yes.

25458-34630-25401-34445-revolution_endframe_apple_myriad-l-l.jpg
 
Bottom line is this. If you don’t like Apple products for any reason don’t buy them. People are acting as if they have no choice but to buy from Apple. I love their products more than their competition. So, I buy them. If decide I don’t like their products then I will stop buying them.

So true. Some people would rather publicly embarrass themselves whining about how greedy/unfair/mean/awful/unethical Apple is and never muster up the courage to move forward and purchase a better product, supporting a company they can feel good about.

I'll likely never be able to afford a 5-Series BMW. But that last thing I'd do is hang out on a BMW forum and whine about the company and their profit margins for years at a time.
 
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But if you look at this phone, it's the most advanced iPhone we've ever done.

Yes.

The iPhone 4S was the most advanced iPhone they had ever done and cost the same as the iPhone 4.
The iPhone 5 was the most advanced iPhone they had ever done and cost the same as the iPhone 4S.
The iPhone 5S was the most advanced iPhone they had ever done and cost the same as the iPhone 5.

Etc etc

But they released the iPhone X which cost 40% more than the iPhone 7.

Remember that during iPhone 6,6S,7 times Samsung was already releasing OLED devices with the same prices as Apple. So OLED introduction doesn’t justify a 40% price increase.
 
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I can't see how Apple's aim to 'serve everyone' has been fulfilled. I need a headphone jack, a phone I can fit in my pocket, touch ID, and one that is kinder to my wallet. You are not serving my needs as an Apple customer. You just killed that phone off, and replaced last years premium model at a more expensive price. That's not exactly 'serving everyone' then, is it?

They're also not making any phones for people who want mini-USB, 2G support, physical keys, removable batteries, and external antennae.

old-nokia-cell-phone-mobile-phone-DYCNFM.jpg
 
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The Note 9 was very innovative (though it has its flaws) and the price is maxed out at $1250 — expensive? Totally, but it’s more reasonable
Those 5 years of software updates aren't cheap for Apple, lol.
 
Sounds like Tim is on a PR tour to try and justify their profit margins...
I've ordered a XS Max but damn, the prices are outa control.

Your the problem. Or I should folks like you are. You say you bought one yet in the exact same sentence you complain about the price. Tim has your exactly where he wants you, you complain but don’t change your habits.
 
Maybe you can educate and explain to everyone here why so many products are produced in China. You do know that U.S. is not the only country that have companies that have products manufactured there, right? Go take a look and see how much profit Apple generates.
None of that spoke to what I asked. You claimed it was cheap to produce these things. Apple historically has a margin range they shoot for, so one of two things is happening.

1. Apple is needlessly upping margins

2. The components are more expensive than in previous devices.

Given prices went up with OLED (which Apple is not getting a great deal on) AND the processors are more complex than they’ve ever been I’m thinking #2 is more in line with what is happening, given the price difference between the Xs and the Xr comes down right in line with the cost of the OLED screen + the margin overhead.


Now clearly I’ve thought about this a bit more than “things are made in China, therefore it’s cheap”, do you have anything to add that isn’t just #1 (which for all we know could very well be true)?
 
They have changed the world. Remarkably. What does that have to do with pricing people out with one group of high end phones?
The truth is none of us "need" high end smartphones. An Xr will get ALL of us by just fine. I honestly don't know why people are complaining. Apple still supports the iPhone 7, 8 and even released a phone for people who don't need/want the high end in the Xr. Why is Apple not allowed to release a super expensive smartphone if they want to? They have cheaper model phones. People have deluded themselves into thinking that a business shouldn't be allowed to service high-end clients because they service lower end clients.
 
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Yes.

The iPhone 4S was the most advanced iPhone they had ever done and cost the same as the iPhone 4.
The iPhone 5 was the most advanced iPhone they had ever done and cost the same as the iPhone 4S.
The iPhone 5S was the most advanced iPhone they had ever done and cost the same as the iPhone 5.

Etc etc

But they released the iPhone X which cost 40% more than the iPhone 7.

yup, they set a new baseline price for their flagship and I promise you they’ll never move from it unless it’s up.
 
The prices are high, but he’s right. Monthly payments make it easy for people to swallow. If people had to pay in full or pay a subsidy there would be wayyyyy less sales.

I never ever would do monthly payments for a thing such as an overpriced phone

There are alternatives, even in the iPhone line up

Financing is done when it is necessary, not for luxury items

If you cannot pay for it out of pocket .. do not buy it

This is what I believe
 
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