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"We have officers and stockholders who have become accustomed to high salaries and dividends. Not cheap to do that..."

FIFY Timbo.
 
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“easier to digest”

Making it sound like they’re doing customers a favor.

I really hope people start to see through the payment plan ploy. Any unaffordable price can be broken down into $1 per something if you break it down far enough. The fact is the main goal of a payment plan is to lock people into buying things they can’t afford. This reality is lost on A LOT of people who only have shiny new iPhones in their eyes—meanwhile they are sliding further into overall debt.

I know Apple is just a company like every other company, but it really bothers me when they encourage irresponsible spending by telling customers that payment plans make prohibitive prices “easier to digest”, then turn around and unabashedly virtue signal about whatever is popular public opinion at the moment.

Can’t afford and not wanting to dig into your savings for $1000 upfront are entirely different.

I could have afforded my iPhone X at full cost, but chose the monthly payment option. Why? To keep as much in savings as possible. I don’t want to drop $1000 upfront then next week need to fix my car and needed that $1000.
 
It’s my opinion if you need to take out a loan to buy a phone you shouldn’t buy it. You’re also stuck with an expensive post-paid plan (at least if it’s single line) if you do carrier financing. It’s much more economical to pay full price up front and get a prepaid plan.
 
You could do all of that 10 years ago already, when iPhones were generally much cheaper. As far as I can see, there's no mention of the innovation that would justify the recent price increase.

Exactly...! Just a bad PR-damage control, trying to justify the crazy price increases. Especially considering that this was an "S" upgrade. The innovation from the X to the Xs does NOT justify the crazy overprice.
 
Umm. Monthly is more beneficial. Yeah the ending cost might be the same, but I would rather spend ~$30 a month than dig into my savings for $1000 upfront. I might need that $1000 for health or some stuff around the house or car issues.

If you'd need that $1000 for a car issue, you can't afford a $1000 iPhone no matter how affordable the payment is per month.
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Can’t afford and not wanting to dig into your savings for $1000 upfront are entirely different.

I could have afforded my iPhone X at full cost, but chose the monthly payment option. Why? To keep as much in savings as possible. I don’t want to drop $1000 upfront then next week need to fix my car and needed that $1000.

If the $1000 you would have paid for the iPhone would have taken away your ability to respond to an emergency, newsflash you can't afford a $1000 iPhone. I don't care if you can finance it for 10 years at 0%.
 
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.

Cook is NOT right. The $30 monthly payment is for an Xr. When you look at a $1450 Max, then you are looking more to $60+ per month. That is why the preorders for Xs were quite low.
 
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The way most people pay for these...they do a deal with a carrier and they pay so much per month, so if you look at even the phone that's priced over $1,000, most people pay $30 a month for it


Did ANYONE else notice this? These are Tim Cook’s own words, what is he smoking?


Yes most people do month to month payments, but his cost estimations are completely off. It was $32 for the 7+($769 base), about $33 for the 8+ ($799 base). iPhone XS is $41 a month , XS Max $45.


I usually respect Tim Cook but that was an unbelievably bad spin he tried to do.
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Cook is NOT right. The $30 monthly payment is for an Xr. When you look at a $1450 Max, then you are looking more to $60+ per month. That is why the preorders for Xs were quite low.

Thank you! He’s completely wrong and basically lied.
 
That's not true though. iPads are far cheaper than iPhones even though it physically requires more glass/aluminium/silicon/battery etc. Yes I know it doesn't have the cellular radio for making calls but it should cost just as much if not more than iPhones if cost of producing them is the only issue.

However, the demand for phones is exponentially higher than tablets. So, when you control the supply and there is a huge demand, you can keep putting up prices every year and enough people will still buy it at that inflated price to make it an economically viable product for the company.

I am not blaming Apple for charging these prices. It's a business after all with the primary objective of making money and creating value for it's shareholders like any other business and that's fine.
 
He's reaching here...every phone I have had for the last 8 years has replaced all of these things as well and didn't cost so much. A more accurate answer is we can charge whatever we want because you already have all of these apps you bought and services you are used to so people will buy it regardless.
 
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

Innovative compared to what? Most android sites say that it isn't worth upgrading to the note 9 from the note 8 as it has few new features, outside of a bigger battery and more RAM.

In other words there are no real innovations in cell phone no matter who makes them, only small evolution to the existing products.
 
That's not true though. iPads are far cheaper than iPhones even though it physically requires more glass/aluminium/silicon/battery etc. Yes I know it doesn't have the cellular radio for making calls but it should cost just as much if not more than iPhones if cost of producing them is the only issue.

However, the demand for phones is exponentially higher than tablets. So, when you control the supply and there is a huge demand, you can keep putting up prices every year and enough people will still buy it at that inflated price to make it an economically viable product for the company.

I am not blaming Apple for charging these prices. It's a business after all with the primary objective of making money and creating value for it's shareholders like any other business and that's fine.

iPads have elastic demand. iPhones, as proven by the X last year, have relatively inelastic demand. This is likely due to carriers being willing to drastically discount, and finance at 0% with limited/damaged credit history, iPhones. I don't see near as many finance discounts on iPads nowadays.
 
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Basic economics: Apple priced the phone at what the market will bear. Would it sell at $2000 or $3000? Possibly, but they won't sell in volume. Timmy is a smart man. He gets as gets as many people as possible to spend the most money possible to maintain the best profit possible.

People don't complain that Lamborghini are priced in the stratosphere. The sell at that price. Some even buy just because it is expensive; bragging rights (pissing contest).

Please DO not compare the iPhone with a Lamborighini. The recent iPhone upgrade is an "S" upgrade and the innovation does NOT justify the crazy increase in price. Tim Crook greed is out of control...
 
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Innovative compared to what? Most android sites say that it isn't worth upgrading to the note 9 from the note 8 as it has few new features, outside of a bigger battery and more RAM.

In other words there are no real innovations in cell phone no matter who makes them, only small evolution to the existing products.
That's exactly what the iPhone Xs is compared to the iPhone X (as I think you have said as well)
 
If you'd need that $1000 for a car issue, you can't afford a $1000 iPhone no matter how affordable the payment is per month.
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If the $1000 you would have paid for the iPhone would have taken away your ability to respond to an emergency, newsflash you can't afford a $1000 iPhone. I don't care if you can finance it for 10 years at 0%.

Well how about US carriers take out all phone upgrade plan tomorrow, switching to prepaid plan nationwide, and require customers to buy their own phone (includes the new XS Max) with their own money, then what? Will it sell as much as today?

By your logic, someone having a $400K mortgage for a family house cannot afford it. So yeah 80% of American family should be homeless because they don’t have any right to own a house they cannot pay upfront.
 
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Vote with your wallet people. I’m using apple’s new entry level iPad and it’s perfect for my needs. The price drop on the iPad was likely a response to the lack of sales. If enough people hold off on this “lambo” phone, they might price their next XR iphone $499.
 
Please DO not compare the iPhone with a Lamborighini. The recent iPhone upgrade is an "S" upgrade and the innovation does NOT justify the crazy increase in price. Tim Crook is out of control...
There was not a price increase on the phones.
 
Everything aside... What's up with Tim? Is he on speed or something?
Dunno, though perhaps -- remember he lives in a timezone three hours behind the place where he did the early morning interview... (GMT-7 vs GMT-4)
 
That’s some pretty selective reading there obiwan.

Was there anywhere Apple has stated “we want to make our flagship for everyone”? You’d think the context clues of the 7 starting at >$500 would explain the everyone comment.

How offering a 2 year old phone for $450 is innovative...??
It is a bunch od BS...
 
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Because people are cheap. Not because it's a better phone. Kinda of like the old comparison of Honda vs Ferrari.
Well I don’t know about that, you can argue the XR has advantages. Best battery life, more accurate colors, better viewing angles, more color options, no obnoxious camera bump, etc.
 
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