Why the iPhone X may not be "overpriced" at $999

[dumastudetto]

The iPhone is not overpriced.

If anything, it is underpriced.

It's increasingly clear that it will take months for people to get their hands on one. Demands is well and truly exceeding supply.

They should have doubled the price. It is an ultra premium product that should have been priced at ultra premium levels to curb demand.

There are plenty of other iPhone models for those who do not like paying high prices for phones.

I completely agree. They know that demand is going to exceed supply by a factor of at least 50. They should be charging a lot more to get the supply / demand ratio much closer to something sensible.

But Apple wants to give as many customers as possible the chance to own this incredible new iPhone X, so they are trying to do the decent thing by keeping prices lower.

I personally think Apple should charge a lot more for the first 3-6 months, and then reduce the price once demand cools down.

 

[lotsalag]

I personally think Apple should charge a lot more for the first 3-6 months, and then reduce the price once demand cools down.

That's a great idea.

When demand is so completely out of line with supply, prices need to be raised to restore the equilibrium.

Once supply picks up, prices can be lowered to maintain that equilibrium.

 

[AndrewR23]

You two above are in your own apple bubble.

 

[lotsalag]

You two above are in your own apple bubble.

It's simply capitalism in operation. Those who are willing and able to pay, get first access. Like it should be for all non-essential goods and services in life.

 

[The-Real-Deal82]

The iPhone is not overpriced.

If anything, it is underpriced.

It's increasingly clear that it will take months for people to get their hands on one. Demands is well and truly exceeding supply.

They should have doubled the price. It is an ultra premium product that should have been priced at ultra premium levels to curb demand.

There are plenty of other iPhone models for those who do not like paying high prices for phones.

How do you know demand is exceeding supply when pre orders are yet to go live and nobody knows what the demand is yet? If you're about to say 'well you can still order the iPhone 8 with no supply problems', I'd be inclined to say the iPhone 7 is still available and at a better price.

I really hate this elitist snobby attitude from a small element of Apple obsessives on here since this launch. A sudden demand for the iPhone to be turned into a status symbol so they can give the impression they are wealthy and superior to anybody else.

We're all iPhone users here and I can't believe we have people asking for prices to increase and divide the user base? I'm finally seeing the age old stereotype I've often seen levelled at me, lived up to. No amount of exaggerating how good this phone is will affect the reality of this situation.

 

[lotsalag]

I really hate this elitist snobby attitude from a small element of Apple obsessives on here since this launch. A sudden demand for the iPhone to be turned into a status symbol so they can give the impression they are wealthy and superior to anybody else.

How can you possibly complain?

Every aspect of consumer society is sorted into goods for richer and poorer people: food, cars, houses, clothes, computers, etc etc etc.

Why shouldn't the iPhone be the same?

 

[Nozuka]

the elitism is big with some people...

 

[areyes163]

the elitism is big with some people...

That's like the kids at my daughter's high school who think if you don't have a iPhone your poor. Or my parents who think they have the best phone because it's a iPhone and it costs the most. Lol. Some just judge a product on price. If it costs the most it has to be the best. Just has to be right. Or my personal favorite is people who say they always just buy the most expensive iPhone and that is their sole reason. Lol.

In the end something is worth what someone is willing to pay. Always is and always will be. You like the iPhone great. You don't, great. No point in arguing over it or posting threads complaining about others complaining but you yourself are complaining and this getting even more people to complain lol. Let's just move on.

 

[The-Real-Deal82]

How can you possibly complain?

Every aspect of consumer society is sorted into goods for richer and poorer people: food, cars, houses, clothes, computers, etc etc etc.

Why shouldn't the iPhone be the same?

The iPhone has never been marketed like that previously. Even Apple don't suggest it's premium and aimed at richer people.

 

[Nozuka]

To get a sense of how much Apple is taking us to the cleaners, we have to look at the BOM costs.

BOM Cost:
iPhone 6S - $211.50
iPhone 7 - $220.80
Galaxy S8 - $307.50
iPhone X - $412.75

Profit Margin:
iPhone 6S - 67.46%
iPhone 7 - 66%
Galaxy S8 - 59%
iPhone X - 58.7%

So as you can see, the iPhone X is priced accordingly against Samsung's pricing model. You could say the iPhone 6/7 were overpriced. I wasn't able to get the Note 8's BOM cost. If anyone has it, please post it.

I'm not saying the iPhone X isn't expensive, because it is. This gives us a picture of why it's so expensive.

what about iphone 8/8+?

 

[MrX8503]

So what iPhone X cost more to build?

iPhone X costs $412 to build, sells for $999, Apple earns $586 profit.
Galaxy S8 costs $307 to build, sells for $750, Samsung earns $443 profit.

How can you say the profit margin is the same? If the profit margin is the same, iPhone X should be $412 (cost) + $443 (profit margin same as S8) = $855 selling price, not $999.

And please don't bring that iOS argument in here. We all already know if you want iOS, you only have iPhone as the choice. This is not the argement here.

So yes, iPhone X is still overpriced.

If I take $1000 from a random person, is that a lot of money to that person? How do you know without knowing the percentage?

There's a reason why Apple reports gross profit margins in %.

what about iphone 8/8+?

I don't have numbers for iPhone 8

 

[edfoo]

If I take $1000 from a random person, is that a lot of money to that person? How do you know without knowing the percentage?.

How is that question related at all to your original post? Doesn't make sense.

 

[bambooshots]

How is that question related at all to your original post? Doesn't make sense.

He was responding to the poster who thinks Apple should get the same profit as Samsung.

The poster he's responding to obviously has no idea about percentages and profit margins.

 

[edfoo]

He was responding to the poster who thinks Apple should get the same profit as Samsung.

The poster he's responding to obviously has no idea about percentages and profit margins.

Strange yet he is quoting me.

 

[Menel]

ip8/+ - should really be called the 7s/+

Taking out the mid-tier model was greedy on Apple's part. Bad move.

The iPhone X - bad choices or oversights (depending on which camp you are in) coupled with insufficient time to get all the engineering difficulties solved led ultimately to a keynote reveal of a flawed product.

At this point, who really cares if pricing on the ipX is justified or not?

I disagree. 8 is quite new. All new dual glass structure and fatter, new wireless tech with wireless charging, bionic cpu, its quite a leap.

Its the 7 which was the 6SS.

 

[bufffilm]

I disagree. 8 is quite new. All new dual glass structure and fatter, new wireless tech with wireless charging, bionic cpu, its quite a leap.

Its the 7 which was the 6SS.

Yes..maybe on the 6SS...but we both know Apple would never have called it that.

But I would still disagree on the ip8/+ name.

Yes, the CPU bump was generous, but the camera upgrades were within expected norms. And with wireless charging being the only new feature...I don't see how Apple can justify giving it the ip8 name even if the LCD screens were tweaked a little with truetone, etc.

 

[Nozuka]

justify? it's just a marketing thing, they can just throw around any name they want

 

[CTHarrryH]

I love it that people complain about a 1000 iPhone but you hear no discussion or complaints about a 350 set of earphones. I think a phone that does what the X is supposed to do is worth a lot more than 3 times a set of headphones

 

[_Refurbished_]

The iPhone is not overpriced.

If anything, it is underpriced.

It's increasingly clear that it will take months for people to get their hands on one. Demands is well and truly exceeding supply.

They should have doubled the price. It is an ultra premium product that should have been priced at ultra premium levels to curb demand.

There are plenty of other iPhone models for those who do not like paying high prices for phones.

Sorry, I’m back. I was busy laughing.

The iPhone X is clearly overpriced, and so are the other flagships this year. “Some” people are willing to pay $1000 for “no bezels”. Most people don’t care. After waiting a few years for a redesign, I’m not satisfied with the X and its needless increase in price.

No thanks. Sticking with the “tired” design.

 

[iBug2]

Part of the cost besides the materials, is the craftsmanship behind it. I know the stainless steel Apple Watch I believe has more of a manufacturing process to achieve that high shine with the 316 L stainless. So I think that's partly factored into it.

SS Watches use sapphire covers instead of glass. That's where the extra cost comes from.

 

[johnothy]

They all are overpriced.

 

[Analog Kid]

They all are overpriced.

You own a 6 Plus, so obviously that one wasn't over priced... why are these?

 

[Essaux]

64gb for a 1000 phone? Apple is taking the friggin piss.

 

[Deguello]

Sorry, I’m back. I was busy laughing.

The iPhone X is clearly overpriced, and so are the other flagships this year. “Some” people are willing to pay $1000 for “no bezels”. Most people don’t care. After waiting a few years for a redesign, I’m not satisfied with the X and its needless increase in price.

No thanks. Sticking with the “tired” design.

If it's "clearly overpriced" then they'll be sitting on the shelves unsold. What do you think the odds of that are?

"More than I'm will to pay" is not the same as "overpriced."

 

[Apple_Robert]

That's a great idea.

When demand is so completely out of line with supply, prices need to be raised to restore the equilibrium.

Once supply picks up, prices can be lowered to maintain that equilibrium.

Demand, or lack there of for the iPhone X, will not change how fast the OLED screens can be produced. Apple's ability to produce at a higher rate is what is problematic.

From reading your posts, it is clear to me, that you have probably never owned a business, or been in a position of leadership in one, as your posts read as some 'pie in the sky still in the classroom' philosophy.