Will new iPhone price increase be due to features or aesthetics?

Discussion in 'iPhone' started by Rogifan, Jul 23, 2017.

  1. Rogifan macrumors P6

    Rogifan

    Joined:
    Nov 14, 2011
    #1
    John Gruber’s latest podcast had on Rene Ritchie and they were discussing the new iPhones. Gruber thinks Apple has to test the limits of the upper price range with the thinking that someone else will so let Apple get there first. Which got me thinking will the new OLED phone follow the Apple Watch or the iPad? Will the phone mostly have feature parity with the 7S (assuming that’s what Apple calls it) and just charge more for materials used and aesthetic looks or will it follow the iPad and have hardware/features that the 7S & 7S Plus don’t? Assuming the rumors of $1000+ starting price iPhone are true there’s no way Apple would expect it to be the flagship, best selling model. But with most Android OEM’s mainstream flagship models going near bezel-less I can’t see how the 7S models ship with 7 like bezels.

    So what then sets apart the more expensive iPhone? Will Apple justify the higher price based on materials used to make it ala stainless steel and ceramic Apple Watch? Or will it be more like a Mac with better hardware specifically targeted to “professionals”? Outside of the camera or sensors to enhance AR I can’t see what hardware they could add to make it more “professional”. My guess is if Apple is trying to test the high end it’s going to be more about looks than features. Unless there is some hardware component (outside of the display) that is very expensive or difficult to manufacture in large quantities I suspect it will follow the Apple Watch ceramic model of being more expensive because of materials used not hardware inside. I think there’s plenty of evidence to show people will pay more for something they think looks nicer even if functionality isn’t much different. Let’s not forget Apple charged more for the black plastic MacBook than the white. I doubt it’s because the black one was more difficult to make.
     
  2. Volgin Suspended

    Volgin

    Joined:
    Jul 17, 2017
    Location:
    Smithfield, RI
    #2
    Neither. The increase will be due to Apple knowing they can charge too much and the lemmings will pay it.
     
  3. Lloydbm41 macrumors 68040

    Lloydbm41

    Joined:
    Oct 17, 2013
    Location:
    Central California
    #3
    The iPhone 8 or Pro or whatever they plan to call it will be $1000 for the unlocked version sold by Apple stores and their authorized retailers. iPhones sold from carriers will be subsidised at a much lower starting point. I'm guessing $850 for the entry level iPhone 8 based on the pricing I see for 32gb models in stores now.
     
  4. Infiniverse48 macrumors 6502a

    Joined:
    Jun 28, 2017
    #4
    Those two know nothing. The guy suggested $1500 possibly. That is an incredibly unintelligent suggestion for a smartphone. It will start at $999 max, and go to $1150ish.
     
  5. AFEPPL macrumors 68030

    AFEPPL

    Joined:
    Sep 30, 2014
    Location:
    England
  6. Rogifan thread starter macrumors P6

    Rogifan

    Joined:
    Nov 14, 2011
    #6
    But he adjusted it down now and said $1200. Not saying he’s right but if it’s not intended as the 7 replacement then it wouldn’t surprise me.
    --- Post Merged, Jul 23, 2017 ---
    Maybe, but if it follows the Apple Watch model them it isn’t greed IMO. For me the only way it would be greed is if it was the only new iPhone and anyone upgrading was expected to pay more. But Apple isn’t that stupid.
    --- Post Merged, Jul 23, 2017 ---
    No, because people wouldn’t pay for it. That’s why I expect a 7S (or whatever Apple calls it) to be the successor to the 7 (and Apple’s biggest seller) and this OLED phone to be affordable luxury ala the ceramic Apple Watch. I’ll be very surprised if it has a different SoC or hardware technology the 7 successor doesn’t. My guess is it’s going to be the best looking phone with the best display. You’re paying for superior aesthetics not better processor or more RAM. The only thing I could maybe see is if they have something mind blowing with the camera and it’s something they couldn’t secure in enough volume for the mainstream flagship device.
     
  7. Lloydbm41 macrumors 68040

    Lloydbm41

    Joined:
    Oct 17, 2013
    Location:
    Central California
    #7
    The iPhone 8 won't be relegated to niche or luxury status. I guarantee you 100%, that it will be the biggest selling iPhone since the 6, because people will want the newer design. Cost be damned, people will pay. They may just go through carriers more than Apple brick and mortar/online to get it.
     
  8. Infiniverse48 macrumors 6502a

    Joined:
    Jun 28, 2017
    #8
    No. The OLED iPhone exists because it's time to move to an OLED iPhone. It happens to be that the number of iPhones Apple sells disallows them from producing two OLED iPhones in the same year (in 2017), or even one OLED iPhone without other iPhones which have LCD displays.

    Next year will see the Plus-sized OLED and there on you'll be back to two new iPhones/year.
     
  9. CTHarrryH macrumors 68000

    Joined:
    Jul 4, 2012
    #9
    Even if (and I mean IF)it weren't justified because of features and costs they have to differentiate between the 7s models and the 8 so cost is one method. Doesn't mean any of this is going to happen just because someone thinks it might. I know it is strange but maybe people should wait to learn the actual features and cost when it is announced.
     
  10. Smeaton1724 macrumors 6502a

    Smeaton1724

    Joined:
    Sep 14, 2011
    Location:
    Leeds, UK
    #10
    The pricing of the new models has me concerned, especially in the U.K. The top spec iPhone Plus model will come in around £1000, our currency has tanked! That's why I've just bought a second hand mint condition iPhone 7 Plus 256GB in Red, Apple price is currently £919, second hand retailer price £620. I'm trying it out for the week. The way I see it the Plus has a certain air of future proofing - 3GB Ram, dual cameras, good resolution, Touch ID 2 and force touch. The new iPhone 8/8 plus won't have massively greater specs and features and I think I'll save around £400. The downside is size of device.....
     
  11. JPack macrumors 68030

    JPack

    Joined:
    Mar 27, 2017
    #11
    Apple has traditionally charged 3x BOM as the retail price.

    If you look at the BOM for iPhone 4 through 7, the cost went from about $180 to $220.

    Until IHS tears down the OLED iPhone to determine cost, it will be difficult to guess where the increase in retail price comes from.
     
  12. Newtons Apple macrumors Core

    Newtons Apple

    Joined:
    Mar 12, 2014
    Location:
    Jacksonville, Florida
  13. ApfelKuchen macrumors 68030

    Joined:
    Aug 28, 2012
    Location:
    Between the coasts
    #13
    Higher price justified by some combination of features and appearance? Of course, we see that with every model - it's part of the Apple marketing formula (and not only Apple's, of course). Whether it's more appearance/less features or vice versa is generally in the eyes of the beholder. People who find a particular feature to be useless or non-compelling will discount its value to zero - appearance is relatively worthless to some people, a dual-lens camera may seem worthless to some others. Some would be totally geeked-out by 3-D facial recognition and line up around the block, others would be suspicious and avoid the 1.0 version.

    Overall, Apple has to be very aware of what interests and motivates various kinds of buyers, and will produce a feature mix that appeals to a wide range of people.

    There's no doubt the "8" will have a combination of both distinctive features and distinctive appearance. That's certainly what's been coming down the rumor pipeline. Any discussion beyond that tends to be "This is what I think of the various, rumored features." We rarely speak for more than ourselves when we do this; we prefer to believe the majority are just like ourselves.

    The test of truly great marketing is when they can get us excited about features we normally would not care about.

    I once purchased a used, 25th Anniversary-edition Ford Mustang with 2.5 liter engine. It was also available with a 5.0 liter, but the original owner was far more interested in the appearance and cachet than in driving a muscle car (clearly, Ford was aware of this, or it would have only been available as a 5.0). Anyway, the 2.5 was adequate to my needs, too. To me, the appearance and 25th Anniversary nameplate were more of a curiosity than a motivation to buy - the price was right, and it was as much car as I needed.
     
  14. Glideslope macrumors 603

    Glideslope

    Joined:
    Dec 7, 2007
    Location:
    A quiet place in NY.
    #14
    If accurate it would be $999 and $849 respectively. Personally, I believe it will start at $999 and $1,199. :apple:
     
  15. Dave245 macrumors 603

    Dave245

    Joined:
    Sep 15, 2013
    #15
    A mixture of both really, 3D camera for facial recognition, AR features and so on will make it appealing to people, let's not forget that this year is the 10th anniversary of the iPhone and Apple are going all out. There are even rumours (as mad as it is) about Apple's next years iPhone 9! If this year is called the iPhone 8 then next years version will probably be called the 9!

    Personally I'm looking forward to it, if these features are true and Apple go all out I don't see people having a problem with buying the iPhone 8, it will be a VERY big upgrade where people buy them in droves.
     
  16. TheRealAlex macrumors 65816

    Joined:
    Sep 2, 2015
    #16
    They are testing out ultimate prices because they want to make it a social filter. The stock broker making $400,000 Plus a $1,000,000 Bonus does not drive the Same car a 25 year old working at Target drives he drives a Honda Civic.

    So Apple and other tech companies want to create social filters. And Phones and devices So Expensive only a certain class of buyer wants it. Or maybe can afford it.
     
  17. Dave245 macrumors 603

    Dave245

    Joined:
    Sep 15, 2013
    #17
    It's rumoured to be $1100 for the 128GB model and $1,200 for the 256GB model of the iPhone 8/Pro.
    --- Post Merged, Jul 24, 2017 ---
    That is nonsense, just because some of us are lucky enough to be able to afford to buy these things doesn't mean for a second that it's a "social filter" or a class thing!
     
  18. Glideslope macrumors 603

    Glideslope

    Joined:
    Dec 7, 2007
    Location:
    A quiet place in NY.
    #18
    If no 64g, then I'll say $1,099 for 128g and $1,299 for 256g. They will sell every single one they can make. It will be like throwing a handful of pellets into a tank in a Fish Hatchery. I'll keep my 7+. ;)
     
  19. McScooby macrumors 6502a

    Joined:
    Oct 15, 2005
    Location:
    The Paps of Glenn Close, Scotland.
    #19
    You're mostly always cheaper buying from a carrier as part of a package (if u include minutes. txts, data). Personally ymmv, but i'd prob wait & opt for the AppleCare+ package when a new one drops in sep/oct. U can trade-up after 12mths for the same price u paid but incl AppleCare & the benefit of the new iPhone or keep for the remaining 10mths.
     
  20. Volgin Suspended

    Volgin

    Joined:
    Jul 17, 2017
    Location:
    Smithfield, RI
  21. Lloydbm41 macrumors 68040

    Lloydbm41

    Joined:
    Oct 17, 2013
    Location:
    Central California
    #21
    Won't happen. Carriers can't afford to have phones selling for over $1000. I happen to be a manage for T-Mobile and while 256GB iPhone models sell on occasion, the vast majority are 32GB. Carriers need to sell the iPhone and they will subsidize to ensure everyone can afford the phone.

    Apple on the other hand can sell above $1000 in their stores/retailer outlet stores. Unlocked variants always tend to sell for more anyway.
     
  22. ApfelKuchen macrumors 68030

    Joined:
    Aug 28, 2012
    Location:
    Between the coasts
    #22
    All money is green. They're not trying to filter out "certain kinds of people" because they only want to sell to "certain kinds of people." They're happy to sell to anyone willing to pay their price, regardless of politics, gender, nationality, family history, race, religion, annual income, etc.

    Yes, they are guilty of failing to produce goods that anyone can afford. Their formula for profit is to sell fewer units at higher profit margins. People with higher levels of disposable income are more likely to spend on intangible factors like perceived quality. But when it comes down to it, even a $1200 smartphone is far more affordable luxury than a Ferrari, Mercedes, or BMW. I can afford an iPhone, and I drive a Honda Civic (OK, I'm not 25 years old, and I don't work at Target).
     
  23. Newtons Apple, Jul 25, 2017
    Last edited: Jul 25, 2017

    Newtons Apple macrumors Core

    Newtons Apple

    Joined:
    Mar 12, 2014
    Location:
    Jacksonville, Florida
    #23
    I am afraid that is no true any more.

    For 2018 Apple will be moving to all OLED screens and that will also raise the cost of iPhones. I am afraid the best is now going to cost over 1K, easy.

    The new 8 is supposed to be a premium device and I am sure the price will be premium.
     
  24. Volgin Suspended

    Volgin

    Joined:
    Jul 17, 2017
    Location:
    Smithfield, RI
    #24
    I understand that people will pay the higher price. I just think it's overpriced for what you get. It reminds me of the Motorola Razor that was $500 when it first debuted.
     
  25. Smeaton1724 macrumors 6502a

    Smeaton1724

    Joined:
    Sep 14, 2011
    Location:
    Leeds, UK
    #25
    I prefer to own the phone outright and use Giff gaff on a rolling 30 day, usage is only £10 a month as have excellent wifi at home and at work. Can also up it for a few months if needed. So, approx £120 a year in minutes/text/data and keep the phone 2 years then resell. Always works out cheaper than carrier plans of say Vodafone, EE, O2 etc.
     

Share This Page