Apple’s most loved and profitable product [iPhone] continues to get larger and more expensive as it matures. iPad Pro and Apple Watch also get larger and more expensive as they mature. It feels strange that we’re expecting [counting on] the game changer platform to get smaller and less expensive [for it to succeed]
This isn’t really the case though.
The original iPhone at launch required $599 for an 8 GB model, a two-year contract, and a special (extremely expensive for the time) AT&T plan.
Even back then the estimations for the actual cost of the phone over those two years was around $800-$900.
The iPhone 3G definitely brought down prices, but not as dramatically as you would think, mostly because of again those hidden AT&T premiums.
The first iPhone Apple offered totally unlocked in the US (if I’m not mistaken) was the 4S, and for a 16 GB model it started at $649 and went up to $849 if you wanted the 64 GB model, and this is all in 2011 money.
Even when they later tried to do a budget model with the iPhone 5C, it was still $549 off contract, and that’s around $720 and today’s money.
$720 for what they considered the “budget” model.
Today you can get a brand new iPhone SE from Apple, which has a very modern processor, 5G, and at least another five years of software updates, totally unlocked, absolutely no carrier involved whatsoever for $429.
And if you go prepaid, you can get it even cheaper, as low as $200. And you own the phone, no contracts, nothing.
To put it another way, if that iPhone SE came out in 2007 at the exact price it is today, it would’ve only been around $250, totally unlocked with no contracts.
To put it even clearer, keeping inflation in mind, between 2007 and now the entry price for an iPhone has pretty much been cut into fourths.
And also keeping inflation in mind, the latest generation iPhone 15 pro base model… Is barely any more expensive than that Original iPhone with inflation.
Another product that was originally criticized for its price before moving on to becoming apples best selling Mac was the MacBook Air.
It originally started at $1799 for a version with a hard drive, and $3199 for a version with an SSD.
By 2010 those prices were pretty much cut in half, with a 13 inch MacBook Air starting at $1299 and coming with an SSD by default, and a new 11 inch at $999.
And again with inflation, all of these prices are actually several hundred dollars more expensive.
As for the iPad it started at $499 (around $697 in todays money).
These days you can get an iPad nine from Best Buy for $250, and even straight from Apple the iPad nine, 10, mini and air are all cheaper than $697, the inflated price of that original iPad.
You can get a brand new iPad for around 1/3 the cost of what that original was.
Of course the Apple Watch hasn’t had as dramatic of a price drop over the years, but it should be noted that the SE is frequently on sale for under $200, which at this point is several hundred dollars cheaper than that original. Even the sport model.
So yeah, it’s pretty certain that if the Vision Pro is successful, overtime the prices will fall. Maybe not as dramatically as some are hoping, I highly doubt we’re going to see a vision pro reach iPhone levels of pricing within the decade.
But I would absolutely not be shocked if we see an “apple vision Air” or “SE” that’s under $2000, around the pricing of the studio display, before the end of the decade.