[Just_Me_D]

Remember when you were a kid and you'd tell your family and friends that you'd buy a super expensive sports car as soon as you become an adult just to learn that plans don't always play out in the timeframe you prefer? Old people used to tell me that my eyes were always bigger than my wallet....and they were right.

When the original iPhone went on sale, it cost $600 upfront and only a fraction of the populace were able to or willing to buy one. Nowadays, pretty much anyone can buy one (generally speaking, of course).

With the new $1000 starting point for the new iPhone X, XS, and XS Max models, is Apple possibly pricing people out of their product line as stated in Quis' excellent thread via the following link

https://forums.imore.com/general-app...uct-lines.html

or have they determined that more people will make the adjustment and eventually be willing to buy them as time progresses?

What do you think?

[TgeekB]

It sounds like the XR is selling pretty well, which may be an indication many people are not ready to spend over $1000.

[Just_Me_D]

It sounds like the XR is selling pretty well, which may be an indication many people are not ready to spend over $1000.

I don’t doubt that at all. Still, do you think those people will concede and eventually spend the extra money for the more expensive models?

[Spencerdl]

Great Topic again D and Quis's thread was just as good and enlightening. It's almost as though Apple knows that consumers are going to pay almost 3/4X the actual cost of their products because consumers are willing to go into dept for items they want. I would say yes, people will spend $1,000+ on smartphones going forward especially since you can do a payment plan with no interest (for now anyway).

[TgeekB]

I don’t that at all. Still, so you think those people will concede and eventually spend the extra money for the more expensive models?

I wonder what they would have done if the XR didn’t exist.
Continue to use their current device?
Go to a less expensive Android device?
Buy the more expensive device?
Only they can tell us.

I opted to get a lightly used 256gb X for about $600.

[Just_Me_D]

Great Topic again D and Quis's thread was just as good and enlightening. It's almost as though Apple knows that consumers are going to pay almost 3/4X the actual cost of their products because consumers are willing to into dept for items the want. I would say yes, people will spend $1,000+ on smartphones going forward especially since you can do a payment plan with no interest (for now anyway).

Well stated, sir, and time will tell. I know one thing, iOS 13 AND the next X-priced models has better have a wow factor for me.

[Just_Me_D]

I wonder what they would have done if the XR didn’t exist.
Continue to use their current device?
Go to a less expensive Android device?
Buy the more expensive device?
Only they can tell us.

I opted to get a lightly used 256gb X for about $600.

The spellchecker screwed up my previous reply to you. Sorry about that. I’ve made the corrections therein.

As for tour questions, I do believe that many of the people who now own an iPhone XR probably would have continued using their current device or tried Android had it not existed. Of course, some would have gone ahead and purchased one of the XS models. Some did before switching it out for the XR.

[TgeekB]

The spellchecker screwed up my previous reply to you. Sorry about that. I’ve made the corrections therein.

As for tour questions, I do believe that many of the people who now own an iPhone XR probably would have continued using their current device or tried Android had it not existed. Of course, some would have gone ahead and purchased one of the XS models. Some did before switching it out for the XR.

It will be interesting to see what their lineup is like next year. Sales are not robust and it may be that expecting people to pay high prices because the “iPhone is a luxury device” strategy is no longer working. If true, how will Apple react?

[Just_Me_D]

It will be interesting to see what their lineup is like next year. Sales are not robust and it may be that expecting people to pay high prices because the “iPhone is a luxury device” strategy is no longer working. If true, how will Apple react?

The iPhone is their bread and butter. They would be smart to do what they are currently doing, in my opinion, making sure they have a quality built iPhone priced in the $700 - $800 range as well as provide devices, albeit in less quantity, in the $1,000+ range. There will always be people who will want to separate themselves in financial terms. Apple know this.

Having said that, if consumers understand that they control pricing then Apple will have to make adjustments or risk losing their customers.

[nikkisharif]

I honestly think consumers will concede & just become accustomed to that price point...until it changes again. While the XR is an amazing device, it’s too big for a lot of people. Yes, there will be some people that go over to Android for a better device at a lower price point, but not everyone uses or likes google services. There will also be some that keep their devices longer or buy an older model device.

Personally, I don’t think the price is bad considering my iPhone 5 was $900. Inflation happens and you have an option to not buy it.

[ksassy]

I believe eventually more people will be willing to swallow the $1000 price tag for an iPhone. Carriers will help this along with longer financing terms. The iPhone X was the first introduction to condition the market and consumer mindset for future pricing. Yes we've seen some push back with sales but not enough for them not to make the iPhone XS and XS Max. In time the consumer will follow and if Apple plays the game right they'll continue to offer a phone in more than one price tier while slowly inching up the base tier price.

[imwjl]

I think apps and use will drive some business purchases but at same time think X and XS also occupy the space more luxurious cars and high end products do.

The first exec who got an XR where I work who also uses Office 365 proved my hunch here. He totally sees his better than iPhone 5S upgrade but can’t see how he would benefit from an XS series. He said “taking videos and playing games is for my wife and kids”.

Phones, tablets and personal computers are all quite mature. There are lots of good choices. It was interesting to see the brothers who own the enterprise where I work where one chose the Max phone and another the Surface Go for the same purpose - the enterprise flavor of Office 365 use and web-based apps when traveling.

One of my kids just chose to put a new battery in and do a screen repair for his iPhone 6 with same passion his sister had for a new phone but can a late teen afford an XS? No, she got a used 7 Plus.

Close to home I also see how Apple services are growing but I don’t know if that will carry the company. We pay for Apple Music, have increased our storage, I’ve moved some media purchases from Amazon, and I also value some high end mobile apps where those are $10 - $20 purchases and/or $10 - $20 per year.

It seems to me like Apple has to have more where the Microsoft Surface sits. Except for some niche use calling iPad Pro a computer replacement is a joke compared to a 12” MacBook or modestly priced Surface Pro series.

It also seems like Apple has to do more with their business team sales and support. The customer service is really good but tech support for troubleshooting business problems is not so good. I have an open problem with an enterprise business app and it was Cisco support who helped us pinpoint it. Apple support doesn’t know how to look outside of their shell the way Microsoft and Cisco do.

[pr1nce]

I’m sure some consumers will concede and be willing to purchase $1000 plus iPhones. As I get older, I won’t be one of those. The price of iPhones today are too expensive. I’ll keep what I have.

[Wotchered]

I was one of those who spent silly money on an XS (it was probably about time) However, I shall not buy another iPhone until this one gets too bad to use, I’m projecting 2022 + so that will take the sting out the cost of this one ! So that will bring the cost of owning an iphone down to about £350 a year, (still too much) plus whatever I can get its running costs down to....

[Just_Me_D]

I honestly think consumers will concede & just become accustomed to that price point...until it changes again.

. I agree, but I don't think the adoption rate will be as fast as before, but we'll see.

While the XR is an amazing device, it’s too big for a lot of people.

No doubt.

Yes, there will be some people that go over to Android for a better device at a lower price point, but not everyone uses or likes google services. There will also be some that keep their devices longer or buy an older model device.

. Well stated, ma'am.

Personally, I don’t think the price is bad considering my iPhone 5 was $900. Inflation happens and you have an option to not buy it.

Like you, I can afford it, but that doesn't mean I want to pay that price for it and a good deal of people feel the same way. You're right in that we have the option not to purchase. No doubt about it.....

[mumfoau]

I feel like the new pricing structure is going to send me back to a time when I was always a version behind even though I'm able to buy the latest.

[Just_Me_D]

I believe eventually more people will be willing to swallow the $1000 price tag for an iPhone. Carriers will help this along with longer financing terms.

I agree on both counts, but we'll see.

The iPhone X was the first introduction to condition the market and consumer mindset for future pricing. Yes we've seen some push back with sales but not enough for them not to make the iPhone XS and XS Max.

. That's debatable, especially since they are opting not to share the exact sales number going forward.

In time the consumer will follow and if Apple plays the game right they'll continue to offer a phone in more than one price tier while slowly inching up the base tier price.

That would be the logical move for Apple, but let's not forgot how iOS factors in the equation. A good deal of people believe that iOS needs a facelift.

[Just_Me_D]

I’m sure some consumers will concede and be willing to purchase $1000 plus iPhones. As I get older, I won’t be one of those. The price of iPhones today are too expensive. I’ll keep what I have.

A good deal of people feel the same way, my friend....

[Just_Me_D]

I was one of those who spent silly money on an XS (it was probably about time) However, I shall not buy another iPhone until this one gets too bad to use, I’m projecting 2022 + so that will take the sting out the cost of this one ! So that will bring the cost of owning an iphone down to about £350 a year, (still too much) plus whatever I can get its running costs down to....

So do you think more people will be willing to buy the $1,000+ iPhone models, but not as frequently? Perhaps every two to three years?

[calebt]

I think people will buy the 1000 plus, but hold them longer. If you like the iPhone your are going to buy the iPhone.

[Just_Me_D]

I feel like the new pricing structure is going to send me back to a time when I was always a version behind even though I'm able to buy the latest.

Yep and you are not alone in your manner of thinking.

[Just_Me_D]

I think apps and use will drive some business purchases but at same time think X and XS also occupy the space more luxurious cars and high end products do.

The first exec who got an XR where I work who also uses Office 365 proved my hunch here. He totally sees his better than iPhone 5S upgrade but can’t see how he would benefit from an XS series. He said “taking videos and playing games is for my wife and kids”.

Phones, tablets and personal computers are all quite mature. There are lots of good choices. It was interesting to see the brothers who own the enterprise where I work where one chose the Max phone and another the Surface Go for the same purpose - the enterprise flavor of Office 365 use and web-based apps when traveling.

One of my kids just chose to put a new battery in and do a screen repair for his iPhone 6 with same passion his sister had for a new phone but can a late teen afford an XS? No, she got a used 7 Plus.

Close to home I also see how Apple services are growing but I don’t know if that will carry the company. We pay for Apple Music, have increased our storage, I’ve moved some media purchases from Amazon, and I also value some high end mobile apps where those are $10 - $20 purchases and/or $10 - $20 per year.

It seems to me like Apple has to have more where the Microsoft Surface sits. Except for some niche use calling iPad Pro a computer replacement is a joke compared to a 12” MacBook or modestly priced Surface Pro series.

It also seems like Apple has to do more with their business team sales and support. The customer service is really good but tech support for troubleshooting business problems is not so good. I have an open problem with an enterprise business app and it was Cisco support who helped us pinpoint it. Apple support doesn’t know how to look outside of their shell the way Microsoft and Cisco do.

In my experience, Apple Customer Service and Support has been top notch, but that hasn't been the case for some people. With that being said, do you think the adoption rate to the new $1,000+ iPhone models will be fast or slow in general?

[libra89]

It sounds like the XR is selling pretty well, which may be an indication many people are not ready to spend over $1000.

Apple is also pushing the Xr hard. I opened the app store today and saw this:


Additionally, Apple seems to be doing this too:
https://www.phonearena.com/news/Appl...hones_id111739

Finally, they apparently also increased the trade in value of other phones to make it cheaper:
https://www.phonearena.com/news/Appl...-time_id111672

I'm of the camp that this is what Apple can do because of the base price of it.

[Just_Me_D]

Apple is also pushing the Xr hard. I opened the app store today and saw this:
https://uploads.tapatalk-cdn.com/201...7ddfedc24d.jpg

Additionally, Apple seems to be doing this too:
https://www.phonearena.com/news/Appl...hones_id111739

Finally, they apparently also increased the trade in value of other phones to make it cheaper:
https://www.phonearena.com/news/Appl...-time_id111672

I'm of the camp that this is what Apple can do because of the base price of it.

Excellent information...Thank you!

[TgeekB]

Apple is also pushing the Xr hard. I opened the app store today and saw this:
https://uploads.tapatalk-cdn.com/201...7ddfedc24d.jpg

Additionally, Apple seems to be doing this too:
https://www.phonearena.com/news/Appl...hones_id111739

Finally, they apparently also increased the trade in value of other phones to make it cheaper:
https://www.phonearena.com/news/Appl...-time_id111672

I'm of the camp that this is what Apple can do because of the base price of it.

Interesting, isn’t it?