What should the starting price be for the next flagship iPhone?

[Just_Me_D]

Imagine running into Tim Cook and striking up a conversation with him. For the sake of this discussion, let's say that the subject of the next iPhone came up and Tim looks at you and asks, "what should the starting price be for the next flagship iPhone?" What would you tell him?

 

[xanadome]

I bet he is not going to ask this question as he never admitted that there was any pricing issue.
Ever since he issued a memo (both to the market and Apple employees) that iPhone unit sales have actually been declining (actually in the last few years), and of all the red herring reasons he listed (soft Chines market is one, he never ever admitted nor even mentioned that the overpricing was the issue.
Having said that, your question is meant to be a hypothetical question (and very legitimate).
I would say $200 less across all "X" models and the sales will explode, and he can still maintain the "total" profit level he wanted to maintain. High (excess) profit level and fewer unit sales number, or the appropriate and fair price level and exploding unit sales. But in doing this, he has to forget about this image of iPhone being for the well-to-dos, high end or luxury items etc., at least to some extent. Memory (storage) price alone has so much built-in markup (memory is a cheap commodity now and Apple can buy them at incredibly low cost now. For the Xs" for example, bumping the storage capacity fro 64Gb to 128Gb cost you $150 and 128Gb to 512Gb at $200? And how many memories Apple sells this way?).
Another way to boost the sales is to maintain the current price level but include the AirPod for example in the package.
This will also trigger the increased sales of all iPhone related accessories (still expensive) such as the cables, dongles, AirPods, and battery cases, you name it. Simple
If Apple would (could) do this, I will bow down my head and thank Apple profusely, lol.

 

[xanadome]

bumping the storage capacity fro 64Gb to 128Gb cost you $150 and 128Gb to 512Gb at $200? And how many memories Apple sells this way?).

After writing this, it popped up in my head that all Apple has to do is to forfeit memory markups including the one for the 64Gb. It just means Apple would give up one of the biggest profit sources in the iPhone cost structure, and it's even proportionate over the level of models.

This idea might be easier for Mr.Cook to swallow.

 

[anon(50597)]

$1500.
I want to see how many people still buy them (it won’t be me)
While I love Apple products, I am done paying exorbitant prices. I still have my iPad Pro and MacBook Pro and will continue to use them as long as they perform.
I have moved on to a Nokia 7.1 for my phone though. It easily does everything my iPhone did but at a much more reasonable cost of $350. Value is important to me and I feel Apple has lost their way providing value to their customers.
JMHO.

 

[calebt]

Take the cost of the phone double it and that should be a fair price. Just my opinion

 

[Just_Me_D]

$1500.
I want to see how many people still buy them (it won’t be me)
While I love Apple products, I am done paying exorbitant prices. I still have my iPad Pro and MacBook Pro and will continue to use them as long as they perform.
I have moved on to a Nokia 7.1 for my phone though. It easily does everything my iPhone did but at a much more reasonable cost of $350. Value is important to me and I feel Apple has lost their way providing value to their customers.
JMHO.

$1500?....oh heck no! Of course some people would buy it, but like you, I would not.

 

[Just_Me_D]

Take the cost of the phone double it and that should be a fair price. Just my opinion

Do you have an idea of what the cost is?

 

[calebt]

No idea

 

[Just_Me_D]

No idea

FYI: I have not verified the accuracy of the information therein.

https://www.google.com/amp/s/nypost...-the-1249-iphone-xs-only-costs-apple-443/amp/

 

[anon(50597)]

$1500?....oh heck no! Of course some people would buy it, but like you, I would not.

I was being facetious because I see so many posters say they don’t care what it costs, they are buying it. They fuel Apple’s high prices.
As more and more Android devices become affordable (see my post above) and provide, to most, an equal experience Apple will have to give users a more affordable alternative.

They’ve gotten themselves into this. I’ll sit back and see how they react. In my opinion, if they don’t drop their flagship prices they may be in trouble.

 

[calebt]

So with that, a thousand to twelve hundred it's a fair price. There's alot of research and development that goes into the phones also not just hardware.

 

[Just_Me_D]

So with that, a thousand to twelve hundred it's a fair price. There's alot of research and development that goes into the phones also not just hardware.

We both know that there will be those who say that since Apple is almost a trillion dollar company, it shouldn’t price the iPhone at double the cost, but perhaps at half. If the device cost $450 to make, recoup the $450 and then price it at $225 higher than cost for a total of $675.

 

[Just_Me_D]

I was being facetious because I see so many posters say they don’t care what it costs, they are buying it. They fuel Apple’s high prices.
As more and more Android devices become affordable (see my post above) and provide, to most, an equal experience Apple will have to give users a more affordable alternative.

They’ve gotten themselves into this. I’ll sit back and see how they react. In my opinion, if they don’t drop their flagship prices they may be in trouble.

I knew you were being facetious...

 

[anon(50597)]

So with that, a thousand to twelve hundred it's a fair price. There's alot of research and development that goes into the phones also not just hardware.

And how much do those costs add to the price?
We all know Apple is not an innovator when it comes to smartphone features. They are followers who supposedly perfect them. I don’t think that can more than double the cost.

 

[xanadome]

FYI: I have not verified the accuracy of the information therein.

https://www.google.com/amp/s/nypost...-the-1249-iphone-xs-only-costs-apple-443/amp/

Yes, I always thought that the cost of any electronics gadget would be less than 50%. I believe it and it makes me so disappointed at recent Apple. Even in Jbobs days, Apple products were always high priced (maybe not overpriced), but I was willing to pay it. I do not want Appl to sell chaeap anything. High end is fine and even preferrable but someone in Applle is too profit obsessed can to leave his calculator behind. Apple should not be run by calculators.

 

[xanadome]

I want to see how many people still buy them (it won’t be me)

It could be very true. I am one of them. I have been buying Apple's updates, iPhone particularly, every single year automatically and outright. (Except Mac lines of products. Aplle does not update them for a long time and the ones of a few to even several years old machines are sold at the same price!).
But when the X was out with so much hype, I stopped to think and for the first time, I did not upgraded it

I have moved on to a Nokia 7.1 for my phone though. It easily does everything my iPhone did but at a much more reasonable cost of $350. Value is important to me and I feel Apple has lost their way providing value to their customers.

This is definitely happening and Apple should know this is very dangerous. I for one is seriously choosing the best Android phone now on my one of two lines. I will never leave the iPhone but really want to flirt with the other world. Many of my friends are sneaking out of the Apple's walled gardeen now.

 

[Just_Me_D]

Yes, I always thought that the cost of any electronics gadget would be less than 50%. I believe it and it makes me so disappointed at recent Apple. Even in Jbobs days, Apple products were always high priced (maybe not overpriced), but I was willing to pay it. I do not want Appl to sell chaeap anything. High end is fine and even preferrable but someone in Applle is too profit obsessed can to leave his calculator behind. Apple should not be run by calculators.

I hear what you’re saying, but there was a time when consumers understood that they control the price. A company can charge whatever it wants, but it’s up to the consumers to decide whether to pay it or not. If we pay it then apparently the price is acceptable, but if we don’t then the company will have to decide how it wants to proceed. They know that making a little bit of money is better than making no money at all.

 

[xanadome]

I hear what you’re saying, but there was a time when consumers understood that they control the price. A company can charge whatever it wants, but it’s up to the consumers to decide whether to pay it or not. If we pay it then apparently the price is acceptable, but we don’t then the company will have to decide how it wants to proceed. They know that making a little bit of money is better than making no money at all.

Yes, true.
But Apple this time pushed the envelope too overboard and their loyal customers fell off the cliff, lol.
Both Apple and customers learned much.

 

[calebt]

We both know that there will be those who say that since Apple is almost a trillion dollar company, it shouldn’t price the iPhone at double the cost, but perhaps at half. If the device cost $450 to make, recoup the $450 and then price it at $225 higher than cost for a total of $675.

There's more to it, software development design after sales Service and a bunch of other stuff I'm missing. If you buy the phone at $675
They would probably charge a subscription for the OS and all other software included with the phone.

 

[Just_Me_D]

There's more to it, software development design after sales Service and a bunch of other stuff I'm missing. If you buy the phone at $675
They would probably charge a subscription for the OS and all other software included with the phone.

I understand that. I was using that price point as an example of how some people would want Apple to price the device.