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

[anon(50597)]

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’m not saying I totally disagree with you, there are advantages they bring with their products, but at what cost?
I have owned many iPhones including the original (still have it). I have never, as a testament to Apple, needed one repaired or serviced. As far as a subscription to the OS and the software, why would I pay that?

It all comes down to value to the customer. If you feel you are getting value, it may be worth the high cost. They lost me with the over $1000 move. Each individual has to make that decision and it seems more people are moving to something else. It will be interesting to see prices in 2019.

 

[Just_Me_D]

I’m not saying I totally disagree with you, there are advantages they bring with their products, but at what cost?
I have owned many iPhones including the original (still have it). I have never, as a testament to Apple, needed one repaired or serviced. As far as a subscription to the OS and the software, why would I pay that?

It all comes down to value to the customer. If you feel you are getting value, it may be worth the high cost. They lost me with the over $1000 move. Each individual has to make that decision and it seems more people are moving to something else. It will be interesting to see prices in 2019.

To be fair, there have always been people moving to and from the iPhone - more to than from, in my opinion. Even with the first $999+, some people chose something else, including to purchase an iPhone 8 or an iPhone 8 Plus model.

This particular time around, some chose something else, including the iPhone XR.

 

[xanadome]

One thing that tips things in favour of Apple (and their pricing) is the existence of the Apple stores. I buy most of the Apple stuff outright at an Apple store. It is very handy. You go there to check out new products hands-on, no-question-asked return policy, and overall ease of mind they provide that when something happened, real people are there to answer etc. Buying an expensive phone online is not for me.
I can justify some premium for that (but in moderation.

 

[anon(50597)]

To be fair, there have always been people moving to and from the iPhone - more to than from, in my opinion. Even with the first $999+, some people chose something else, including to purchase an iPhone 8 or an iPhone 8 Plus model.

This particular time around, some chose something else, including the iPhone XR.

Very true and I should have been more specific.
Your original question was about the flagship phones. The fact that many people moved to the XR shows, I believe, people are tired of paying high prices. Heck, there’s a lot of people who want an SE2.
The next couple of years will show us the direction Apple will go. If people keep paying high prices, they will keep making them. If not, i’m sure they have a plan.

 

[anon(50597)]

One thing that tips things in favour of Apple (and their pricing) is the existence of the Apple stores. I buy most of the Apple stuff outright at an Apple store. It is very handy. You go there to check out new products hands-on, no-question-asked return policy, and overall ease of mind they provide that when something happened, real people are there to answer etc. Buying an expensive phone online is not for me.
I can justify some premium for that (but in moderation.

I totally agree. Not only does it provide service, but it almost ensures a sale. People find it hard to walk out of there without a shiny new device.

 

[Annie_M]

When I purchase my iPhones, I usually skip a generation... I started with the 4, then the 5s, then the 6s and now my 8 Plus. So I'm not quite feeling the pinch that those are who purchase the latest and greatest every year. I also trade my iPhone's in the help with the price.

That said, I did wince at the higher prices this year. I do realize the costs involved in developing and manufacturing a new model, and I realize that Apple is a business and needs to make a profit. So I think between $800-$1100 give or take a bit is what I'd be comfortable with. As I said in another thread, I wonder if the higher prices this year, and the less than desired amount of sales, might to the consumer's benefit next year! Time will tell.

 

[Ken Magel]

Apple needs to have a low cost (say $400 - 500) model in their lineup to appeal to customers who cannot afford or refuse to pay the $900 and up that the flagship phones cost. If they are pivoting to be a services company, they no longer need or should have the margins they are used to on hardware. Instead, about 20% profit margin on hardware should be sufficient. They want to have numbers of devices out there much more than profit per phone.

 

[Ken Magel]

One factor Tim Cook and others at Apple cite as a reason for the price is the extensive service and courses they provide at Apple stores. I live 250 miles from the nearest Apple store. If they want to provide all the services at Apple stores, they should either charge the many people like me less (considerably less) since we cannot use an Apple store regularly, or provide much more through the Internet for distant customers. I suspect there are many actual and potential customers like me who live too far away to use an Apple store.

 

[Just_Me_D]

Apple needs to have a low cost (say $400 - 500) model in their lineup to appeal to customers who cannot afford or refuse to pay the $900 and up that the flagship phones cost. ...

I’m not sure if I agree because when the iPhone 5C came along, it was viewed as cheap and didn’t fit the image associated with Apple and quality. Until people actually had the opportunity to see the iPhone XR in person, many viewed it as a cheap iPhone, but that has since waned.

In my opinion, “low cost” and Apple do not go hand in hand and I think people in general will not be receptive to what they consider to be below Apple standards, whether real or imagined.

 

[anon(50597)]

Apple needs to have a low cost (say $400 - 500) model in their lineup to appeal to customers who cannot afford or refuse to pay the $900 and up that the flagship phones cost. If they are pivoting to be a services company, they no longer need or should have the margins they are used to on hardware. Instead, about 20% profit margin on hardware should be sufficient. They want to have numbers of devices out there much more than profit per phone.

But how are they going to become the first company worth a bazillion dollars without higher profit margins?

 

[anon(50597)]

I’m not sure if I agree because when the iPhone 5C came along, it was viewed as cheap and didn’t fit the image associated with Apple and quality. Until people actually had the opportunity to see the iPhone XR in person, many viewed it as a cheap iPhone, but that has since waned.

In my opinion, “low cost” and Apple do not go hand in hand and I think people in general will not be receptive to what they consider to be below Apple standards, whether real or imagined.

How will that affect those that want to pay for a flagship?

 

[Just_Me_D]

How will that affect those that want to pay for a flagship?

They’d simply do what they’ve been doing - saving up toward it or get it on a payment plan via their wireless carrier or via Apple.

 

[anon(50597)]

They’d simply do what they’ve been doing - saving up toward it or get it on a payment plan via their wireless carrier or via Apple.

Correct.
But having a flagship and a cheaper model doesn’t tarnish the brand, does it?

 

[Just_Me_D]

Correct.
But having a flagship and a cheaper model doesn’t tarnish the brand, does it?

Tarnish? No, I don’t think so, but I do think that people, at least here in the States, wouldn’t be all that receptive because of Apple’s established image and higher pricing.

 

[Quis89]

$750-800 seems fair.

 

[anon(50597)]

Tarnish? No, I don’t think so, but I do think that people, at least here in the States, wouldn’t be all that receptive because of Apple’s established image and higher pricing.

I guess that could be true. People’s perception often lead them more than common sense. Apple certainly has built their brand image and it has served them well.
I’m more interested, as someone above pointed out, that if they are moving more towards a services buisiness, like Microsoft, if this will change things in their pricing scheme. The more products they get out in the hands of customers, the more services they can sell. All speculation at this point of course.

 

[Wotchered]

Make the biggest phone with the most ridiculous memory spec £999.99, price downward according to lesser spec.

 

[Ledsteplin]

Not only do I think the starting prices are too high, but also the bump ups for more storage capacity. I have no idea what it costs Apple to add more storage capacity, but guessing it's not much. $150 and $200 just seems too much. Many choose the 64GB model because they either can't afford more storage, or because they don't think it's worth paying that much more for. So they make do with 64GB.
I think prices should look more like this:
iPhone XS
64GB - $849
256GB - $949
512GB - $1049

iPhone XS Max
64GB - $949
256GB - $1049
512GB - $1149

 

[Ken Magel]

I live 250 miles from the nearest Apple store. I think many people live too far away from any Apple store to be able to use them regularly. I wish Apple did not use the many services provided by the store to help justify their prices. Perhaps, they could reduce the price of a phone for those who live far from an Apple store by $25?

 

[jimpilot]

I live 250 miles from the nearest Apple store. I think many people live too far away from any Apple store to be able to use them regularly. I wish Apple did not use the many services provided by the store to help justify their prices. Perhaps, they could reduce the price of a phone for those who live far from an Apple store by $25?

Or they could just charge for those services. People who want or need them will be glad to pay, others won’t supplement the cost