Apple's move to the high end could boost revenueĪpple's new iPhone XS models start at $1,000. Now, the least expensive phone Apple offers is the iPhone 7, which starts at $450. Its least expensive model to that point, the SE cost $350. While launching the new phones, Apple discontinued the iPhone SE. The iPhone 8, which launched then as a step down from the iPhone X, had a starting price of $700.īut Apple's move to the high end was as pronounced by what it did behind the scenes as what it did onstage at the Steve Jobs Theater at its Cupertino, California, headquarters. That appearance fades when you compare the iPhone XR with last year's lineup. The company's other new phone, the XR, starts at $750, which looks like a bargain compared with the other two models. A year after launching its first phone with a $1,000 starting price, the iPhone X, Apple introduced another thousand-dollar model to replace it, the XS, and a jumbo-size version, the XS Max, which comes with a $1,100 starting price. Indeed, its turn to the top of the market was clear at the company's press event on Wednesday. The company seemed to be decidedly turning away from that strategy of late. ![]() And when Apple has introduced new iPhone models, it has consistently discounted older ones, making them more accessible to a wider range of consumers. The iPad's $500 price was considered a bargain when it first launched. When the iPod was its primary product, Apple offered models such as the Shuffle and the Nano with prices within reach of average consumers. And its new iPhones have always carried a premium price over competing smartphones with similar performance.īut for years, particularly with Steve Jobs as CEO, the company made an effort to appeal to more mainstream consumers. Its Mac computers have typically been more expensive than their Windows-based rivals. Apple has always commanded a premiumĪpple, of course, has always played in the more affluent end of the market. But it could prove to be a bad bet in the longer term, particularly if it means fewer consumers turn to Apple to purchase their first phone or other device. That focus on the high end has already started to pay off for the company in the form of near-term profits, even as it recently surged past a trillion-dollar market cap. Instead, the iPhone maker seems to believe that the way forward is to be the Louis Vuitton of consumer electronics. ![]() Its move to revamp its device lineup by doubling down on thousand-dollar phones, and simultaneously dropping its least expensive model, has made clear that it's no longer overly concerned with appealing to customers of more limited means. But they also could lead to stagnating phone sales and discourage people from becoming Apple customers, which could have long-term consequences for the company.Īpple, it seems, has now fully bought into the notion that it's an upscale brand.The moves could boost Apple's near-term revenue and profits.At the same time, it cut its lowest-priced iPhone.A year after debuting its first thousand-dollar smartphone, the company replaced it with two more. Apple is increasingly transforming itself into a luxury brand.Account icon An icon in the shape of a person's head and shoulders.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |