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Apple’s 2018 iPhone X Could Get Even More Expensive: Analysts

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According to an analysis of average sales prices (ASPs) by UBS analysts Steven Milunovich and Benjamin Wilson, Apple could raise the price of the new 2018 flagship iPhone X to US $1,100, BusinessInsider is reporting. With the iPhone X not selling as well as expected, analysts say Apple might “counter intuitively” raise the price when it launches the new version of the flagship phone later this year.

Bii apple asp all hardware 4q17

Analysts believe that “once Apple establishes a price band it typically keeps it”, which is consistent with what they have heard from former Apple employees. They highlighted how Apple has been successful in persuading its customers to increase what they pay for iPhones from an average of somewhere around $600 to nearly $800 in the last few years.

The UBS analysts added that the price of the entry-level iPhone SE meanwhile, could fall to as low as US $300.

Apple’s three-pronged strategy is to persuade repeat customers to pay more for newer products while offering cheaper devices for first-time customers. Milunovich and Wilson outlined the strategy in a recent research note:

  • “Cascade top-of-the-line features down the price curve (screen size, camera, etc)”
  • “Move premium customers up the price curve with moderately higher prices”
  • “Establish higher price bands based on new features while tapping into lower-end markets with older devices”

On the last earnings call, Apple CEO Tim Cook also reported iPhone sales have seen a 1% decline.

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  • johnnygoodface

    Be carefull Apple, I’m an Apple Sheep, but I won’t baa for ever!

  • KBlazer07

    Same boat as you. Didn’t buy this year (replaced battery instead). Considering Samsung and an Alexa run smart speaker instead of what Apple is offering, we’ll see what 2018 has in store for us.

  • Olivier

    Would be dumb of them to raise the price of a phone that isn’t selling so well. I suspect they would most likely drop it about a 100$.

    iPhone 6’1 LCD : 749$
    iPhone XX : 899$
    iPhone XX Plus : 999$

    They could even drop it further. They first launched the X at 999$ so just by dropping it 100-150$ people will jump on it thinking they are « getting a deal »

  • BeaveVillage

    Yeah, the prices are going to get lower, not higher. That’s what you do when things haven’t been selling as well as you thought.

  • KBlazer07

    Anybody else get the feeling that Apple loyalty is starting to drop. I’ve never considered jumping ship, but the last year or so, everything they do seems to have me thinking otherwise. The price increase is just a few guys opinions, but you figure it’s based on something …

  • GaDgEtMoN

    By increasing the price it makes one believe it is more exclusive because it becomes out of reach for those with less disposable income. This in turn creates a need to want/have for those that feel the need to impress others (usually those with less disposable income). In the end they could potentially sell more. (my 2 cents 🙂 )

  • raslucas

    Ya, you know I’d almost expect them to drop iPhone X, but keep it as a model, and come up with a iPhone X plus at that $999 price point… then put a smaller full screen type phone under it to replace the SE at, Some lesser price than both.

    In a sense, the iPhone X MAY be outperformed by an Android phone sometime in 2019, but right now it’s just so much further… why not just keep it with additional colours?

  • Olivier

    I believe Apple learned with this year releases that they can’t force some prices into peoples throats. The iPhone X was a mild to low success, the iPhone 8 was a bad release (don’t get me wrong I have and love the 8 Plus, but you have to admit the launch was not a success). By reducing the price by a hundred dollar they would be able to sell alot more. Don’t forget most people still sign a contract because they cannot shell out a thousand dollar for a phone. Reducing the cost of the phone makes it easier for people, especially those with contracts and those who doN’t need the best and greatest, to pay a small fee in order to get the X.

  • makeittalk

    I bought NOTHING from Apple in 2017 and likely won’t in 2018 either. Am absolutely and completely off the constant upgrade treadmill and that feels good. Still prefer the ecosystem but I now only buy what I (with emphasis) need and not what Apple says I need.

  • I didn’t purchase anything from Apple in 2017 and won’t in 2018 either. Am totally off the steady redesign treadmill and that can rest easy. Still incline toward the biological system yet I now just purchase what I (with accentuation) require and not what Apple says I require.

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