“How?” one might ask. According to a new Nikkei Asian Review interview with the Apple CEO, it’s because they’re such multi-functional devices — which allow us to own one single gadget in place of many. And that’s worth the cash.
“We want to serve everyone,” Cook said. “We understand that there is a wide range of what customers are looking for and a wide range of prices that people will pay.”
The brand-new iPhone XR, for example, was introduced at a cheaper price point so customers who wanted the same advantages and features of the iPhone X lineup, like Face ID and an edge-to-edge screen, could have them on a lower-cost smartphone.
On the other hand, the iPhone XS Max, Apple’s largest iPhone ever, is perfect for those customers who loved the iPhone X’s features but wanted them in a larger form factor.
“We always thought…that if you provide a lot of innovation and a lot of value, there is a segment of people who are willing to pay for it,” Cook said in regards to the iPhone XS Max. “For us, it’s a large enough group of people that we can make a reasonable business out of it.”
Cook does acknowledge, however, that not everyone can afford these prices, which is why his company has been dividing the iPhone lineup into different price points since he began his tenure at the Cupertino company.
Discussing the iPhone in general, Cook says that, “The role of the iPhone has become much larger in people’s lives,” and that will justify the price of the devices for many customers.