The analysts believe that "once Apple establishes a price band it typically keeps it, consistent with what we've heard from former Apple employees." They note that over the last few years Apple has successfully persuaded customers to increase what they pay from an average of around $600 to nearly $800.
Apple is said to be using a three-pronged strategy to increase prices while offering cheaper devices for first time customers.
● "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"
So while Apple could offer an even more expensive iPhone X, the price of the entry level iPhone SE could fall to as low as $300.
Milunovich and Wilson suggest that the flagship iPhone X could start at $1100.
Take a look at the chart below for more details...