Apple Could Increase the Price of the Flagship iPhone This Year [Analyst]

Apple Could Increase the Price of the Flagship iPhone This Year [Analyst]

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Apple could increase the price of the iPhone X this year when it introduces a new model, according to a report from UBS analysts Steven Milunovich and Benjamin Wilson via Business Insider.

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...

[via BI]

Apple Could Increase the Price of the Flagship iPhone This Year [Analyst]

imfckingrich - April 15, 2018 at 2:28pm
keep raising the price. i'll keep rocking my current iPhone. tbh, phones are getting boring.
4 leaf clover - April 15, 2018 at 5:21am
Will they make it in the USA, that is the cost of premium heath insurance , disability, and insurance expenses. 20-30% higher then anyone else. Why they profitable , why everyone else charges tariffs on everything else. Low wages and cheap manufacturing cost is ultimately paid by the the the us. Subsidy for the world
4 leaf clover - April 15, 2018 at 5:19am
They keep 300 billion to buy all the manufacturers that make the products, try and corner the market it appears on all the parts. To control the supply chain. Thus blocking third parties it appears. Have to keep the quality standard high.
Khoi - April 15, 2018 at 3:26am
Business marketing strategy. Rise the next one price so people can feel the iPhone X is cheaper then buy it. Oh and by then our iPhone 7 should be slower so we gonna need an upgrade and feel the iPhone X is cheap
PaulieP - April 15, 2018 at 2:29am
Love my Samsung since dropping the iPhone. Not giving Apple another penny.
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