Tim Cook on the Sustainability of the iPhone X's $1000 Price Point

Tim Cook on the Sustainability of the iPhone X's $1000 Price Point

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Apple CEO Tim Cook was asked to comment on the sustainability of the iPhone X's $1000 price point during the company's Q2 FY18 earnings call today.

Shannon Cross, from Cross Research, asked Cook to comment on the price of Apple's flagship device.

"Now that we're a couple of quarters out from the launch of the iPhone X, you know, given the thousand-dollar price point — and it's clearly selling — but there's been a lot of questions in the market about sustainability of that price point and how you're thinking about it, you know, as you go, you know, look out sort of holistically across your lineup. So if you could talk a bit about what you're hearing from your customers on that and then I have a follow up."

Here is Cook's reply:

Shannon, it's Tim. As Luca mentioned earlier, our revenues are up 14% year over year on iPhone and that's a combination of single digit unit growth and ASP growth that is mainly driven by iPhone X. I think that our iPhone line shows that there's a variety of different customer in a market that is as large as a smartphone market. And so we're going to continue to provide different iPhones for folks to meet their needs.

On iPhone X specifically, I think it's important to maybe emphasize again one of the things I mentioned in my opening comments, that customers chose iPhone X more than any other iPhone each and every week in the March quarter just as they did following its launch in the December quarter. Also, since we split the line with the launch of iPhone 6 and 6 Plus back in 2014, this is the first cycle that we've ever had where the top of the line iPhone model has also been the most popular. And so with the customer sat that Luca referenced as well, the 99%, the iPhone X is a beloved product. And so I think, you know, it's one of those things where like a team wins the Super Bowl — maybe you want them to win by a few more points, but it's a Super Bowl winner and that's how we feel about it. I could not be prouder of the product.

Click here to listen to Apple's Q2 FY18 earnings call or click here for a transcript.

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Tim Cook on the Sustainability of the iPhone X's $1000 Price Point