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Many analysts thought higher average selling prices were possible because of demand inelasticity at the forerunner iPhone. Service revenues would get boosted b
by diminish 8y ago
Many analysts thought higher average selling prices were possible because of demand inelasticity at the forerunner iPhone.
Service revenues would get boosted by lower prices if units sold increase.
Cook is doing a fine balance of prices, sales, services. Very successful so far. Yet I'm afraid the only way is down from here.
- homarp 8y agoYou write that it can only goes down, but at the same time you hint that a lower priced devices would boost service revenues. So isn't the next step a "cheaper" iphone ? (or a better second hand market 'certified by' Apple)
- diminish 8y agoYes I think so. Apple Management had better data and tools to make the fine decision. Fact is that smartphone market saturates.
- tguedes 8y agoWhy down? If iPhone sales remain stable, which they should, iPhone customers are extremely loyal; as long as they continue to grow in their Other and Services category, there will be a lot of growth for the company. Plus whatever device that comes out for AR will be interesting. Apple still continues to understand strategy and the technology landscape better than any other company.
- cm2187 8y agoYou think customers are going to spend more than their rent into their smartphone?
- empthought 8y agoIf they didn't, they wouldn't be customers.
- ryanwaggoner 8y agoWe’re a very long way from that. Do I think customers will continue to buy a smartphone every couple years AND also pay $20-30 per month for various services like music, tv shows, software, etc? Yep.