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Yet services would be better if units sold gets increased. So cheaper models are a must. So it's so far an excellent strategy milking the high end keeping the u

• howlingfantods 8y ago
  Services might be better, but I suspect that budget conscious consumers would also spend less on services, compared to customers willing to spend $1200 on an iPhone XS. I imagine their FP&A team has done pretty thorough analysis that the extra sales from fewer products at higher margins will offset the incremental increase in revenue from more (potentially lower value) services subscribers.
• decasteve 8y ago
  This is also true if people keep their devices longer — which seems to be the case from what I’ve been seeing. The low end now seems to be previous generations phones like 7/8.
• bunderbunder 8y ago
  > Yet services would be better if units sold gets increased. I'm not sure that follows. Apple's a very different company in many ways. Notably, by being dominant in a relatively deep-pocketed userbase, they don't need to worry about the "our profit margin is near zero and likely to shrink further so we have to grow just to stay alive" red queen's race that so many other tech companies find themselves in.
• antaviana 8y ago
  I think that making it more durable, not cheaper, aligns better with the services strategy. More durable means fewer opportunity windows for competitors.