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> I think Apple is finding out the hard way that increasing prices means lower volumes IMHO this is getting the causation backwards. I think Apple saw the st
by photojosh 8y ago
> I think Apple is finding out the hard way that increasing prices means lower volumes
IMHO this is getting the causation backwards.
I think Apple saw the stagnation in unit sales happening anyway as people no longer see newer features and tech improvements as 'must-haves' and are keeping their phones for longer for that reason. As opposed to people keeping their phones longer because new ones cost too much.
This is surely part of the reasoning behind their open pivot to an emphasis on devices lasting longer and optimising iOS for older devices, ie they know people are keeping their devices longer, therefore they're marketing: if you want a phone to last longer then Apple is the vendor for you.
Of course to maintain profit levels they have to take the gamble that people then are prepared to pay more initially for a phone. Hence the differentiation between the Xr (new 'regular' model) and the Xs premium models. And the increase in ASP during 2018 due to the introduction of the X at the high end would have shown the gamble to be the right one.
- dwaite 8y agoThat is my speculation as well. Once certain demographics consider their phones to be "good enough", they are going to use them until they break or apps stop working. Apple wants such people to feel to feel comfortable spending more money once they do upgrade their phone. A percentage of this higher cost is put into newer, more expensive hardware; this allows Apple to focus on differentiating technology on the higher end models (edge to edge retina screens! stupid-good cameras! no home button! facial recognition! you can video conference with your coworkers looking like animated poop!)