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Just FWIW, Anandtech didn't use "affordable" they used "lower-cost alternative" which is quite true. But more to the point, the market is going to need some wa
by xoa 8y ago
Just FWIW, Anandtech didn't use "affordable" they used "lower-cost alternative" which is quite true.
But more to the point, the market is going to need some way to internalize business models here. Fundamentally, Apple's only guaranteed source of revenue right now for any given phone is the price of the phone itself. Maybe users get some apps too, maybe they get services, but at this stage in lifecycle of the devices a lot of people are happy with the apps they have and paid updates are infrequent, and it's an important point that the iPhone doesn't depend on subscriptions nor is Apple dependent on selling you. So the sticker price must to some extent encompass most of the life cycle of the phone, including 5-6+ years worth of OS updates (iOS 12 supports the iPhone 5S, released in 2014).
How much is it worth to have a cutting edge device where retail embodies 100% of the required costs, and the manufacturers financial incentives are reasonably well aligned with that of the owner? Can the market actually handle this vs devices where many of the costs are hidden/externalized? It's going to be an interesting question over the next few years. There has been a certain amount of pushback on the XS/XS Max pricing, but at the same time a lot of people at least claim to care about incentive alignment. It's hard to say exactly how that will play out if Apple finds upfront pricing is too hard for many to swallow even if per-month or similar personal info selling would be.