iPhone X $999 Price Influence Might Lead to Future Flagship Devices Accompanied by Ludicrous Pricing
Industry leaders can sometimes set the wrong trends and even though some of them were sceptical about iPhone X’s success because of its hefty price tag, Apple has proven them wrong. This had led to other smartphone manufacturers introducing pricier handsets as well.
Analysts Believe That Future iPhone Models Might Go Upwards of $1,200 and Customers Will Not Mind Paying for Such Phones
When it was revealed that the iPhone X would retail for $999, industry watchers thought that people will buy the iPhone 8 and iPhone 8 Plus instead due to their similarities in the hardware specifications department. However, Apple CEO Tim Cook revealed last month that the iPhone X has been the top-selling Apple device since its release in November. Apple has proven that customers can be lured into paying high prices and the upcoming iPhone lineup will echo this strategy.
Other manufacturers such as Huawei, Samsung and OnePlus have followed suit by increasing the prices of their flagship offerings. Increasing cost of components, tariffs, and carrier incentives have also driven the prices up. Companies are increasingly using more sophisticated and pricier components in their devices. For instance, the addition of 3D depth sensing cameras and more lenses drive up the cost of premium devices. Additionally, improving the aesthetics also comes at a cost and includes materials such as glass, ceramic, and aluminium, and these components do not come cheap at all.
However, the price hike cannot entirely be attributed to the cost of components and materials. Apple has apparently made a strategic decision to raise the price of their flagship iPhone to generate more revenue. Other brands are also applying a premium margin to their high-end devices as they end up being status symbols for customers. Some analysts believe that this year’s iPhone X may start at $1,200 and history might repeat itself when it comes to the success of the iPhone X.
Even though the price seems outrageous, a lot of customers don’t pay it upfront and buy phones on monthly instalments instead, especially in the U.S. This way, the cost is spread out over a two-year period and that’s why the high price is not always a determinant when it comes to purchasing a phone.