People Will Still Pay a Huge Premium for Expensive iPhones, Says Loup Ventures Managing Partner
A testament to the successful formula that Apple uses is pricing a phone at $999 and still being able to sell it. What analysts and naysayers continued to prattle about the demise of the iPhone X quickly turned to silence after Apple announced its Q2 2018 earnings, which revealed that the bezel-less flagship was the most popular smartphone of that particular quarter, selling a total of 16 million units.
With the doubts all washed away, it appears that industry watchers might have changed their stance on the upcoming iPhone 2018 series, which is expected to feature a humongous model with a 6.4 or 6.5-inch display. According to Loup Ventures Managing Partner Gene Muster, customers are still willing to pay a hefty amount for these iPhones.
Muster Also Believes That the Entrance of Xiaomi in the U.S. Will Threaten Apple’s Future iPhones
Speaking to Bloomberg, Muster says the following regarding the consumer behavior for the upcoming iPhones.
“Consumers are valuing their phones are lot more and they are willing to pay for that.”
He also says that people have an extended level of options when it comes to buying several different iPhones. For example, this year, we will get three brand new models, but the three devices announced last year will be discounted as well. The iPhone 7 and iPhone 7 Plus might be discontinued, but the iPhone 6s and iPhone 6s Plus might receive a further price cut, transforming them into desirable handsets from a price/performance perspective.
Tim Cook also states that he is not worried about the $999 price of the iPhone X and also called it a Super Bowl Winner; claiming the device has a 99 percent customer satisfaction rating. Muster does state that if and when Xiaomi enters the U.S., it will take a percentage of the market away from Apple, but not to the extent where the iPhone growth slows down.
This year, Apple plans on releasing the iPhone X Plus, the iPhone X successor and the iPhone 9, which is expected to feature an LCD model but sport the same ‘edge to edge’ glass.
Do you agree with Muster’s analysis? Tell us down in the comments.
News Source: Bloomberg