How much will the new iPhone cost?

“The answer, regardless of when you ask, is: The same as the current iPhone,” Horace Dediu writes for asymco.

“Of course, this is the answer to the question of what will the average new iPhone cost,” Dediu writes. “The average selling price (which combines the revenues and the volumes of all units sold and is reported every quarter) has not varied very much since early 2008. To the degree that there is variance (between $600 and $700) is due mostly seasonality and reflects a mix toward more expensive units during the launch quarters and a cheaper mix during later periods when the product is due for an update.”

“Every year a new iPhone is launched which replaces the one launched the year before. The older product is still offered at a reduced price,” Dediu writes. “Price brackets are very firm and set at fixed intervals about $100 apart… The ‘floor’ of the range is a consistent $400 while the “ceiling” has expanded from $700 to about $950. This year’s ceiling is due for the fourth leg up and if the pattern persists, we should expect it to reach $1100.”

Read more in the full article here.

MacDailyNews Take: As we wrote back in February: Our Jet Black 256GB iPhone 7 Plus units with 3 GB RAM each cost $969 plus tax, so $1,000+ for a loaded “iPhone X” with 4+ GB of RAM would certainly not be surprising.

SEE ALSO:
Get ready for Apple’s $1,400 iPhone – July 18, 2017
Apple took 83% of smartphone market profits in calendar first quarter – May 16, 2017
Apple’s Tenth Anniversary iPhone will likely cost more than $1,000, source says – February 8, 2017
Goldman: Apple’s next iPhone will break the $1,000 barrier and send the stock soaring – May 12, 2017

4 Comments

  1. let’s not forget the Apple Tax in Australia where we enjoy a 20%+ premium above and beyond currency exchange rates and sales tax/GST. We can’t do much about exchange rates and sales taxes/GST, but the premium on Apple products in Australia is indefensible (except by Apple)

  2. The iPhone will cost more than the whining consumer crybabies say it’s worth but not high enough to satisfy the moaning, greedy big investors of Wall Street who will complain the iPhone’s ASP isn’t quite high enough. Apple will end up between the usual rock and a hard place and shareholders will likely have to look at another quarter gone down the tubes in terms of share price gains.

    I wonder if the people interested in automobiles sit around moaning and groaning about whether Porsche is going to raise the price of a new 911 Carrera and ponder whether it will be worth it. Even though I’d like one but I can’t afford one, I’m certainly not moaning about how much Porsche charges for one. A Porsche Carrera costs what it costs and that’s all there is to it. What’s there to question about Porsche’s reasons? Every year, Porsche sells all the Carreras they make. They set their prices and it’s up to the consumer to decide to buy it or not. Why isn’t Apple seen in that way?

    1. But half the populations in the US, some parts of Europe, Australia, Japan, etc. don’t own expensive Porsches.

      $1000+ for a “phone” is A LOT of money for many people, including many iPhone owners. This means some users won’t buy that model. Some of these people might get the iPhone 7s, but many others will refuse to “downgrade” and not get the 4-year-old design.

      My guess is upgrade times will elongate further to maybe 3.5 years. Apple will be very lucky to match fiscal 2016 iPhone sales, unless there is some unbelievable feature yet to be discovered.

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