“Barclays analyst Mark Moskowitz predicts that discussion of production delays for the new $999 iPhone will trail off by the spring quarter of next year, ‘setting the stage’ for the company to sell a greater mix of its more expensive phones and boost its profits in the process,” Emily Bary writes for Barron’s.
“He sees earnings per share of $11.58 and revenue of $270 billion for the 2018 calendar year,” Bary writes. “The trade-off, of course, is a less exciting holiday quarter this year, while Apple continues to work out its production issues.”
“Those expecting the iPhone X to have a similar effect as the iPhone 6 did might be disappointed, however, according to Moskowitz,” Bary writes. “Moskowitz argues that while the features of the iPhone X are ‘cool,’ the phone’s base model will be priced at a 369% premium to others in smartphone land, which could be hard for people to justify.”
Read more in the full article here.
MacDailyNews Take: Poppycock.
Even if they had set the price higher, Apple will sell as many iPhone X units as they can possibly get assembled.
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Morgan Stanley: iPhone supercyle is for real, Apple Watch demand second to none – October 13, 2017
Samsung’s MSRP for a Galaxy Note 8 is $930. Does anybody really think that $69 is an absurd “Apple Tax” for a device that actually works, fits into the Apple ecosystem, allows existing iPhone owners to keep their investment in apps, and doesn’t burst into flames?
On the other hand it may be good to keep in mind how many Galaxy Note devices of a given generation sold in comparison to the other Galaxy devices of the same generation.
Better to “keep in mind how many Galaxy Note devices of a given generation sold in comparison” to iPhones.
Priced virtually the same iPhone trounces Galaxy Note unit sales.
My point was that the iPhone 8 series has been touted by some to be the ‘decoy’ to push sales of iPhone X. My comment was to point out that devices released close in time in the flagship Galaxy series tend to favor the ‘2nd-highest’ priced device(s), not as a comparison of sales between Galaxy and iPhone.
iPhone X
after 10 years idiots are still saying the same stupidities…
Microsoft Ballmer at the start “There’s no chance that the iPhone is going to get any significant market share. No chance. It’s a $500 subsidized item. ”
10 years later , Sept 2017 Foxnews interview: Bill Gates : “I switched my phone to an Android… ”
but maybe he should listen to:
Eric Schmidt on CNBC 2016 : “I have an iPhone”
CNBC : “In March on a trip to South Korea, Schmidt was caught taking pictures with an iPhone. But now he has openly admitted that he uses the device.”
10 years ago Internet-connected phones weren’t a commodity. When items become a commodity, the price necessarily drops. Apple is trying to buck basic economic principles. They may have limited success but I don’t see the long-term prospects of this working out.
The kicker is that Apple has most of its eggs in the iPhone basket (e.g. the Mac line is FUBAR). If Apple ends up driving people away from iPhones, they will really be putting the hurt on themselves.
“Analyst: Apple’s iPhone X price could be hard for people to justify”
There has, is, and always will be people who cannot justify the price of product x, y, or z. So what? Apple will sell all they can make.
Does Apple sell all the Mac Pros it can make?
I’m not sure they sell any these days.
People don’t want overpriced hardware.
Ignore the noise. These analysts are mostly guessing. I believe if a person is going to keep the iPhone X for at least a couple of years, I would think the price could be justified. The economy seems to be doing well, so I don’t think consumers are holding up purchases. Personally, I don’t have a clue how many consumers will be buying iPhone X models, but I suppose Apple must have a clue. Apple will sell what it can sell and that’s all there is to it. I don’t see the constant need for analysts to make predictions when many times they’re wrong. I can only hope for the best in terms of iPhone sales. I’m not going to lose any sleep over it.
“Poppycock.”
Enough said.
I always choose value over price when I purchase a hand-held computer with a phone in it. My experience has been that I get much more value from my iPhones than any other brand offers.
Price is a component of value, you silly goose.
V=(Q+S)-P
value = (quality + service/support and other intangibles) – price
I paid a $1,000 AUD for an iPhone 5 back when and will upgrade to the X in November for a paltry $1.829 AUD. I just want one. 🙂
Moskovitz has a long history of being wrong and stupid regarding Apple.
At least he is consistent.
That’s why Apple also has the Phone 8, 7S, SE. Every price range that is profitable.
I’ve updated every year for 10 years. Right now I have a 7Plus. For the first time I’m seriously considering holding on to the phone for another year and not upgrading. A grand is a lot for a bit more screen and a bit better camera. (The fancy photo effects in the 8 & X were kind of lame when I fiddled with them in the Apple store lately.)
The jump to any of the “S” models was far more modest than what we’re seeing with the X. For me the biggest thing is the smaller form factor with essentially the Plus-sized screen, which is also the superior OLED. If I was in your position I would probably hold off too, but going from a 6 plus to an X seems like a leap I’ll take.
I have had every single model of the iPhone except the 5C and SE (went to the 6, 6S Plus and 7 Plus and not the smaller 6 and 7). However, I am skipping this upgrade cycle. I feel the 8 does not offer any significant benefit to me over my 7 Plus. I also think $1000 for a phone is insane and no way I am going there. It is not a money issue; I could easily buy it today.
Apple now seems to take the customers for granted. I think Apple has gotten more arrogant than ever, spewing politics completely contrary to my (and huge numbers of other Americans) beliefs. Apple thinks they can unload any slab of metal (or glass), emboss an Apple on it, force us to endure delays (both real ones and artificial) and us bots will open the wallet unconditionally. NOT ANYMORE! Gone are the days when I just automatically buy the latest “magical” must-have” iPhone because the “magic” is no longer there for me.
Interesting take. But for every one of you, there are 10 others that don’t really care about the politics, delays, etc. Because the minute they have the X in their hands, all is forgotten (forgiven?)
The price is fine. I would have bought it even if it were $1500. Who cares. Plus: the higher the price, hopefully the easier it is to get one on launch day. In fact I think Apple should have that form of pricing structure, where the price is higher during the launch due to supply and demand, then intentionally lower the price 2 months later. Even if they announce the pricing plan in advance, it will allow people who don’t care about price to buy one without having to wake up in the middle of the night and struggle to get my order in within seconds. It will also discourage people from buying just to resell on eBay.
People aren’t rational. They’re not choosing between $1,000 and $700. They’re choosing between $35/ month and $50/ month. All lot of people will be giving up 3 cups of coffee per month to have the latest and greatest, and most won’t even give up the coffee.
A most excellent post. Right on the button of what is going to happen. Besides, most buyers of iPhone X already have an iPhone. Proceeds from the sales of existing iPhones WILL lower the acquisition cost of the X.
It will sell like hot cakes. Most people don’t ‘justify’ these types of purchases anymore. They want, and can afford, so they get, driven by instant gratification and the next, best thing.
Oh and another thing…..People who buy Apple understand the TCO.
S-o-l-d-o-u-t is what you are going to be hearing the first week. The shorts can sing this all they want. But, it’s going to sell like crack on the corner.
So I was at a dinner party tonight. All patrons were iPhone users, but most had no idea what an iPhone X was. They thought the iPhone 8 was the latest iPhone from Apple, and never heard of the X.
I explained what the X was, said the price for the X started at $1000 or basically $300 more than the 8 price, and they scoffed.
So, not only might the price be an issue, but product X brand recognition might be a problem as well. The average consumer doesn’t follow tech religiously and there will be some 8 and X confusion, especially for the people conditioned to believe the new iPhone goes on sale in the month of September.
Additionally, can you imagine the reactions consumers whom purchased an 8 are going to experience when the X TV ads start rolling out? It’s not going to be pretty. Some will feel slighted because they thought they had the latest, and others will be embarrassed not knowing the X existed before their 8 purchase. Lol, I don’t envy customer service or sales and marketing. It’s a tough nut.
nobody will buy a phone without a physical keyboard.
which is it? they will be backordered until March 2018 or they are priced too high
Like my new Apple Series 3 Watch with LTE. Was not impressed with the next generation of iPhones.
At $1,000, I will remain unimpressed. For a grand it had better sweep the floors, do dishes, take out the trash, cut the grass, rake leaves and clean the toilets.