“Apple Inc. proved one thing this year: It can charge whatever it wants for iPhones,” Shira Ovide writes for Bloomberg. “Mark Gurman and Debby Wu of Bloomberg News revealed more details of Apple’s planned makeover for its fall 2018 iPhone models. There will be an updated version of the 2017 iPhone X; a higher-end, larger-screen edition of the iPhone X, presumably with an even higher-end price; and an iPhone X-like model with some more basic parts that will serve as the entry level model in Apple’s 2018 lineup.”

“Apple has never done well selling the “good” phones in its lineup. That has hardly mattered because the more entry-level models effectively serve another duty: They push people to the more expensive versions that Apple increasingly relies on for its sales growth,” Ovide writes. “The average iPhone sale price rose to $758 in the nine months ended June 30 compared with $661 at the same point in 2017. That is testament to demand for the $1,000-and-up Phone X, which Apple says has been the top-selling iPhone model since it went on sale.”

“Both for its original computer business and later with the iPhones, Apple’s approach has never been volume sales. Instead, Mac and iPhone have held minority shares of their markets, but their premium prices have given Apple the majority of profits in both computers and smartphones,” Ovide writes. “Apple’s price-over-volume strategy has helped it become the most valuable public company in the world.”

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MacDailyNews Take: Yup.

Newsflash: Apple sells premium products at premium prices to premium customers.SteveJack, MacDailyNews, October 23, 2012