“While the rest of the world speculates about upcoming changes to Apple’s product line — a smartwatch? a giant iPad? — southern Europe agonizes about a different kind of leak,” Leonid Bershidsky writes for Bloomberg View. “An employee of the Spanish telecoms company Telefonica has reported that Apple is planning to sell its new, large-screen iPhones for 950 euros ($1,253) apiece. That’s the rumored price for the mammoth 5.5-inch screen version. In Italy, it may even reach 980 euros. The 4.7-inch model may be offered for 750 euros.”
“If true, Apple is upping the stakes in its bid to remain the most profitable producer in what is now a commodity market,” Bershidsky writes. “As long as the Cupertino company is able to sell millions of devices at prices that reflect nothing but the brand’s cachet, it doesn’t have to care about its shrinking market share: it will continue to skim the cream while rivals sweat every dollar.”
“The strategy has worked so far. Two weeks before its next iPhone announcement, Apple still sells an unlocked, unsubsidized iPhone 5s for a minimum of $649,” Bershidsky writes. “I am convinced its products are cult objects made in heaven as far as its fans are concerned… Apple would be stupid not to use this incredible — and, after three years without a truly innovative product, inexplicable — competitive advantage. Its devotees will believe anything… The Apple cultists know they’re paying premium prices, and they love it… The brand’s loyalists want Apple to reap its rewards and enjoy profit leadership: Somewhat illogically, it reinforces their belief that they’re doing the right thing by overpaying.”
“Meanwhile, for consumers seeking functionality — and who, with the latest Android software, need no longer compromise on the user experience — Apple’s handsets make less and less sense,” Bershidsky lies.
Full article – laced with more clueless Apple cultist B.S., Think Before You Click™ – here.
MacDailyNews Take: This idiot claims hundreds of millions of people buy iPhones because they’re “Apple cultists.” This moron bases his fantasy on specs: Samsung has more megapixels in their smartphone, so they must be better. Bershidsky is your typical dime-a-dozen, mouth-breathing fragmandroid cretin.
Android settlers compromise on user experience in myriad ways: Continuity (of software, devices, interactivity between devices, and UI and hardware design), security, morality (supporting IP thieves), access to the latest and best versions of apps, etc.
This fool Bershidsky also doesn’t grasp that when we buy an iPhone, we’re buying much more than just smartphone hardware. With our purchase, we have access to the richest, most complete, most consistent, most secure, most fun, most beautiful, and most functional ecosystem available – by a wide margin that’s only increasing. iPhone resale values are unmatched for a reason, Lenny. It’s about much more than hardware margins. A single Apple customer is worth more than 10 Android settlers (at least) because, among other fine traits, they have disposable income and the proven will to spend it. Because Apple customers are smarter and richer, they have incomparable value; they are not cheapskates scrounging around for BOGOF phones and willing to settle for inferior app versions as long as they’re free. They love the word “free” – regardless of how much they pay for it in the end.
When Apple sells an iPhone, it’s like an IQ test. A filter. A skimmer. Apple skims the cream and leaves the rest of the barrel, all the way to the bottom, for the also-ran peddlers of iPhone knockoffs the world over. Apple doesn’t want the kinds of users who can’t even grasp Total Cost of Ownership or iPhone’s simple value proposition. Apple wants quality users who understand that we’re not just buying a lump of hardware, a collection of parts whose collective value should be the sticker price of the device. iPhone users understand that we’re are getting a lot more for our money than just the world’s best, most thoughtfully designed smartphone. For Jobs’ sake, nearly a year after its release, iPhone 5s users are still the only 64-bit smartphone users on earth!
And, this is not unimportant, iPhone (and iPad, iPod, and Mac owners) willing to reward the company that reinvented the modern smartphone (and tablet, portable media player, and personal computer) instead of inexplicably rewarding copycat intellectual property and trade dress thieves who peddle disjointed, inferior experiences to the ignorant, the skinflints, and/or the deluded like Leonid Bershidsky.
Test proves Apple iPhone users are smarter than those who settle for other handsets – January 2, 2014
Android users poorer, shorter, unhealthier, less educated, far less charitable than Apple iPhone users – November 13, 2013
IDC data shows two thirds of Android’s 81% smartphone share are cheap junk phones – November 13, 2013
IDC: Android worldwide smartphone market share passes 80% – November 12, 2013
Apple Maps makes killer comeback as Google Maps loses access to world’s most desirable mobile customers – November 12, 2013
Android phones 3 times more likely than Apple iPhones to have been bought at discount store – August 22, 2013
CIRP: Apple iPhone users are younger, richer, and better educated than those who settle for Samsung knockoff phones – August 19, 2013
Twitter heat map shows iPhone use by the affluent, Android by the poor – June 20, 2013
Apple’s iPhone generates more in carrier fees than rival smartphones – January 30, 2013
Unsurprisingly, survey says Apple’s iOS is highest priority among mobile developers – January 23, 2013
People buy more Android phone units and do less with them vs. Apple’s revolutionary iPhone – November 14, 2012
Study: iPad users more likely to buy – and buy more – online than traditional PC users – September 29, 2011
iPhone users smarter, richer than Android phone users – August 16, 2011
Yankee Group: Apple iPhone owners shop more, buy more, remain more loyal vs. other device users – July 20, 2010
iPhone owners more likely to pay for digital content – November 26, 2009
Study: Apple iPhone users richer, younger, more productive than other so-called ‘smartphone’ users – June 12, 2009
Apple iPhone users buy many more apps, surf the Web much more than other ‘smartphone’ users – March 27, 2009
And the iPad prior to its introduction was rumored to carry a $999 price point. We all know how that turned out.
The claim that a 5.5″ iPhone will cost up to $1300 has to be bogus. Take a Retina iPad mini with cellular, add the phone circuitry, and cost for a 7.9 inch “iPhone” would be no where near that, even in Europe.
Bershidsky fits Oscar Wilde’s definition of a cynic: a man who knows the price of everything and the value of nothing. And writing for a worthless rag like Bloomberg doesn’t exactly elevate his status.
Most excellent take MDN.
Great MDN comment.
You two trolls are two of a kind, or is it one of a kind. Either way, enjoy your android craptastic phones.
lame article – old school perspective – we buy cuz of quality and attention to detail! not for any cult bull crap. just sold my old 5s for $400 – lets see any other crap plastic phone get that type of resale! Oh that $400 will pay for MY NEW 6 and ill pocket some to boot!
$1300 would be out of my reach. So, that would be the end of that. It’s a bit of a settler for me. If they want more of my money, they have to price it closer to the 4.7 inch phone so I am tempted to spend a little bit more.
We already know how much iPads cost, there is nothing that Apple can produce at 5.5 inches that would justify $1300, unless they start using precious metals. Sapphire isn’t precious, its an industrial material.
My thoughts are, $1300 would be insane, and a clear choice to separate class society, and establish that greed is the focus.
Apple has not been upfront about greed or class society. They charge prices based on sustainability. What they are doing today, is working, so they shouldn’t mess with the program.
This guy is wishful thinking, or is there’s a motivation on his part to mess with Apple.
Diamond has been industrial material much longer than Sapphire has been.
Both Diamonds and Sapphires can be precious and can also be working hard for industry.
What was your point? A fictitious iPhone price?
Yes, it seems unbelievable.
Yes, what MDN said.
“…Apple is upping the stakes in its bid to remain the most profitable producer in what is now a commodity market,” Bershidsky writes.
Translation: ‘Everybody and their aunt-Mary-Sue is making cheap-assed iPhone & iPad knockoffs, so Apple should lower their prices, so I can afford one. Besides, none of the cool kids wanna hang out with someone using an iClone.’
Leonid is lonely.
$1300? Hey, somebody has to pay for Tim Cook’s side projects.
Setting aside the author’s lack of attention to details.
Apple’s product sell at an exchange rate of roughly 1 $/EU $959 for a 5.5″ iPhone 6, 128MB storage is not out of question since iPhone 5s for 64MB right now without contract costs $849.
Not to forget that UK has a Value Add Tax about twice of what we here in US.
Therefore, this is just a lazy writer writing sensational article to catch clicks and get paid for ad views.
I understand your point, products are more expensive in Europe because of tax. However the US does not have a VAT like the UK. The tax on a product is at the time of sale, not throughout manufacturing. Sales tax is a State not a Federal tax. The article is about the Euro not the Pound, that will be a different price.
The part of the story about Apple not having innovation shows how at best the writer is willfully ignorant or at worst keeping his readers stupid. Android can’t talk about TouchID because they can’t come close. The two attempts have been jokes. Or 64bit, that is big for gaming and video. They are desperate because when the big screen advantage goes away people will start to understand just how far behind Android is.
I guess Bershidsky cannot understand that intelligent consumers will in fact pay some of their hard-earned dollars, euros, etc. for the best and most honestly-made products. Sadly, when it comes to being a smart consumer, Bershidsky is Shidsky Outta Luck.
FUD spread through SamDung/ android bribing!! Clearly !
“Buy SamDung… No need to wait for apple.. Its going to be stupid expensive for no good reason ”
Get a life u desperate competition !
Click-based writing is not working out.
Hello Samdung GS5 /s
A $1300 iPhone???? Obviously, Apple is putting out false information to find out where the leaks are.
Do you believe everything you read on the internet Grasshopper? Patience please.
Out of their GD mind to do that bullshit