Are you ready for Apple’s $1,200 iPhone?

“Back in February, I discussed the possibility of Apple’s upcoming iPhone 8 topping a $1,000 price in the US,” Bill Maurer writes for Seeking Alpha. “Since we already saw a price raise with the 7 Plus, and this new phone is supposed to be an even higher end device, it seemed logical that a higher end storage model of the 8 could easily price into the four digits. Today, one Apple watcher and developer argued that the 8 could start at nearly $1,200, which I think would be a tremendous mistake for the company as it looks to gain market share.”

“It’s been widely discussed that Apple is moving to an OLED display, although the timing depends on who you ask. It appears that the highest end device to be launched later this year will feature OLED panels, but the supply of this key device part has been questioned. Apple watcher John Gruber recently stated that the company may have trouble making 40 million of these OLED devices a quarter, which will send the smartphone’s price soaring,” Maurer writes. “Here’s part of his piece: ‘If Apple really is facing supply constraints due to new OLED panels and possible troubles with a new fingerprint reader, then he thinks that Apple will start the iPhone 8 at $1,199 with 64GB or storage, or even as much as $1,249. A 256GB model would start at $1,299 or as much as $1,399.'”

“That would certainly provide a level of differentiation that I discussed in my prior Apple article, between the likely new 7s, 7s Plus, and 8,” Maurer writes. “However, I think it would really push a number of consumers away, because even on a 24-month installment plan you’re talking about $50 a month just for the phone, not counting your calling/text/data plan”

Read more in the full article here.

MacDailyNews Take: The “iPhone 8” (or “iPhone X” or “iPhone Pro”) will be Apple’s flagship, premium, cutting-edge iPhone. It should be priced as such.

Customers who are looking for lower prices can simply opt for iPhone 7s or iPhone 7s Plus or even the iPhone 7 or iPhone 7 Plus, which are likely to stick around as the entry-level models through late 2018, just as the 6s and 6s Plus are today, or get the iPhone SE, of course.

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.

And when did Apple say they were looking to “gain market share” in the smartphone market overall?

(Yes, in places like India they are looking to sell more iPhones, but Apple simply doesn’t worship at the Church of Market Share. They’re in – and winning handily – a totally different race.)

SEE ALSO:
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

39 Comments

    1. Oh me too! I just couldn’t buy Angela and Jony’s Edition watches fast enough either. /S

      Apple needs to do something new and better if it wants to justify increasing prices. I don’t think a Samsung screen or a Samsung chipset or another supposedly more capable bulging camera with compromised optics are game changers offering better value to most users. Actually, many users I know detest the loss of headphone jack last year and are wondering what Apple is going to remove this year. Timid Tim doesn’t inspire much confidence.

      1. So, what does that make Steve?

        Killed:
        Floppy drive
        SCSI port
        Parallel port
        Serial port
        CRT displays
        FireWire
        Physical phone keyboards
        Flash
        30-pin connector
        SD card slot
        Optical drive

        But, yeah, “Trim Tim.” 🙄 If you think Jobs wasnt part of killing off the headphone port, you’re as stupid as you come off.

  1. By raising the prices, they risk losing longtime customers who have bought previous iterations of the iPhone but who can’t absorb a four figure price tag for a phone. The key to maintaining business is building repeat customers, and a sharp price increase runs the risk of hampering that.

      1. It seems the 10 year old Steve Ballmer “$500 phone! You gotta be kidding!” argument is alive and kicking in whinger_land_2017.
        iPhone 8 or whatever it’s called will be $1199 for the base model minimum. 10 years and inflation makes that a cert.

      2. Your right, but would you buy the same model twice? Perhaps I’m to hard on my phone, but I’ve barely been able to keep a phone alive for two years. So, yes my wife and I have been on the every other model cycle. If they go that high of a price, they will definitely be losing two customers. Sorry, love Apple products, one of the best things I’ve done was switching to a MacBook Pro back in 2006. But if I’m forced to choose staying with Apple or keeping a house over my family’s head, BYE APPLE!!!!

    1. “By raising the prices, they risk losing longtime customers who have bought previous iterations of the iPhone but who can’t absorb a four figure price tag for a phone. The key to maintaining business is building repeat customers, and a sharp price increase runs the risk of hampering that.”

      Bullcrap. On a two year contract (the way the majority purchase their iPhone) a $1200 iPhone increases the monthly payment by less than $17, or about the cost of 3 packs of cigarettes per month.

      With carrier plans coming down like they are, its quite likely that today’s iPhone with plan won’t cost much different from a few years ago.

      A $1200 price tag isn’t going to have any negative impact on iPhone sales.

      1. I agree. Please remember that Apple is an aspirational brand.

        To a certain degree, the more they charge, the more I want one.

        I always buy the top of the line model when it comes to my iPhone. Why mess around?

        Just my 2 cents.

    2. YEAH! Just like all those car makers risked losing longtime customers when they introduced higher end models to their line up. Stupid, BMW. If they had just kept making the 2002 they might have done ok. But, NOOO, they had to go make a 1, 2, 3, 4, 5, 6, 7, and 8-series. Killed the whole company. NOBODY drives a Bimmer anymore.

    3. It seems most people are reading the headlines as being the entry level price expectations, and for the most part, the articles are about the possible cost of the highest end unit. Which is something of a disservice to anyone who does not need, or want, all of the shiny bells & whistles-whatever they turn out to be.

  2. While I agree that $1200 is not too much, I would not be surprised if Apple did something quite different this year. I could see them pricing the iPhone Pro at about $1000 (or perhaps $1200), and lowering the price of the 7S and 7S plus by $100 (from the 7), while discontinuing the 7. This would provide a brand new model at a cheaper price, thus driving demand for the 7S. They would not need a 7. Only the SE ($399), 7S ($549), 7S plus ($649), and Pro would be offered. This would soften the sting of the higher priced phone and simplify the iPhone line. They would actually have one less phone to deal with. They would make up the margin on the $99 conductive charging accessory used by all the new phones.

  3. This article is just speculation until Apple launches the product. But even if these price predictions are true, the iPhone still packs an incredible amount of value in its huge range of functionality, saving me many hundreds if not thousands of dollars in money I would spend on other devices to get what the iPhone brings me.

  4. I’m very happy if the new top-of-the-line iPhone cost more than $1000. Personally, I would get the 7S. I’m not that much into my iPhone, our use the iPad much, much more.

  5. Preferences in order:
    Desktop Mac (Mac Pro Workstation, Mac mini)
    Laptop Mac (MacBook Pro Retina)
    iPad (iPad Pro 12.9″ with LTE)
    iPhone (iPhone 7)

    No, I am not ready or desiring a $1200 phone.

  6. My gut reaction to a $1,200.00 iPhone as it is nothing other than the Twentieth Anniversary Macintosh (TAM) version 2.0.

    It will likely sell just as well too (all sarcasm intended).

  7. Steve Jobs in 1995……

    “What ruined Apple wasn’t growth … They got very greedy. Instead of following the original trajectory of the original vision, which was to make the thing an appliance and get this out there to as many people as possible, they went for profits. They made outlandish profits for about four years… What that cost them was their future. What they should have been doing is making rational profits and going for market share.”

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