Analyst: Apple’s iPhone X price could be hard for people to justify

“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.

SEE ALSO:
Morgan Stanley: iPhone supercyle is for real, Apple Watch demand second to none – October 13, 2017

28 Comments

  1. 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?

    1. 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.

      1. 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.

        1. 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.

  2. 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.”

    1. 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.

  3. “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.

  4. 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.

  5. 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.

  6. 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.)

    1. 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.

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