Apple learns a lucrative lesson

“Last year, Apple introduced a trio of new iPhones. The first two — iPhone 8 and iPhone 8 Plus — were, in effect, upgraded versions of the prior-generation iPhone 7 and iPhone 7 Plus devices,” Ashraf Eassa writes for The Motley Fool. “The third was the iPhone X, a radically redesigned device that was priced at a significant premium to the other iPhones that it launched alongside.”

“The baseline configuration of the iPhone X with 64GB of storage started at $999, while the iPhone 8 and iPhone 8 Plus cost $699 and $799 for the same amount of storage,” Eassa writes. “For that extra money, the iPhone X offered a number of enhancements. The outer shell of the iPhone X was made of stainless steel instead of aluminum, the device used a more advanced organic light emitting diode (OLED) screen instead of tried-and-true liquid crystal displays, it incorporated the company’s 3D sensing TrueDepth camera, and it had a more advanced rear-facing camera.”

“According to CEO Tim Cook on the company’s most recent earnings conference call, the iPhone X has been the company’s ‘top-selling iPhone since the launch.'” So, clearly, there’s a significant number of iPhone buyers out there who were willing to pay top dollar in exchange for Apple’s best iPhone,” Eassa writes. “On Apple’s most recent earnings conference call, CEO Tim Cook had the following to say: ‘And, so, I think in this [product] cycle, we’ve learned that customers want innovative products, and we sort of already knew that in other cycles and other points in time, but it just puts an exclamation point by that I believe with looking at the results.'”

Read more in the full article here.

MacDailyNews Take: This is a lesson Apple learned long ago, but it’s nice to have it confirmed that it works in smartphones, just like it works in personal computers, portable media players, tablets, smartwatches, smart speakers, etc.

Quality is more important than quantity. One home run is much better than two doubles. – Steve Jobs

Newsflash: Apple sells premium products at premium prices to premium customers – October 23, 2012


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