“In September 2014, Apple broke with tradition and released its latest iPhone, the iPhone 6, in two screen sizes,” Ashraf Eassa writes for The Motley Fool. “Over the years, Apple would continue to differentiate its Plus line of smartphones in certain ways relative to their smaller counterparts. In fact, the level of differentiation seemed to grow when Apple introduced its iPhone 7 series devices, since the iPhone 7 Plus had a dual rear-facing camera system while the iPhone 7 had a single rear-facing camera. With this year’s latest flagship smartphones — iPhone XS and its larger counterpart, iPhone XS Max — Apple has broken with that tradition. Indeed, the two devices, for all intents and purposes, are just different-sized versions of the same device.”
“Here’s why this is a mistake,” Eassa writes. “Apple should encourage upsell. The benefit to Apple endowing the larger and more expensive versions of its devices with additional features is that such a practice could encourage users who simply want the best iPhone available to go with the larger variant. Additionally, individuals who might be torn between the two sizes might view the extra features in the larger model as a swing factor to push them toward the bigger models. ”
“Apple’s competition seems to be adding real value to their larger-screen devices beyond simply the larger screen to encourage upsell,” Eassa writes. “Apple, on the other hand, took a step back on this front with this year’s iPhone XS and iPhone XS Max devices.”
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MacDailyNews Take: The larger 6.5 display in the Xs Max is more than enough benefit over the 5.8-inch Xs to encourage plenty of upsell. Another benefit is that the Xs Max’s battery is also larger and therefore longer lasting.
A bigger problem, depending on the margins Apple is extracting from each model, is that the XR may be encouraging downsell as many of the hoi polloi will see its larger 6.1-inch display for $250 less than the 5.8-inch Xs and gravitate to that model. Of course, Apple may be encouraging this “downsell” because they are getting better margins out of the XR than out of the Xs.