Apple is expected by analysts to raise prices by as much as $100 for some updated models of its flagship device when it unveils the iPhone 15 at an annual promotional event set for Tuesday. Those new iPhone Pro models are expected to include titanium casing, significantly improved processors, and cutting edge camera features.
née Pro Max) rendering based on CAD. (imagevia @UniverseIce)
Aaron Tilley for The Wall Street Journal:
The move to steer consumers to premium models has worked phenomenally for Apple in recent years, boosting revenue and profit even when the number of devices sold has been stagnant. Potential price increases will help pay for growing component costs because of inflation, but some analysts have warned that the strategy will soon hit a ceiling.
“The Pros have probably reached their saturation point,” said Josh Lowitz, a co-founder of Consumer Intelligence Research Partners. “I don’t think there are a ton of new iPhone Pro customers.”
MacDailyNews Take: “Probably.” (smirking so hard our faces hurt)
You know, because nobody ever gets born, graduates college, gets a new job, so how could there be “a ton of new iPhone Pro customers?”
As Apple prepares for the iPhone 15 launch, its challenge will be to convince customers that the Pro features are enough to warrant a pricey upgrade.
“It’s becoming harder and harder for consumers to distinguish what the new Pro features are,” said Michael Gartenberg, a senior director on Apple’s marketing team before leaving in 2016, who is now an independent technology adviser. “For most users, the iPhone 13 is going to be good enough, and the base iPhone camera takes good enough pictures.”
MacDailyNews Take: Whatever Apple did to Michael Gartenberg, it was a doozy. Dude lost at least 50 IQ points since his departure from the mothership.
Consumers not named Michael Gartenberg can easily distinguish what the new Pro features are because they’re not mentally deficient.
In addition to the incremental upgrades in processors and cameras, analysts expect the new iPhone Pros will have titanium casing for a lighter feel than standard stainless-steel iPhones.
MacDailyNews Take: The first 3nm SoCs in a smartphone are not “incremental.” Nor is the first periscope camera lens in an iPhone. The titanium is not just for weight, but also for durability; again, not “incremental.”
Apple began its journey into higher priced Pro iPhones four years ago… As the years progressed, Apple has added more ways to distinguish its higher-end phones and entice users to go for the Pro models, such as last year’s iPhone 14 Pro coming exclusively with the more advanced chipset. The iPhone Pro strategy worked. iPhone prices haven’t changed since 2020, but Apple’s sales grew as more buyers opted for premium phones.
MacDailyNews Take: Apple is differentiating iPhone Pro models far better today and will very soon do so even better with the iPhone 15 Pro and the iPhone 15 Pro Max which will even be better differentiated between themselves beyond display size (iPhone 15 Pro Max will offer the periscope lens camera exclusively). Apple owns the premium smartphone market and will only strengthen its domination with the release of the iPhone 15 lineup as customers with means line up in droves to pay whatever Apple wants to charge for the world’s best smartphones.
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I don’t know how MacDailyNews defines “incremental”, but the simple act of going from 5nm to 3nm in it is neither incremental nor monumental. What the end product does with the reduction in die size is what determines whether the differences are notable. E.g. if Apple simply decides to reduce the SoC and battery size because the new node size uses less space/power, then it’s not even an incremental improvement. Even if they decide to stuff more transistors in and get 20-30% better performance – isn’t that still ‘incremental’?
Similarly, MacDailyNews says going to Titanium isn’t an ‘incremental’ improvement. Why not? At most, the new material will save 10-15% in weight – that’s certainly an incremental weight saving.
The periscope camera in the Pro Max could potentially be a substantial improvement rather than an incremental one if it provides double the optical zoom from the previous model. But that’s really the only rumored improvement I’d say that of.
In general, I think if feature rumors turn out to be correct, this upgrade will be a fairly boring one. Aside from the above, we’ll likely see an ‘action button’ replacing the mute switch and USB-C connector. Nothing exciting there either.
If Apple does indeed increases prices, I think it’ll be a mistake. They should reserve price increases when they have a substantially better phone on their hands. The iPhone 15s don’t qualify as substantially better.
Thomas says: “new material will save 10-15% in weight – that’s certainly an incremental weight saving.” If I bought a new treasury bond that would pay me 15% annually for ten years, I’d call that one hell of a lot better than an “incremental” upgrade. By your own definition, the (maybe) price increase of the highest tier coming iPhone is below incremental. Don’t cheap out; get one…I will.
💕 MDN’s takes on this! Hilarious, and, oh, so, true…