$1,500 dollars for a phone?! Let us talk about how Apple got us to pay so much for the new iPhone.
Apple has slowly increased the price of an iPhone since 2007.
And last year it made a big leap: Apple announced the iPhone X for $999 – until then, the most expensive iPhone ever.
Do you know why it’s called iPhone X? The “X” stands for “expensive!”
And yes, it was a shock to many, but we bought it regardless of the price.
A year later, after the shock of a thousand dollar smartphone is gone, Apple made another jump.
It’s September 2018, and Apple just announced its most expensive iPhone ever: the iPhone XS Max.
The new phone starts at $1,099 and can cost up to $1,449, if you want the model with the most memory.
Why would Apple raise the price of their phones, even though the components that go into the phone are getting cheaper?
Well, check it out, Apple’s iPhone sales are flatlining.
At this point, everybody who wants an iPhone already has an iPhone.
If Apple can’t sell any more phones, how can they increase sales?
Answer: By raising the price!
Last years’ $1,000 price hike was a test, and it was successful.
The iPhone X was flying off the shelves, and it seems nobody cared that it was the most expensive iPhone ever!
In fact, Apple found out that people LOVED to pay $1,000 for a phone.
It’s a status symbol!
And since the guys at Apple are smart, they thought: “Let’s take this to a new level, and offer a $1,500 phone!”
The fascinating thing is that Apple didn’t really have to release a bunch of new features!
They “just” offered some new sizes and that’s it.
Yes, maybe the processor is a little bit faster and the camera has a new feature, but does this really justify the $1,500 price tag? – Hardly.
Apple has been doing a great job as a brand, and people happily pay a premium for the brand.
Well… It’s cool to have the shiny Apple logo on the back of the phone.
And that’s how Apple gets us to pay so much for the iPhone.
What do YOU think? How much will they charge for the NEXT iPhone?
Join Markus with the markets on Coffee with Markus at https://www.youtube.com/user/rockwelltrading2008