How much did you pay for your iPhone? Last week I read an article on USA Today which, on the surface, looked accurate, but after consideration is all too wrong.
Dear Apple and Samsung, $1,000 is way too much for a smartphone, consumers say
What’s wrong with that picture?
Too much? Maybe that’s why most of the smartphones Apple and Samsung sell are priced less than $1,000. Yes, Samsung’s Galaxy-whatever line has high end premium models that compete with Apple’s more expensive XS and XS Max, but that’s not the norm.
Apple’s #1 seller is iPhone XR, which starts at $749, and about half of Apple’s annual sales of new iPhones are last year’s models, not the newest and most expensive.
Earnings reports for Apple and Samsung both showed a clear trend: consumer resistance to the ever-growing high prices of premium smartphones.
That seems to say that slowing smartphone sales are because of price. As usual, reality has more to it than a single side. Money is an issue, yes, but so is the fact that smartphones are being kept longer than in years past. As an example, iPhone 7 was released a few years ago but still runs iOS 12, will run iOS 13, and the camera takes photos and videos that equal or exceed comparably priced Samsung and other mid-range smartphones.
If iPhone 7 runs the same software and photos and videos look about the same, then why bother to spend $1,000 to upgrade? Smartphones are mature, so is $1,000 too much?
Look at all you get for $1,000?
Better than broadcast video– 4K on the new iPhone models– photos that are almost indistinguishable from more expensive DSLRs, always connected 4G LTE, fast Wi-Fi, and some of the best applications that make smartphones competitive with Windows 10 PCs and the Mac (which starts at $1,099; a similarly sized iPad Pro starts at $799, 4G LTE is $200 more).
The point I’m making is that $1,000 for a device that does so much is not expensive if you keep it two or three years. I keep my Macs– iMac and MacBook Pro– on average for about five years. Three years for a $1,000 iPhone makes it an absolute bargain because it almost competes with my Mac; the only negative being display size.
Relative to their capabilities– which exceed, in many cases, a notebook– any new model, from $449 for an iPhone 7 to $1,449 for a fully maxed out iPhone XS Max, are bargains which retain the best resale value and easily last three to five years, too.
A $1,000 iPhone is cheap.