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(Slate)   How Apple normalized the One Thousand dollar iPhone   ( slate.com) divider line
    More: Interesting, IPhone, iPhone, new iPhone, new iPhone XS, Apple, new iPhone XR, iPhone sale price, thousand-dollar iPhone  
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1135 clicks; posted to Geek » on 13 Sep 2018 at 2:35 PM (9 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2018-09-13 01:55:59 PM  
I didn't read TFA but does "enough jackass first buyers will make us break even" have anything to do with it?

/has an iPhone
//no idea what version
 
2018-09-13 02:17:32 PM  
People are gullible?
 
2018-09-13 02:34:41 PM  
I don't carry $1000 in cash around. I don't want to carry anything around that's worth that much.
 
2018-09-13 02:39:29 PM  
I'm willing to bet the phone I got for free has at least 90% the functionality of an iPhone.
 
2018-09-13 02:39:48 PM  
The same way Harley Davidson kept alive in the 80s and 90s: Selling the image.
 
2018-09-13 02:40:23 PM  
You mean "how Apple normalized the 60% profit margin"?
 
2018-09-13 02:41:02 PM  
The only 'normal' thing here is that people are farking stupid, and they do stuff like spend $1400 on iThings that are crap
 
2018-09-13 02:41:28 PM  
Because people who buy them are more about the status symbol then practical use.
 
2018-09-13 02:41:49 PM  
I've been continually shocked at how much people will pay for an Apple device, or replacements for components, and none of them can really explain why they need them over cheaper alternatives.
 
2018-09-13 02:43:06 PM  
"That might be normal....ON CRACK"
 
2018-09-13 02:43:34 PM  
 
2018-09-13 02:43:35 PM  
You people sound poor. You also sound  uneducated about tax code and deductions for business expenses. While $1000 may seem like a lot to some of you, it's pocket change to others. Many others.
 
2018-09-13 02:44:43 PM  
Although if Samsung really does come out with a phone that has a seamless foldable screen...that could get me to open up my wallet.   Although likely not till the second generation when they've worked the bugs out.
 
2018-09-13 02:45:31 PM  

encephlavator: You people sound poor. You also sound  uneducated about tax code and deductions for business expenses. While $1000 may seem like a lot to some of you, it's pocket change to others. Many others.


Well hello Mr Fancy Pants.
 
2018-09-13 02:52:26 PM  

TylerParry: I'm willing to bet the phone I got for free has at least 90% the functionality of an iPhone.


THIS
you can talk, text, read, browse, and almost anything else you would reasonably need to do on a phone that costs $350-400.  In fact the one I bought one 4 years ago is still rocking along.

People that buy $1000 phones yearly are like people that exchange cars yearly.  They just want to throw money away on a status symbol.
 
2018-09-13 02:52:51 PM  
MechaPyx:

You're going to have to speak up. I can't hear you way down there in commonerville when I'm up here in my ivory tower.
 
2018-09-13 02:53:41 PM  

FlashHarry: The Samsung Galaxy Note9 lists for $1,249.


The Galaxy Note9 can also be found regularly for about 1000.  Iphones rarely go on sale until the next generation is coming.
 
2018-09-13 02:54:30 PM  
What I don't get, is the iPhone costs a thousand dollars. Apple has even said, in interviews about their manufacturing in China, that the iPhone only uses about 200 bucks in materials and 60 bucks in labor. They say they cannot move manufacturing of the iPhone to the US because parts are sourced worldwide (they still gotta be shipped to China...) and because labor costs are higher, so they would have to raise the price.

So I wonder, does it hurt Apple's bottom line so much to not put such a markup on the iPhone? If it does, well, it's already a thousand dollars. Does anyone notice, or even care, if the cost is raised a bit more? Does the consumer who buys a thousand dollar iPhone balk at 1500? Where do they draw the line?

Not really related to the article, but whatevs.
 
2018-09-13 02:56:48 PM  
I got used to having service providers subsidize the cost of my phones.

What's weird now is that they stopped doing that, but my phone bill hasn't really gone down.

If I suddenly loose a big chunk of my income, I figure I'll ditch the lot. It is not clear to me how much happier my smart phone makes me.
 
2018-09-13 02:57:42 PM  

encephlavator: MechaPyx:

You're going to have to speak up. I can't hear you way down there in commonerville when I'm up here in my ivory tower.


I said  *cough* *cough* *mumble* *cough*. That make it any clearer for ya?
img.fark.netView Full Size
 
2018-09-13 03:02:26 PM  
Two of the three new iPhone models available cost less than $1,000.
 
2018-09-13 03:03:46 PM  
About 4 or 5 years ago I decided I was tired of carrying a flip phone and an Ipod touch (2nd or 3rd gen I think), I got an Android phone, I still have it and I'm not looking to change.

I'll change if it stops working, if the battery goes bad and I can't find a replacement (it's replaceable), or if they come up with an affordable one that can fully replace a desktop computer, i.e. run a desktop O.S. with all the freedoms that implies, including dual booting and running Steam or GOG games.
 
2018-09-13 03:09:06 PM  
The best thing about big smartphones is they are a good surface to do a line of blow off of when away from home.
 
2018-09-13 03:10:08 PM  

encephlavator: You people sound poor. You also sound  uneducated about tax code and deductions for business expenses. While $1000 may seem like a lot to some of you, it's pocket change to others. Many others.


My wife and I both work, no kids, and have a nice disposable income. Very nice.
$1000 is not a lot of money for us.
$1000+ for a phone is just plain stupid.

Most people are not using their phone for business purposes. And smart business owners know that you don't over-spend for an item just for the added tax deduction.
 
2018-09-13 03:10:28 PM  

oopsboom: TylerParry: I'm willing to bet the phone I got for free has at least 90% the functionality of an iPhone.

THIS
you can talk, text, read, browse, and almost anything else you would reasonably need to do on a phone that costs $350-400.  In fact the one I bought one 4 years ago is still rocking along.

People that buy $1000 phones yearly are like people that exchange cars yearly.  They just want to throw money away on a status symbol.


I finally went out and bought my first non-keyboard modern phone in June. $250. Does literally everything as well as any $1000 device, except its smaller (which I wanted), & cheaper (also wanted)

HD camera. Full function browsing and youtube watching (though I don't). Android 8 fully updated. Google integration for my gmail account. Etc etc

I can't fathom why someone would pay that much money for basically no functional difference.

Now, I oversee the IT dept at my company, so I'm familiar with the process. We've got a handful of $1000+ iPhone Xs for the bigwigs that get to decree they want them (Company president, head of HR, etc). I set the devices up and fix them for these users. They do basically nothing mine can't.

It's farking absurd
 
2018-09-13 03:14:58 PM  
Wow, I hope none of you edgelords cuts yourselves on the edges of your trac-phones.

A good quality smartphone is going to cost upwards of $7-800.  $1,000 is just the next step. The Galaxy S10 next year will be $1000 as well.  Guaranteed.  The Galaxy Note 9 is ALREADY $1000.  Prices go up.  You can't buy a bushel of apples for 39 cents anymore either.

The real reason people stick with Apple, or Android for that matter is they're locked into an ecosystem.  Paid apps aren't transferable, other home electronics work with one system or the other, etc.  It's not like buying Pepsi this week because Coke isn't on sale.
 
2018-09-13 03:15:23 PM  
Crazy Capitalization in Headline indicates A Boomer is Writing it.
 
2018-09-13 03:20:22 PM  
iPhone XS:
Processor: 2.39 GHz clock with 8MB cache
Display: 2,436 x 1,125 pixels
RAM: 3 GB
Storage: 256 GB
Battery: ~11 hours
Price: ~$1000

7-year-old Dell XPS 15
Processor: 2.5 GHz clock with 3MB cache
Display: 1920 x 1080 pixels
RAM: 4 MB
Storage: 256 GB (SSD option)
Battery: ~9 hours
Price: ~$1000 (at the time)

When you buy a phone, you're buying a pocket computer. Many people in my generation don't even have laptops and use their phones as their primary personal computing device. Granted, upgrading your phone every year is idiotic, but if someone trades an iPhone 6 or earlier for this latest model, they'd be staying on a fairly typical hardware upgrade cadence.

/don't have an iPhone
//or any Apple products
///don't understand how people live without a desktop/laptop
 
2018-09-13 03:23:24 PM  

mjbok: FlashHarry: The Samsung Galaxy Note9 lists for $1,249.

The Galaxy Note9 can also be found regularly for about 1000.  Iphones rarely go on sale until the next generation is coming.


the link actually shows it listed for $999. You can upgrade for the extra $.

disingenuously cherry picking strikes again, sorry you fell in to the trap
 
2018-09-13 03:33:37 PM  
I am so tired of having anything Apple. I hate them. What is a good, cheap Android phone I can switch to? Nice camera preferred.
 
2018-09-13 03:36:48 PM  
I have an iPhone 7 Plus. It was free (well, included in my plan- but it would not be a cheaper plan without the phone so why not?)

It was a generation behind when I got it but was like a phone from the future for me. My previous phone was a 4S.

I expect to get another 4-5 years from this one before I would want to upgrade, although my phone company offers a free phone every 3 years. May as well go for that again next time eligible
 
2018-09-13 03:44:09 PM  
This thread went into the rational direction i've come to expect from Fark Apple threads.

/must be so hard living a life when you get all emotional over a piece of glass and metal
 
2018-09-13 03:46:59 PM  

Great_Milenko: It's not like buying Pepsi this week because Coke isn't on sale.


What kind of monster does that? If Coke isn't on sale I'd drink water.
 
2018-09-13 03:48:45 PM  
My trusty iphone 6s died a month ago and since they new iPhones were not announced yet, I went to the phone store and got the lower priced Android they had. They had flagship Androids but those were the same prices as the current Apple phones. I've been using a low end Android phone for awhile and while it does what I need, it's just a horrible cluserfark of an interface and device. The power button is on the BACK of the device. It's slow. Android's material design is a mess of boxes and things you may or may not need to press. Yes, I can technically do all the things I need to on this but I can not wait to get back to an Apple device and I'm fine with paying around $1,000 for a device I intend to use for a long time that is really well made. I get that it's a luxury but it's one that I'm fine with for myself.

The real news here is the Apple has an iPhone at a lot of price points.

iPhone 7 $449
iPhone 8 $599
iPhone XR $749
iPhone Xs $999
iPhone Xs Max $1099

Basically, there is an Apple for most budgets. Sure the Xs is the high end but bracketing prices like that makes me think that the XR is going to sell like wildfire.
 
2018-09-13 03:52:49 PM  

mjbok: FlashHarry: The Samsung Galaxy Note9 lists for $1,249.

The Galaxy Note9 can also be found regularly for about 1000.  Iphones rarely go on sale until the next generation is coming.


So... the price that the headline is claiming is Apple's fault?
 
2018-09-13 03:54:09 PM  

Contrabulous Flabtraption: I am so tired of having anything Apple. I hate them. What is a good, cheap Android phone I can switch to? Nice camera preferred.


I bought an unlocked Moto X Play about a year ago.  It was by far the most expensive phone I've ever bought ($400 back then, they are $275 now on Amazon.) It's also by far the best phone I've ever owned.

The battery life is amazing, it can recharge from 0 to 60% in about 15 minutes (moto turbopower), and has an optional projector attachment to watch netflix on the side of your house.  I also get $15/month service on mint wireless.

/Has 32gb memory which hasn't filled yet, despite me installing way more apps then anyone needs.
//battery lasts me from 630am to about midnight pretty much every day.
 
2018-09-13 04:01:16 PM  

Contrabulous Flabtraption: I am so tired of having anything Apple. I hate them. What is a good, cheap Android phone I can switch to? Nice camera preferred.


Try the OnePlus 6 (or the 6T coming out very soon).  Great, well made, high-specced Android phone for a solid price.
 
2018-09-13 04:05:12 PM  

physt: Basically, there is an Apple for most budgets. Sure the Xs is the high end but bracketing prices like that makes me think that the XR is going to sell like wildfire.


And what do they really do that's all that different? The screen is a centimeter bigger? The camera can take pictures of your cats in slightly better resolution?
 
2018-09-13 04:05:44 PM  
I had to get a higher data plan last year when I upgraded from a 2012 Motorola Razr M to a 2017 Sony Xperia xz2 compact. Simply for the fact that the phone was so much faster that I could get to more and more web pages while farking at work.
 
2018-09-13 04:09:06 PM  

brizzle365: mjbok: FlashHarry: The Samsung Galaxy Note9 lists for $1,249.

The Galaxy Note9 can also be found regularly for about 1000.  Iphones rarely go on sale until the next generation is coming.

the link actually shows it listed for $999. You can upgrade for the extra $.

disingenuously cherry picking strikes again, sorry you fell in to the trap


I was talking about the 512gb version.
 
2018-09-13 04:14:25 PM  

Mugato: physt: Basically, there is an Apple for most budgets. Sure the Xs is the high end but bracketing prices like that makes me think that the XR is going to sell like wildfire.

And what do they really do that's all that different? The screen is a centimeter bigger? The camera can take pictures of your cats in slightly better resolution?


For me, using Android is an exercise in frustration. The iPhone runs faster and the interface is more pleasant for me to use. I'm lucky enough that the price isn't much of an issue. I don't see why you're upset that I like something you don't.
 
2018-09-13 04:21:49 PM  

physt: For me, using Android is an exercise in frustration. The iPhone runs faster and the interface is more pleasant for me to use. I'm lucky enough that the price isn't much of an issue. I don't see why you're upset that I like something you don't.


I already said that I have an iPhone. I just don't get the four new versions.
 
2018-09-13 04:35:54 PM  

physt: Mugato: physt: Basically, there is an Apple for most budgets. Sure the Xs is the high end but bracketing prices like that makes me think that the XR is going to sell like wildfire.

And what do they really do that's all that different? The screen is a centimeter bigger? The camera can take pictures of your cats in slightly better resolution?

For me, using Android is an exercise in frustration. The iPhone runs faster and the interface is more pleasant for me to use. I'm lucky enough that the price isn't much of an issue. I don't see why you're upset that I like something you don't.


I also find Android lackluster.
 
2018-09-13 04:39:37 PM  
I got buy one get one Galaxy S9s from T-Mobile for $750.  I and the girlfriend can swing $30/month for two years for two brand new phones.
 
2018-09-13 04:40:50 PM  

Mugato: And what do they really do that's all that different?


The OS, I would guess.
 
2018-09-13 04:42:43 PM  

FlashHarry: Mugato: And what do they really do that's all that different?

The OS, I would guess.


Yeah, that's software. You shouldn't need a new device for that.
 
2018-09-13 04:44:58 PM  
fark that, I bought my phone from the manufacturer for $650, it's 2 years behind but it has 128gb of storage and I can change networks if I want to. No way am I buying a new phone with less storage for a grand.
 
2018-09-13 04:46:47 PM  
Every time I want a new (to me) phone, I buy a refurb through Amazon or Woot.  My current phone is a $100 Galaxy S5 that does everything I need.  Is it old?  Sure it is.  Do I care?  No.  It's a tool, nothing more.
 
2018-09-13 04:59:40 PM  

Mugato: physt: For me, using Android is an exercise in frustration. The iPhone runs faster and the interface is more pleasant for me to use. I'm lucky enough that the price isn't much of an issue. I don't see why you're upset that I like something you don't.

I already said that I have an iPhone. I just don't get the four new versions.


Sell several products at a set of price points.

The classic bracket is three products, with the main product in the middle, a stripped-down version below it and an enhance version above it.

Ensure each product has a target market sub-segment (or a very deliberate comparative purpose). They may well be a part of a product family, in which case they should be clearly differentiated from one another. They may in fact be very similar, for example being basically the same product but with differing levels of functionality.

A web software company has 'entry', 'developer' and 'pro' versions, each with increasing features and higher pricing.

A camera manufacturer has a range of similar DSLR products, from a 'first SLR' to professional models.

Price bracketing allows you to have a low-cost option to hook people into your brand, from which you can later up-sell them to a more full-featured product. When you are selling directly, you can also up-sell from the basic model on the showroom floor. This can make having a lower-priced item that sells very few units worth having. In particular if a higher-priced item seems to give rather more value for the price, this is likely to sell more. This is because people often compare on value ('bangs per buck') as much as just price (which they only really do if they are very price sensitive).

For people who are not at all price-sensitive and who always want the very best at whatever price, a 'super premium' option that is significantly more expensive may still be chosen. They only time they will balk is if they feel the seller is trying to take advantage of them.

This also gives customers options, which many like better than the 'take it or leave it' principle when you only have one product. Even if only one item is sold, having a nominal range gives the customer a sense of control in their ability to choose.

Price bracketing enables you to compete in different parts of the same overall market (low price, mid price and so on). When you have the whole market covered, if you do this well you can perhaps even 'own the market', or at least dominate and push out (or hold out) other companies.

Price bracketing is common in the software industry, where it is easy to add and remove features with little cost of doing so. It is also common in fragmented large markets, where there are enough customers in each sub-segment to make it worthwhile.
 
2018-09-13 05:07:07 PM  
Whatever.  I'll still buy it.  People insist on calling it a phone as if it's only used to call their mothers. Sure I wouldn't pay $1000 for a Nokia feature phone, but Motorola Razers cost $600 when they first came out in 2004.  That's roughly $800 today.  For a flip phone.
 
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