The iPhone models debuting this fall could mark the beginning of an aggressive pricing strategy. Apple’s 2018 lineup will be less expensive than usual, according to Ming-Chi Kuo.
The analyst, who recently joined TF International Securities, published his latest research note that revealed “a more aggressive price policy” is on the way. Rather than squeezing every penny possible out of consumers, the Cupertino-based company would go in a direction that offers more choice at competitive price points.
Last year, Apple introduced the iPhone X alongside the iPhone 8. Aside from being significantly stronger, the iPhone X is also $300 more. Apple angered many people with that decision as $1,000 for anything is a lot. Competitors, meanwhile, have been hesitant to chase Apple into that territory and thus sales have been below expectations.
The 5.8- and 6.5-inch models with OLED displays should hit the market for $800-$900 and $900-$1,000, respectively. The watered-down model, which has a 6.1-inch LCD display, might be a lighter $600-$700.
Kuo’s research note gives a number of reasons for Apple to adjust its prices. Apple might be nervous that, as the smartphone market continues maturing, there’s a greater sensitivity to higher prices. Also, costs have gone down. The final point he adds is that Apple wants to welcome more users into its ecosystem.
The analyst expects Apple will introduce its trio of new iPhone’s closer to the fall, and that isn’t surprising in the slightest. Apple’s been hosting launch events in September for several years now.
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