Analysts say that a variety of factors are likely to see the price of flagship smartphones continue to rise, with the success of the iPhone X a key influence.
While there were many who doubted that even Apple could persuade significant numbers of consumers to pay a four-figure price for a phone, CNET echoes our own comment that the company has proven skeptics wrong …
Samsung, Huawei and OnePlus are all following Apple’s example in pushing up the prices of their flagship devices, says CNET’s Jessica Dolcourt.
With strong iPhone X sales, Apple proved that mainstream buyers are willing to pay almost as much, if not more, for their cell phones as they would for a powerful laptop. And with rumors of an even pricier 2018 iPhone X Plus-style phone coming down the pike this September, Apple’s moves to usher in the era of the $1,000 phone may just be getting underway.
There are some mundane reasons for this, argues LG.
Companies are also including ever more sophisticated – and expensive – components in their phones.
But some of it, say analysts, is simply Apple making a decision to charge the price the market will bear.
Wood even believes that this year’s flagship might start at $1200.
Carolina Milanesi, an analyst with Creative Strategies, agrees. “There is certainly more going into these phones than ever before,” she said in an email. “The [materials cost] is certainly growing for these devices, but I do think that there is a premium margin applied by the brands to their flagship products because they are status symbols.”
While today’s tariffs have made the true cost of phones more visible, the reality for most consumers is that they make a monthly payment. A $200 price differential over a two-year payment plan amounts to less than $9/month, which for many is not going to be the key factor in their purchase decision.
How far do you think Apple could push pricing on its flagship iPhone over the coming years? What’s the most you would pay for the right device? Let us know your views in the comments.
Photo: VentureBeat
