Money Don't laugh: A $1,000 iPhone could be a great move for Apple

07:10  14 september  2017
07:10  14 september  2017 Source:   MarketWatch

iPhone Upgrade Program customers can now trade in phones through the mail

  iPhone Upgrade Program customers can now trade in phones through the mail Apple seems to be making it easier to trade in iPhones through the iPhone Upgrade Program with a new mail-in kit option, as spotted by John Angarano over at the MacRumors forums. Apple launched the iPhone Upgrade Program two years ago alongside the iPhone 6S as an alternative for customers looking to upgrade their phone without being tied to any one carrier. But if you were looking to upgrade your phone to a new model, you had to schedule an appointment in an Apple Store to trade in the old phone, something that seems to finally be changing with the new mail-in kit.

Apple . Apple ’s iPhone X starts at 9. A higher-capacity version goes for $ 1 ,149. Is the 9 price tag for the iPhone X too high? Some people clearly think so. They think Apple AAPL, -0.40% has finally overreached. They think this thing could be Tim Cook’s folly.

Apple 's current premium-tier iPhone model, the 7 Plus, starts at 9 with 32 GB of memory, but goes up as high as 9 for 256 gigabytes, meaning a $ 1 , 000 iPhone might not be too much of a jump for the tech giant to make.

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Editor’s note: The opinions in this article are the author’s, as published by our content partner, and do not necessarily represent the views of MSN or Microsoft.

Is the $999 price tag for the iPhone X too high?

Some people clearly think so. They think Apple (AAPL) has finally overreached. They think this thing could be Tim Cook’s folly. Apple stock, which had risen on news of the new cellular Apple Watch, slid after the high-end phone was unveiled.

The New Apple iPhone 8 Is Built for Photography and Augmented Reality

  The New Apple iPhone 8 Is Built for Photography and Augmented Reality Apple on Tuesday introduced the iPhone 8 and iPhone 8 Plus, mostly incremental upgrades to the existing iPhone 7 and 7 Plus models. The iPhone 8 and 8 Plus, made of aluminum and glass, come in silver, space gray and gold colors. They’re water- and dust-resistant with upgraded displays and studio speakers. They’re powered by an all-new, six-core processor, which Apple calls the A11 Bionic. They will be available in 64GB and 256GB configurations starting at $699 for the iPhone 8 and $799 for the iPhone 8 Plus. They will start shipping on September 22.

Major tech companies such as Apple and Samsung are poised to start selling smartphones that cost significantly more than $ 1 , 000 . Here is how those devices could boost Microsoft's alleged Surface phone.

I have been buying apple EarPods for years to use with my iPhone . I called apple about it, but I was told that the 1 year warranty doesnt mean anything because I don ' t have apple warranty on my iPhone anymore. Within weeks one of the headphones had reduced output this can be changed, but

Even the crowd at the Steve Jobs Theater wasn’t impressed. The announcement of the new phone’s price was greeted with an embarrassing silence. The moment stuck out like an especially sore thumb because these fans had spent all morning cheering and applauding pretty much everything else.

But here’s what the critics may be missing.

From the point of view of Apple, what matters isn’t whether you or I would pay a thousand bucks for a new smartphone. It’s whether there are enough people out there who will, and whether Apple can take their money.

And all the evidence says: Yes, there are, and, yes, it can.

Even the original iPhone sold for $700 in today’s money. Plus the cost of the two-year contract you were locked into. Yet people lined up to buy it.

Apple introduces ‘Face ID’ for iPhone X

  Apple introduces ‘Face ID’ for iPhone X Apple today confirmed the iPhone X will feature facial recognition technology dependent upon a new “true depth camera system” including an infrared camera, flood illuminator, dot projector, and proximity sensor. The Face ID feature will work in low light situations and, according to Apple, there’s only a one in a million chance another face (unless you have an evil twin) can unlock your device.Every time you look at your iPhone X it detects your face. The feature will allow users to unlock devices simply by looking at them, essentially letting iPhone owners to use their face as a password.

Specifically, Moskowitz believes that Apple can or should offset the iPhone 8’s $ 1 , 000 price point by offering buyers a free annual subscription to Apple “Such a move could make a $ 1 , 000 + iPhone 8 seem more within reach, with the 6 in services serving as a quasi-discount or rebate,” he said.

But still, with the iPhone 7 Plus, we ’ re talking about the top-end version of Apple ’s most expensive phone. If the entry price of the iPhone 8 is above $ 1 , 000 , that implies that a version with extra storage will come in a couple hundred more than that

The super-luxury market

This is Apple’s bold move into the luxury, or even super-luxury, market. And that market is huge, and booming, and ridiculously lucrative.

Consumers worldwide will spend about $300 billion on luxury goods this year, according to the most recent study by Bain. Data company Euromonitor puts the figure still higher, at $400 billion — including $85 billion just in the U.S. Most of those products are grossly overpriced. The profit margins are ridiculous. The real money is made at the high end.

Consider, for example, how it works in the Swiss watch industry. (And put aside the talk about the Apple Watch, and just consider this from the point of view of luxury marketing.)

Super-luxury watches account for a very small number of the timepieces the Swiss make every year. But they account for the lion’s share of the industry’s revenues.

Last year, for example, only 6% of Swiss watch exports were priced at $3,000 — wholesale — or above. But those watches brought in about two-thirds of the industry’s total export revenues.

What happened to the iPhone 9?

  What happened to the iPhone 9? Apple announced its iPhone X. It’s the new flagship iPhone that will be released in November, weeks after the iPhone 8 and iPhone 8 Plus go on sale on September 23rd. Apple says you’re supposed to pronounce the iPhone X as “iPhone ten,” and it’s designed to mark 10 years of the iPhone. While the iPhone 8 is an iPhone 7S in all but name, the number jump across all the new iPhone models means we’re now officially missing an iPhone 9.Apple’s typical S naming is gone for this year at least, which isn’t entirely surprising.

Too many connections. Seido SURFACE Case for Apple iPhone 7 - Black/Black.

After speaking with Trump, Apple reportedly asked suppliers Foxconn and Pegatron to figure out how they could possibly move iPhone manufacturing to the U.S., according to Nikkei Asian Review. I Only Spent 5, 000 to Buy a Home in This Top Market and Still Went Broke.

The average wholesale price of those watches, incidentally, was an eye-watering $8,200 each. No kidding.

I can’t imagine spending $3,000, let alone $8,300, on a watch. But people do. And those people will think nothing of spending $1,000 on a new iPhone. You could argue Apple could be setting the price too low.

Marketing basics

It’s Marketing 101 that you have different products at different price points.

You have cheapskates and Luddites like … well, me. I recently bought my first iPhone after firing Google (GOOG)(GOOGL) I squawked at the prices in the Apple Store. So I shopped around and bought an SE without a contract for $150. That may be about the cheapest deal for a new, current-model iPhone.

On the other hand, you have consumers like the public-relations executive I met last spring at the Palm Beach International Boat Show. She was proudly showing off her brand-new Product(Red) Special Edition iPhone, which cost $700 or more. I realized during the conversation that the product had only been launched that day. So in the middle of a busy trade show, she had jumped in her car, or an Uber, and raced over to an Apple retail store to replace her $700 iPhone with a model that was almost exactly the same, except for the red case.

And this wasn’t some 24-year-old. This was a mature, middle-aged adult with kids.

Is she going to spend $1,000 to have the “top of the range” new iPhone? I’ll bet she is. With the $400 Gucci case too.

This move by Apple is not without risks. The X may deter more mainstream shoppers from upgrading to the iPhone 8. They may figure it’s not enough of an innovation, and decide to hang on to their 6s or 7s for another year until the X falls in price.

Meanwhile, there’s always the new Apple Watch to keep them occupied.

The iPhone 8 back glass is more expensive to fix than the screen .
The iPhone 8 and 8 Plus' most obvious design change is the switch to a glossy, glass back. There was a chance this glass would be priced at or around the same price as a cracked screen under AppleCare+, but that's apparently not the case: AppleInsider confirmed today that a broken back won't qualify for a $29 screen replacement. It'll instead be subject to an "other damage" fee of $99 (plus tax). Apple gives users two screen replacements and two miscellaneous damage incidents at the $29 and $99 price respectively.

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