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“iPhone ’s prices remained the same for the 5th consecutive year”. Well, not really.

September 10, 2022
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Strategy | Business Models | Tech

“iPhone ’s prices remained the same for the 5th consecutive year”.

Well, not really. In US the phones are actually cheaper due to inflation (e.g. ~ 8% in 2021), but more expensive in the rest of the world (ie. strong dollar and the fact that the prices are derived from it)

Something else is interesting: we know from published research that consumers are willing to pay more than these prices to get their iPhone, so why is not Apple going for every penny it can?

My intuition tells me that they want to leverage their services to as many people as possible, hence lowering the customer acquisition costs (ie. you need at least 1,000$ to buy an Apple product in order to use those services).
At this point Apple makes 44 $/user per year from services, still far behind to Google & Facebook.

A significant change in price will eventually arrive next year with the N3 chip.


Apple Event 2022 - iPhone 14 Pro price

Source: Apple


 

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