According to the rumor mill Apple’s 2018 iPhone lineup will consist of three new devices. In the low-end range Apple is to release a 6.1-inch LCD iPhone with a borderless display. In addition, Apple is reported to release a next-generation iPhone X along with an iPhone X Plus with a 6.5-inch OLED display. AsThe financial experts at UBS believe that the next generation of the iPhone X could cost more than $ 1,100 at a starting price of $ 1,100.
Is the iPhone X more expensive?
With all the signs indicating that the iPhone X was not selling as well as Apple and its suppliers had hoped, many wondered if the starting price of $ 1,000 was too high even for iPhone loyalists. So most analysts assumed that the iPhone X will maintain its price of 1000 US dollars or even in the range of 900 US dollars.
A new investor note from UBS analysts Steven Milunovich and Benjamin Wilson, however, is based on a different theory. In particular, both analysts claim that Apple will raise the starting price for the iPhone X this year from $ 1,000 to $ 1,100. A 6.5-inch iPhone X Plus should again open up significantly in price.
Analysts believe Apple rarely leaves an established high price range. New technologies should justify the premium price increase. In return, the 6.1-inch LCD iPhone offers a low entry price, which should make the Apple price range significantly more versatile. The goal for Apple, however, is to further increase the average selling price (ASP).
Given that Apple’s iPhone X has managed to significantly increase ASP while reducing revenue by only 1 percent, resulting in a net profit, it is difficult to argue with this approach. The strategy seems to work. The good news for those who believe that iPhone prices are out of control is that Apple wants to ensure a constant influx of new customers by further price reductions at the lower end of the scale.