Apple announced a revision of its estimates for the first quarter of the year: they were going to sell less than expected, and that caused a tumult in their shares, which fell yesterday a brutal 9%.
That unleashed all kinds of debates, and among the proposals to help overcome the path was that of those who argued that it was time for Apple to lower the price of iPhones . We doubt that will ever happen, because in the last decade the company has never done it: it kept them for a certain time, but lately those prices do nothing but rise.
The price evolution of the iPhone speaks for itself
Apple is not exactly famous for offering products at affordable prices, and that has become especially apparent in recent times with the iPhone.
Apple’s smartphones have become a benchmark for a market that has been inspired by these phones since the original model arrived in 2007, and in Cupertino have been able to make iterations that made the iPhone an increasingly capable product but also every time more exclusive by price and features.
The price policy of Apple in terms of the iPhone has been unmovable: (almost) have never dropped prices from one generation to another nor has it lowered the price of an iPhone in the market before it was one year old since its appearance .
The “almost” is because they actually did it once : in our analysis we referred to the launch price of each model, but Apple ended up lowering the original iPhone from 599 to $ 399 a few months later.
There have been minor anomalies in that policy. The first, the appearance of the iPhone 5C that did have a lower price than their predecessors, the iPhone 5, but in reality they were something like a “rehash” of those. Something similar happened with the iPhone SE, that compact model that was introduced in March 2016 and that had a starting price of 499.
The other anomaly has occurred with the maintenance of the starting price for its base model. It happened with the iPhone 5, the iPhone 5S and the iPhone 6: all had a starting price of 699 euros .
From there Apple unfolded its catalog with the “s” models and was increasing the price more or less sensitive . With each new announcement came a reduction in the models of previous years, our analysis of how prices fall over time made it clear, true, but even in those cases the “iPhone of the past” continued to have high prices.
The increase, however, was especially pronounced in 2017 with the launch of the iPhone X (1,159 euros), which in turn served as a new turning point for a pricing policy that has once again put consumers to the test with the iPhone XS that did keep the price of the X, the iPhone XS Max (1,259 euros) and those iPhone XR (859 euros) that although it seems lie are the “Apple iPhone”.
Apple has not been the only one to raise prices, and in fact most major manufacturers have applied the story : if Apple can do it, so can we .
Google, Samsung, Huawei or LG have long been top-of-the-line models that exceed the barrier of 1,000 euros, something that seemed unthinkable not long ago and that has suddenly become the norm if one wants the most of the most.
It is the era of super high-end mobile phones in which design and performance are top, especially when you want the best of the best in the field of mobile photography .
At Apple, the result of that strategy has been very effective for its coffers: the profit margin of the iPhone is the envy of the market and has allowed Apple to continue to have overwhelming revenues quarter after quarter. They have taken good advantage of this particular hen of the golden eggs, but it seems that the hen is running out of the bellows .