Apple's established 'staircase model' suggests 'iPhone 8' price could reach $1100
A new analysis details Apple's historical pricing trends with the iPhone, and predicts that the 256-gigabyte "iPhone 7s Plus" could reach a price as high as $1100, with the "iPhone 8" at that point or even higher.
Image credit Nodus and Gordon Kelly
Asymco's Horace Dediu has published a breakdown of new iPhone pricing that he calls the "staircase model," dating back to the original release. The graphs shows a "high degree of consistency of pattern" with the floor of the staircase a consistent $400, with the ceiling growing every three years by $100, now sitting at $950 for a 256GB iPhone 7 Plus.
Dediu notes that should historical trends for the last decade continue, the ceiling is due for another $100 jump this year, with the ceiling hitting $1100 for some model of the device -- likely any "iPhone 7S Plus" and probably the "iPhone 8" as well.
There are changes in pattern, such as the iPhone SE, and the increase in storage to 256GB. However, the impact of a full-featured device like the rumored iPhone 8 would likely be one of those pattern-shifts in the upwards direction as well.
As a result of the staircase pricing, the average price of the phone stays mostly the same, minus effects of outlying models, like the iPhone SE and possibly the "iPhone 8."
"The iPhone can be seen as controllingthe $650 point, the Mac $1200, the iPod $200 and the iPad $450," writes Dediu. "Thispricing signals the product's value and the value of thebrand."
Speculation has emerged that the tech-loaded "iPhone 8" would likely retail for $1000 or more, with some discussions centering around a $1200 price point.
Image credit Nodus and Gordon Kelly
Asymco's Horace Dediu has published a breakdown of new iPhone pricing that he calls the "staircase model," dating back to the original release. The graphs shows a "high degree of consistency of pattern" with the floor of the staircase a consistent $400, with the ceiling growing every three years by $100, now sitting at $950 for a 256GB iPhone 7 Plus.
Dediu notes that should historical trends for the last decade continue, the ceiling is due for another $100 jump this year, with the ceiling hitting $1100 for some model of the device -- likely any "iPhone 7S Plus" and probably the "iPhone 8" as well.
There are changes in pattern, such as the iPhone SE, and the increase in storage to 256GB. However, the impact of a full-featured device like the rumored iPhone 8 would likely be one of those pattern-shifts in the upwards direction as well.
As a result of the staircase pricing, the average price of the phone stays mostly the same, minus effects of outlying models, like the iPhone SE and possibly the "iPhone 8."
"The iPhone can be seen as controllingthe $650 point, the Mac $1200, the iPod $200 and the iPad $450," writes Dediu. "Thispricing signals the product's value and the value of thebrand."
Speculation has emerged that the tech-loaded "iPhone 8" would likely retail for $1000 or more, with some discussions centering around a $1200 price point.
Comments
Dreamland aside, i think your premise that having a higher priced tier will drive customers to another brand rather than opting for a lower tier is pretty nuts. I didn’t want the Edition watch so i got the steel. I didn’t get a Samsung POS instead.
In all likelihood, if someone wants an iPhone 8 but can't afford one, they'll get a 7s or 7s Plus. That's why Apple has a "pricing staircase." The S8 does not automatically win over those customers.
It's a false dilemma, of course. The choices aren't restricted to only iPhone 8 or S8.
what if...
it has sapphire front and back?
and the supposed stainless steel sides are actually a tough Bulk Metallic Glass alloy?
now there's a $1700 phone!
Customers will have more choice than ever and there will be an iPhone for almost everyone. If this is really a luxury model in limited supply we will we probably see Apple actively 'anti-selling' it.
It won't be for everyone. It's always silly for people to get offended when Apple release a product that is not for them personally.
iPhone 8 128 GB - $969
iPhone 8 256 GB - $1069
$100 premium over 7s Plus. Like everything else.
And now that they've introduced 512 with the iPads...I could see that model too.
iPhone 8 512 GB - $1169
First, don’t rewrite history — the 5c was a big seller. In the US carrier stories the 5s and 5c were the top two selling handsets.
https://www.cultofmac.com/248616/iphone-5s-is-best-selling-smartphone-while-iphone-5c-comes-in-2nd-or-3rd/
http://appleinsider.com/articles/13/10/04/apples-iphone-5s-tops-sales-charts-at-big-4-us-carriers-iphone-5c-close-behind
I hardly think tech press screaming over anything is relevant. It’s usually ignorant nonsense and not aligned with normals.
I doubt Apple will offer a higher priced device without having value-adding reasons why. See iPad. See Mac.
So again, having a high priced tier won’t push users to Samsung as you claimed.