Apple 'wants to serve everyone' with wide iPhone price range, Tim Cook says

Posted:
in iPhone edited September 17
Although the cost of the iPhone XS Max may be prohibitive for many people, Apple is trying to cater to a wide range of customers, CEO Tim Cook said in an interview published Thursday.

Phil Schiller at Wednesday's press event.
Phil Schiller at Wednesday's press event.


"We want to serve everyone," Cook told Japan's Nikkei. "We understand that there is a wide range of what customers are looking for and a wide range of prices that people will pay."

With the elimination of the iPhone SE and 6s, the cheapest phone in Apple's lineup is now 2016's iPhone 7, starting at $449. The least expensive 2018 model is the iPhone XR, which costs $749.

The iPhone XS starts at $999, and the XS Max at $1,099. Both are far more expensive than most smartphones, and buyers wanting above 64 gigabytes of storage can easily hit Mac-like prices. A 512-gigabyte XS Max is $1,449 before expenses like AppleCare, a case, and other accessories.

"We always thought ... that if you provide a lot of innovation and a lot of value, there is a segment of people who are willing to pay for it," Cook said in addressing the cost of XS models. "For us, it's a large enough group of people that we can make a reasonable business out of it."

The executive also justified prices by arguing for the convenience modern smartphones provide.

"A lot of things you were buying are now so convenient in one [product] and it has taken those things so much further than they could have ever ventured as a stand-alone device," he observed. "The role of the iPhone has become much larger in people's lives."

He dodged the issue of new tariffs the Trump administration has threatened to impose on China -- which could impact the prices of the Apple Watch, AirPods, and other Apple products -- merely saying he's "an optimist."

Much of the company's supply and assembly chain is based in China, and even if it were to relocate production to the U.S. as Trump has asked for, prices would still have to rise to accommodate higher wage and labor standards, among other expenses.
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Comments

  • Reply 1 of 54
    dws-2dws-2 Posts: 193member
    I think much of the world might disagree with his understanding of 'everyone', but the iPhone Xr is a good phone at a comparatively good price. I plan to pick up a blue one, mostly because I like the color and it has everything I care about.
    flashfan207macpluspluswatto_cobra
  • Reply 2 of 54
    Cesar Battistini MazieroCesar Battistini Maziero Posts: 133unconfirmed, member
    Apple should differentiate the price based on market!

    Here in brazil the Xr is going to arrive for about 4200 reais, $1.342,20 dollars.

    That is a LOT for an iPhone Xr, and even more when you consider that the minimum wage here is 954 reais, about $228,57.

    We work four months to pay taxes, and more than 5 for a new iPhone.........
    ireland
  • Reply 3 of 54
    WTF?!
  • Reply 4 of 54
    Well, "wants" to and doing may be two different things. Still, $450 for an older yet still nice model ain't bad. Beggars can't be choosers, etc.
    racerhomie3GeorgeBMacfallenjtwatto_cobra
  • Reply 5 of 54
    Maybe he could get the same idea of serving Mac customers into his head too. 
    YoRHaGeorgeBMacentropysrazorpit
  • Reply 6 of 54
    Wide, yes, within the range between "Distorted priorities" and "Celebrity Lawyer."
    YoRHairelandfreethinking
  • Reply 7 of 54
    mike1mike1 Posts: 1,708member
    Apple should differentiate the price based on market!

    Here in brazil the Xr is going to arrive for about 4200 reais, $1.342,20 dollars.

    That is a LOT for an iPhone Xr, and even more when you consider that the minimum wage here is 954 reais, about $228,57.

    We work four months to pay taxes, and more than 5 for a new iPhone.........
    So, you're saying Apple should lose money in Brazil because of exchange rates and lower incomes. That's just ridiculous.
    racerhomie3lolliverwatto_cobra
  • Reply 8 of 54
    Apple should differentiate the price based on market!

    Here in brazil the Xr is going to arrive for about 4200 reais, $1.342,20 dollars.

    That is a LOT for an iPhone Xr, and even more when you consider that the minimum wage here is 954 reais, about $228,57.

    We work four months to pay taxes, and more than 5 for a new iPhone.........
    I think the people of Brazil needs to have conversation with its government, the $1342 you will pay for and XR is because you government is taking a big chunk of that price. There is not much Apple can do about they unless they make the entire product in Brazil and they creates a whole host of issue like the plant has to be owned by someone who is Brazilian national, even it phone was built there it still would cost about the same.
    racerhomie3bb-15entropyslolliverrazorpitwatto_cobra
  • Reply 9 of 54
    Face it most people will buy what they want to afford, Apple or any company is not forcing people to pay more than they want to pay. The problem we have is so many people today think everything has equal value and all phone should just cost the same no mater what.
    racerhomie3tjwolflolliverwatto_cobra
  • Reply 10 of 54
    avon b7avon b7 Posts: 2,622member
    YoRHa said:
    ElCapitan said:
    Maybe he could get the same idea of serving Mac customers into his head too. 
    Computers don’t make money anymore.
    I beg to differ. The Mac business is a multi billion dollar business and could be earning more. The mobile division makes more money but that is besides the point.
    razorpit
  • Reply 11 of 54
    Apple should differentiate the price based on market!

    Here in brazil the Xr is going to arrive for about 4200 reais, $1.342,20 dollars.

    That is a LOT for an iPhone Xr, and even more when you consider that the minimum wage here is 954 reais, about $228,57.

    We work four months to pay taxes, and more than 5 for a new iPhone.........
    Apple will sell to any customers who are able to pay what they are asking and there is no shortage of customers who are not price sensitive. Apple should never compete only on price. Down that road lies ruin.
    tmayracerhomie3lolliverrazorpitwatto_cobra
  • Reply 12 of 54
    They want to serve everyone, except people who like phones in a small form factor.  RIP iPhone SE
    avon b7AI_liasirelandentropysatomic101freethinkingtjwolf
  • Reply 13 of 54
    claire1claire1 Posts: 350unconfirmed, member
    XR is gonna be a huge seller. The confusing part is how similar in size it is to XS. It's not really an "SE" version. 
  • Reply 14 of 54
    bb-15bb-15 Posts: 204member
    Apple should differentiate the price based on market!

    Here in brazil the Xr is going to arrive for about 4200 reais, $1.342,20 dollars.

    That is a LOT for an iPhone Xr, and even more when you consider that the minimum wage here is 954 reais, about $228,57.

    We work four months to pay taxes, and more than 5 for a new iPhone.........
    In 2017 Brazil was the second most expensive place to buy an iPhone.

    the Brazillian government levies a significant amount of additional taxes and duties on products sold (by) OEMs that don’t produce phones locally.”

    http://www.iphonehacks.com/2017/05/iphone-7-price-list-country-can-buy-cheapest-iphone-7.html


    SpamSandwichspheric
  • Reply 15 of 54
    dws-2 said:
    I think much of the world might disagree with his understanding of 'everyone', but the iPhone Xr is a good phone at a comparatively good price. I plan to pick up a blue one, mostly because I like the color and it has everything I care about.
    "Everyone' includes those spending $449 for an iPhone 7.   For most, that is affordable -- more a matter priorities than affordability.
    lolliverwatto_cobra
  • Reply 16 of 54
    Well, "wants" to and doing may be two different things. Still, $450 for an older yet still nice model ain't bad. Beggars can't be choosers, etc.
    For most people that iPhone 7 will meet their needs quite well.  It's hardly a beggars choice.
    lolliverrazorpitwatto_cobra
  • Reply 17 of 54
    ElCapitan said:
    Maybe he could get the same idea of serving Mac customers into his head too. 
    I think it's in his head.    It's coming.
    watto_cobra
  • Reply 18 of 54
    irelandireland Posts: 17,386member
    I’ve still yet to hear a good explanation for why Xr larger than Xs.
  • Reply 19 of 54
    ireland said:
    I’ve still yet to hear a good explanation for why Xr larger than Xs.
    Dude, come to the US and bring a stack of money. You know you want one. 😉
    watto_cobra
  • Reply 20 of 54
    SweatShopSweatShop Posts: 1unconfirmed, member
    Oh, they raise the price and they take back the headphone adapter. Sure. You’ll see, next iteration the charger will be removed, and the one after that, you’ll have to pay $2,000 for a phone and cough up some extra for the battery.

    But yeah, you’ll get 3 nm CPU, new lens, retina recognition, blah blah. 

    Glad my 5S still works perfectly. 
    irelanddecoderingfreethinking
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