Barclays survey suggests Apple's iPhone Upgrade Program well suited for 'iPhone 8' pricing...

AppleInsiderAppleInsider
Posted:
in iPhone edited August 2017
A new research note suggests demand is soft amongst existing iPhone owners, suggesting that only 18 percent of current iPhone owners are interested in an "iPhone 8" costing $1000 and up with cash out of pocket, but $50 a month isn't unreasonable -- a figure essentially matched by Apple's iPhone Upgrade Program.




An investor's note published by Barclays spotted by CNBC has mixed news for Apple on the "iPhone 8" front. The survey showed that 85 percent of respondents to the survey are willing to pay more than they did a few years ago -- suggesting that consumers are aware of the effect that heavy subsidies had on early smartphone pricing.

Other data from the Barclays survey said that on the average, consumers want to spend $48.50 on a 12-month device installment plan -- but with device turn-in for the newer model the following year. The median number seems ideal for Apple's iPhone Upgrade program, which allows users to trade in a current device every year.

At present, the iPhone 7 Plus with maximum 256GB of storage sells for $969. That same phone on Apple's upgrade program is available for $45.75 per month with AppleCare+ with ownership after 24 months, or a trade-in possible after 12 months. AT&T Next has the same device without extended warranty for $40.38 per month for a 24 month period -- with trade-ins for a new device possible after 12 months.

Amongst all of Barclays' responders, including owners of other smartphone brands, the number willing to pay more than $1000 for a device drops to 11 percent.

At present, a Samsung Galaxy S8+ with 64GB of storage retails at AT&T for $849.99 with similar monthly plans available. The 128GB Pixel XL from Google retails for $869.

Predictions have ranged between Apple could charge a starting price of around $1000 and as much as $1200 for the starting cost of the iPhone 8.
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Comments

  • Reply 1 of 38
    mubailimubaili Posts: 449member
    Wait for yearend BOGO promotions from the carrier
  • Reply 2 of 38
    pbruttopbrutto Posts: 29member
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    stanthemanGeorgeBMac
  • Reply 3 of 38
    irelandireland Posts: 17,794member
    Someone at Barclay's owns AAPL
    SpamSandwich
  • Reply 4 of 38
    Mike WuertheleMike Wuerthele Posts: 6,585administrator
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    A large amount of this depends on how you feel about the program. Should it give AUP members priority over other buyers? Last I checked, it doesn't promise that.

    I see where you're coming from on an "extra payment" because of unavailability at the 12-month time, but it's not like your gear lights on fire at 12 months, zero hours, and zero minutes. 
    watto_cobrapscooter63
  • Reply 5 of 38
    stanthemanstantheman Posts: 332member
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    Upgrade Program participants should have their orders filled first, because their orders were placed 12-18-24 months earlier than customers placing one-time orders in September. Not only would that policy be fair, but it would also cause a LOT more people to join the Program. By reserving the first iPhone units for Program members, Apple would effectively be charging for an earlier place in line.
    edited August 2017 radarthekatnetmageGeorgeBMacMacsplosionMetriacanthosauruslollivermuthuk_vanalingam
  • Reply 6 of 38
    Mike WuertheleMike Wuerthele Posts: 6,585administrator
    stantheman said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    Upgrade Program participants should have their orders filled first, because their orders were placed 12-18-24 months earlier than customers placing one-time orders in September. Not only would that policy be fair, but it would also cause a LOT more people to join the program. Apple could effectively charge for a better place in line by reserving the first units for the most loyal buyers.
    Sure, they could, and it would probably in fact have that effect -- but Apple doesn't promise head of the line at this time. 

    I suspect they won't, either. There's press benefits in the media for massive lines at Apple stores for the new phone, which you wouldn't have if the AUP members take all of the first run. Plus, I think the carriers would be pretty pissed about it.
    pscooter63muthuk_vanalingam
  • Reply 7 of 38
    gregg thurmangregg thurman Posts: 456member
    I posted here when the first rumors began to swirl about a $1200 price tag, that the incremental monthly increase to a 24 month contract was only about $15.00.

    there's a reason all those "As Seen on TV" deals are $19.95. The average consumer doesn't think anything of a $20 expense. A well heeled consumer (Apple's target) would think nothing of a $20 increase to a monthly plan, especially if there is perceived extra value (larger OLED display?).
  • Reply 8 of 38
    NY1822NY1822 Posts: 621member
    I see Mike's point with the press and hysteria created with "pre-order madness", But the whole pre-order at midnight/ refresh button, refresh button....server down, refresh button, etc....is getting old and seems un-Apple like....I don't have Apple Care, but would get it Apple does something like have the first 8 hours of pre-ordering only for Apple Care Members. This would create some sense of order, and I doubt carriers would be that upset with it. Just have an exclusive 8-hour window then it's open for everyone.
    edited August 2017 Metriacanthosaurus
  • Reply 9 of 38
    SoliSoli Posts: 10,034member
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    stantheman said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    Upgrade Program participants should have their orders filled first, because their orders were placed 12-18-24 months earlier than customers placing one-time orders in September. Not only would that policy be fair, but it would also cause a LOT more people to join the Program. By reserving the first iPhone units for Program members, Apple would effectively be charging for an earlier place in line.
    You two sound entitled as fuck. You're using a program so you can pay less out of pocket up front. That's it! You don't deserve anything extra from Apple for buying on credit.
    StrangeDaysaylktmaymwhitepscooter63
  • Reply 10 of 38
    NY1822NY1822 Posts: 621member
    Why not throw in early pre-order access to Apple Music Subscribers...as discussed here in the past, there's so many bundles apple can create
  • Reply 11 of 38
    StrangeDaysStrangeDays Posts: 12,407member
    we don’t need pay-for-acess. if they did that then it would still sell out immediately only now it would be to subscribers. people would complain about that too, clearly. so first come, first serve on day of launch is the fairest system. 
    Solimwhitewatto_cobrapscooter63
  • Reply 12 of 38
    GeorgeBMacGeorgeBMac Posts: 11,421member
    Soli said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    stantheman said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    Upgrade Program participants should have their orders filled first, because their orders were placed 12-18-24 months earlier than customers placing one-time orders in September. Not only would that policy be fair, but it would also cause a LOT more people to join the Program. By reserving the first iPhone units for Program members, Apple would effectively be charging for an earlier place in line.
    You two sound entitled as fuck. You're using a program so you can pay less out of pocket up front. That's it! You don't deserve anything extra from Apple for buying on credit.
    The best way to lie is to tell part of the truth.
    ... And that is part of the truth...
  • Reply 13 of 38
    MetriacanthosaurusMetriacanthosaurus Posts: 880member
    Upgrade Programs/Leases are the only reason 7 Plus pricing exists. The same is true for the coming iPhone 8.
  • Reply 14 of 38
    MetriacanthosaurusMetriacanthosaurus Posts: 880member
    stantheman said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    Upgrade Program participants should have their orders filled first, because their orders were placed 12-18-24 months earlier than customers placing one-time orders in September. Not only would that policy be fair, but it would also cause a LOT more people to join the Program. By reserving the first iPhone units for Program members, Apple would effectively be charging for an earlier place in line.
    It is simple. Buying full retail should not be available in the first x hours of pre-sale. Period. Whether it is 2, 6, 8 hrs, I don't care. The only options in the early hours should be Upgrade Programs, such as Apple's, AT&T's, etc. These users are paying for the privilege of a 12-month upgrade, and every week of lapse is money wasted. 

    After the first x hours, then orders could open up to people willing to pay full retail. It would also dramatically cut down on scammers and scalpers buying up early inventory. This is entirely appropriate and there is no valid argument against it.

  • Reply 15 of 38
    Mike WuertheleMike Wuerthele Posts: 6,585administrator
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    Upgrade Program participants should have their orders filled first, because their orders were placed 12-18-24 months earlier than customers placing one-time orders in September. Not only would that policy be fair, but it would also cause a LOT more people to join the Program. By reserving the first iPhone units for Program members, Apple would effectively be charging for an earlier place in line.
    It is simple. Buying full retail should not be available in the first x hours of pre-sale. Period. Whether it is 2, 6, 8 hrs, I don't care. The only options in the early hours should be Upgrade Programs, such as Apple's, AT&T's, etc. These users are paying for the privilege of a 12-month upgrade, and every week of lapse is money wasted. 

    After the first x hours, then orders could open up to people willing to pay full retail. It would also dramatically cut down on scammers and scalpers buying up early inventory. This is entirely appropriate and there is no valid argument against it.

    "paying for the privilege"

    No, they aren't. In fact, AUP is a zero-interest loan on the device. Literally not paying one dime extra for the "service." If you have, and are using, a device that you haven't paid in full, there isn't "money wasted" at all. I see where you're coming from, but its a logical fallacy.

    I'm on AT&T's Next, so I do have skin in the game. Even so, there are no good arguments for what you propose.

    Want to get on one of these programs, and guarantee that the device you want is available when it's time, so there's no "money wasted?" Schedule it for a mid-December anniversary date.
    edited August 2017 RonnnieOSolimwhitepscooter63StrangeDays
  • Reply 16 of 38
    SoliSoli Posts: 10,034member
    GeorgeBMac said:
    Soli said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    stantheman said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    Upgrade Program participants should have their orders filled first, because their orders were placed 12-18-24 months earlier than customers placing one-time orders in September. Not only would that policy be fair, but it would also cause a LOT more people to join the Program. By reserving the first iPhone units for Program members, Apple would effectively be charging for an earlier place in line.
    You two sound entitled as fuck. You're using a program so you can pay less out of pocket up front. That's it! You don't deserve anything extra from Apple for buying on credit.
    The best way to lie is to tell part of the truth.
    ... And that is part of the truth…
    What is the other part(s)?
  • Reply 17 of 38
    stanthemanstantheman Posts: 332member
    Mike Wuerthele said:
    stantheman said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    Upgrade Program participants should have their orders filled first, because their orders were placed 12-18-24 months earlier than customers placing one-time orders in September. Not only would that policy be fair, but it would also cause a LOT more people to join the program. Apple could effectively charge for a better place in line by reserving the first units for the most loyal buyers.
    Sure, they could, and it would probably in fact have that effect -- but Apple doesn't promise head of the line at this time. 

    I suspect they won't, either. There's press benefits in the media for massive lines at Apple stores for the new phone, which you wouldn't have if the AUP members take all of the first run. Plus, I think the carriers would be pretty pissed about it.
    1) I know that Apple doesn't offer this service right now, or I would not have suggested it. You should have figured that out. 2) You seem to think that Apple purposely delays shipments to Renewal Program customers to make iPhone lines longer. However, the lines would be even longer if Apple shipped units to Renewal Program customers before filling new orders. So this bogus argument collapses under its own weight. Apple controls every aspect of iPhone launches, and can create or eliminate lines as it wishes. Modifying the Renewal Program would call for adjustments, but wouldn't change that basic fact. 3) You seem to think that Apple's iPhone sales policies are determined by carriers. They aren't.
    edited August 2017
  • Reply 18 of 38
    stanthemanstantheman Posts: 332member
    Soli said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    stantheman said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    Upgrade Program participants should have their orders filled first, because their orders were placed 12-18-24 months earlier than customers placing one-time orders in September. Not only would that policy be fair, but it would also cause a LOT more people to join the Program. By reserving the first iPhone units for Program members, Apple would effectively be charging for an earlier place in line.
    You two sound entitled as fuck. You're using a program so you can pay less out of pocket up front. That's it! You don't deserve anything extra from Apple for buying on credit.
    @Soli - I'm not in the Renewal Program, dude, so I'm not "using" it to save money or get credit. I wrote a comment, which you did not take at face value. I said that if you order an iPhone today for delivery 12 months hence, Apple should set one aside for you before selling it to someone who has been buying Android phones for the past 10 years. If you don't agree, that's great. A calm demeanor and clear logic are not for everyone.
    edited August 2017
  • Reply 19 of 38
    Mike WuertheleMike Wuerthele Posts: 6,585administrator
    stantheman said:
    Mike Wuerthele said:
    stantheman said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    Upgrade Program participants should have their orders filled first, because their orders were placed 12-18-24 months earlier than customers placing one-time orders in September. Not only would that policy be fair, but it would also cause a LOT more people to join the program. Apple could effectively charge for a better place in line by reserving the first units for the most loyal buyers.
    Sure, they could, and it would probably in fact have that effect -- but Apple doesn't promise head of the line at this time. 

    I suspect they won't, either. There's press benefits in the media for massive lines at Apple stores for the new phone, which you wouldn't have if the AUP members take all of the first run. Plus, I think the carriers would be pretty pissed about it.
    1) I know that Apple doesn't offer this service right now, or I would not have suggested it. You should have figured that out. 2) You seem to think that Apple purposely delays shipments to Renewal Program customers to make iPhone lines longer. However, the lines would be even longer if Apple shipped units to Renewal Program customers before filling new orders. So this bogus argument collapses under its own weight. Apple controls every aspect of iPhone launches, and can create or eliminate lines as it wishes. Modifying the Renewal Program would call for adjustments, but wouldn't change that basic fact. 3) You seem to think that Apple's iPhone sales policies are determined by carriers. They aren't.
    1) I knew that. I'm just curious why you think that this is a good idea.
    2) If I meant that, I would have said that.
    3) See #2 -- but Apple does rely on them for service and for sales channels.
  • Reply 20 of 38
    SoliSoli Posts: 10,034member
    stantheman said:
    Soli said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    stantheman said:
    pbrutto said:
    This is all well and good to me (full disclosure, member of the program). BUT: if, like last year, I cannot even preorder one due to the upgrade program debacle.....what’s the point?
    Upgrade Program participants should have their orders filled first, because their orders were placed 12-18-24 months earlier than customers placing one-time orders in September. Not only would that policy be fair, but it would also cause a LOT more people to join the Program. By reserving the first iPhone units for Program members, Apple would effectively be charging for an earlier place in line.
    You two sound entitled as fuck. You're using a program so you can pay less out of pocket up front. That's it! You don't deserve anything extra from Apple for buying on credit.
    I'm not in the Renewal Program, dude, so I'm not "using" it to save money or get credit. I wrote a comment, which you did not take at face value. I said that if you order an iPhone today for delivery 12 months hence, Apple should set one aside for you before selling it to someone who has been buying Android phones for the past 10 years. If you don't agree, that's great. A calm demeanor and clear logic are not for everyone.
    Let me put this another way: That's fucking stupid and makes no sense.

    The deal with Citizens One is that it allows you upgrade your iPhone through their system:
    1. after 6 months from your original purchase
    2. after 12 payments to your original purchase
    3. if you agree to hand over your original iPhone
    4. if you pass another credit check
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