Last year’s iPhone 7 was sold at an average price of $645. But the price for Apple’s next flagship smartphone will be a whopping $1000 and will earn the Cupertino-based firm more money than ever before.
But even the rising iPhone prices do not indicate a turn-off for the loyal Apple customers. In fact, projections show that users are more than ready to pay the extra hundreds of dollars to get a classic gadget.
There is a possibility of Apple launching three new phones this fall. The first two will be the slightly improved iPhone 7 and iPhone 7 Plus. The other line will be iPhone 8 or what many prefer calling the iPhone X. The most expensive iPhone at the moment is $969 but with many adjustments on the future smartphone, the $1000 price may be justifiable.
More Money for Apple
If the smartphone is effectively rolled out into the market, Apple’s financial power will be greatly boosted, cementing its rating as one of the most powerful smartphone firms in the world.
BMO Capital Markets analyst, Tim Long, wrote that Apple’s 2016 fiscal year saw only 5 percent of the firm’s customers spend money on iPhone priced at $900 or above. But that may change in the 2017 fiscal with an estimated 7% and 16% increase in 2018.
Apple and majority of manufacturers have introduced flexible paying strategies in which customers can purchase the gadget and pay for it in bits.
Investors are happy, what about the customers?
Apple’s latest results and projections have been exciting for the company’s investors. But one question that remains unanswered is whether Tim Cook has pleased both groups.
The thought of selling the next iPhone at $1000 or even more has left investors feeling good. What’s more, the multibillion tech company continues to make profits, recording its highest close in 18 months early this year.
Much of this excitement has to do with strong iPhone sales but there are other forces driving the smiles.
Macs and Apple Watch have both strongly stepped in to generate impressive revenue. The AirPods have also had their own level of impact. According to the Apple boss, AirPods are so “far ahead of anything else on the market today, and (Apple) is working hard to catch up with the incredible demand.”