Apple Unveils Insanely Expensive iPhone X — What’s Next?

Analysts have been split over the recent announcement of Apple’s new $1,000 iPhone. Continually losing marketshare to its Android competitors, Apple has been recently struggling to develop new innovations to drive its smartphone line.

Whether this new step in technology represents a positive step for the company and its present valuation remains to be seen. However, Apple’s brazenness in rolling out such an expensive product definitely demands a second look.

Going Beyond the Price Point

Consumers have historically shown themselves to be unable or unwilling to move across certain price points when it comes to phones. Though this amount has been steadily increasing over the last decade, it has been hard won — with phones at the very end of the high end market generally being ignored by the public.

As of 2017, the average price point for smart phones still hovered between $600 to $800, and most want to spend less than $600. An MSP of $1,000 is substantially higher than this average amount, and may be higher than many consumers are willing to pay. In fact, to increase adoption, the sub-$800 Google Pixel launched with a separate financing option in place.

With an increase in price point, consumers also expect significantly more from their devices. In the mobile world, Apple has frequently come under fire for having similar or worse specifications than older or lower priced Android phones. They have additionally been scrutinized for perceived steps backwards in technology, such as the loss of a 3.5mm port and the adoption of a shared audio and charging port.

All of this has put Apple in a difficult position, with the need to provide dramatic innovation in opposition of their competitors. It now appears that Apple’s marketing strategy may be to substantially advance their own technology but at the direct cost of a higher MSRP.

The iPhone X vs. the iPhone 8

The iPhone X is particularly notable because it is being released just slightly before the lower priced iPhone 8 and iPhone 8 Plus. Functionally, this means that sales of one may cannibalize sales of the other; consumers may hesitate to purchase the iPhone 8 because they have a fear of missing out on additional features provided by the iPhone X.

Both the iPhone X and the iPhone 8 have very similar specifications, but the iPhone X has a larger and higher resolution display. The iPhone X additionally has improved cameras, with a complex front camera that can take superior portraits. It also has built-in facial ID authentication in lieu of touch ID, while the iPhone 8 only comes with touch ID. However, the iPhone X also has approximately an hour less of battery life during active use.

Criticisms of the iPhone X

Though the phone may not yet be released to the public, the iPhone X has still gathered a substantial amount of criticism. Most significant is the criticism against the “notch,” an irregularly shaped rectangle that is cut out of the top of the frame and reportedly disrupts the viewing of both websites and applications. The expansive edge to edge screen seemed to be slightly redundant when the notch is considered, and has dissuaded some consumers due to aesthetics alone. At the same time, for those who embrace it, this could be a distinct and unique visual feature.

Apart from visual aspects, the technical specifications of the phone have left some wanting. The phone features an updated processor and operating system, with a 12 MP camera and an all-glass body said to be composed of the most durable glass Apple has used yet. Other features include wireless charging and, of course, the face recognition solution. However, it should be noted that face recognition has effectively replaced touch ID, which for some could be less than optimal.

Following the release date of the iPhone X, Apple stock took a substantial plunge. This was both due to a delayed release and rumors that its technology may not work properly for facial recognition. However, this has also spurned some analysts to theorize that now may be the perfect time to purchase Apple stock as it may rise significantly after the delivery of both the iPhone X and the iPhone 8, should they sell well and deliver on promises.

With all this in mind, it’s important to note that the $1,000 iPhone X may be a leader product that is intended to sell very lightly on the market but serve as an introduction to new technologies such as Apple’s new face scanning biometrics.

Once the iPhone X had exited out of production the technologies used in its development will likely be fine-tuned and optimized in future models, which could lower the costs. At the same time, it can be difficult for a company to walk back a target price point, as it can come with the implication of an inferior product. Regardless, the true test of the technology will be whether or not it sells.

Regards,

Ethan Warrick
Editor
Wealth Authority


Most Popular

These content links are provided by Content.ad. Both Content.ad and the web site upon which the links are displayed may receive compensation when readers click on these links. Some of the content you are redirected to may be sponsored content. View our privacy policy here.

To learn how you can use Content.ad to drive visitors to your content or add this service to your site, please contact us at [email protected].

Family-Friendly Content

Website owners select the type of content that appears in our units. However, if you would like to ensure that Content.ad always displays family-friendly content on this device, regardless of what site you are on, check the option below. Learn More



Most Popular
Sponsored Content

These content links are provided by Content.ad. Both Content.ad and the web site upon which the links are displayed may receive compensation when readers click on these links. Some of the content you are redirected to may be sponsored content. View our privacy policy here.

To learn how you can use Content.ad to drive visitors to your content or add this service to your site, please contact us at [email protected].

Family-Friendly Content

Website owners select the type of content that appears in our units. However, if you would like to ensure that Content.ad always displays family-friendly content on this device, regardless of what site you are on, check the option below. Learn More