Did apple retail prices get too high in 2018 consumers say yes. – slashdot

Apple has for years been a premium brand that rarely, if ever discounted products. Every year, the company could raise prices on products, and consumers would not only happily pay, but stand in long lines for the privilege of doing so. From a report: So when Apple started putting misleading, but seemingly consumer-friendly posters in front of Apple Stores at the end of 2018 offering a new iPhone model for $300 off (with trade-in of your current phone), you know something different happened for the company this year. Consumers fought back. Many analysts have reported that in the wake of poorer-than-expected sales for this year’s crop of iPhones, Apple cut back on production, including on the $1,100 iPhone XS Max, the $999 iPhone XS and the XR, the "budget" model that replaced the previous entry-level new phone, the $349 SE.

The price for the XR (the one Apple is hawking discounts for): $749.

"This should be a wakeup call for Apple," says Daniel Ives, an analyst with Wedbush Securities. "They swung, and they really missed." The prices on the new phones are "far too high," says Terry Walton, a tourist from Auckland, New Zealand. He has an iPhone 7 and didn’t even consider any of the X-series iPhones because it still works just fine. Upgrading "didn’t enter my mind at all," he says. It wasn’t just iPhones that got price hikes. Apple also upped the cost of the top-of-the-line iPad to $1,000 as well (or over $2,800 for a loaded model) and added $300 to the cost of the Mac Mini and new MacBook Air computers.

I manage *thousands* of the damn things, phones, Macs and iPads. But I honestly wouldn’t ever buy one or use one myself. My "work" iPad sits doing CCTV all day (and falls over with alarming regularity – there is obviously no application controls and one program sucking up RAM can easily cause it to fall over and "restart" the entire iPad once every 24 hours at least. It also can’t manage four simultaneous H264 HD-level streams as it runs out of RAM on the fourth and kills the app).

I finally convinced my employers to stop using them for anything when I proved that they’re not compliant with UK consumer, company or data protection laws. By literally failing to get them to acknowledge a letter of complaint to their head office (Ireland), and then them refusing to do ANYTHING – even reply to questions requesting statutory complaint / data retention information. I strongly suspect that they are not GDPR compliant, as they weren’t ever DPA compliant. They make noises to suggest such, but they have never given a statement to that effect, and refuse when asked.

While I have no doubt that lowering prices would significantly increase demand, I wonder how much raising prices even more would decrease demand. Many many people are completely committed to iPhones, and will be willing to pay much more than the current prices to not have to switch to Android. I wonder if Apple would actually make the biggest profit by fleecing these people instead of going after people who are more price sensitive and are willing to switch or already have switched to Android.

Increasing prices even further would kill the 1-2 year upgrade cycle they try to push everyone into. Why pay $1500+ for a new phone when your 2 year old phone still works fine and is maybe even subjectively superior to the new model due to "upgrades" that affect usability? People are already starting to hold on to their iPhones longer. It’s part of the reason why Apple worked with all the carriers to start those plans that are effectively 1-2 year leases where you upgrade your phone each year to the new model.

The difference between $1k+ Apple phones and Lamborghini’s is that most people can afford Apple phones. Too expensive doesn’t mean they cannot afford it, it means they would rather spend the money on something else. Buying a $1500 phone every other year is about $60 per month. That is far less than a standard cable bill. Compare that to a $3500 monthly Lamborghini car payment and it’s clear why they are fundamentally different. I’d guess about two thirds of the US population can afford a $1k+ iPhone, considering about 70% of them can afford cable TV. Whether or not that is a good idea is another matter.

So, because people can afford cable TV, they can afford a $1,000 phone? That makes no sense, and ignores the fact to actually use your $1,000 iPhone you need a $50-100/month cellular plan on top of your "affordable" $42/month ($1,000/24 months) iPhone… But then again, people spend ("can afford") several hundred dollars a month on food, so they can obviously afford $90-140/month for a phone and phone service. /SMH