Yes, iPhones are a big deal, which we discussed last week when the 10th anniversary models were unveiled. Since introduction, the iPhone has represented a HUGE percentage of Apple’s total revenues. Let’s examine iPhone dominance and pricing over the years.
After a Decade: iPhone Dominance and Pricing Over the Years
As the following chart from Statista shows:
“Since 2007, Apple’s iPhone sales have consistently increased. It went from 40 million units sold in 2010 to more than 212 million in 2016. iPhone sales worldwide exceeded 136 billion U.S. dollars in 2016. As sales increased, the iPhone gained within the company. Becoming the most successful Apple product to date. The iPhone’s share of the total revenue jumped from 25 percent in the beginning of 2009 to 70 percent in the first quarter of 2017. As of the first quarter of 2017, iPhone’s share of revenue hit 69.4 percent. Much of the iPhone’s success can be attributed to Apple’s ability to be competitive, with new releases and updates.”
Apple accomplished these results despite large price increases. According to Niall McCarthy, writing for Statista:
“The unveiling of the iPhone X was the most eagerly anticipated part of Apple’s launch extravaganza [on September 12, 2017]. The new handset made a daring design move in ditching the home button. While it now boasts a facial scanner. As well as the ability to make animated emojis. For some fans, the enthusiasm of the event and the enormous hype surrounding the iPhone X will be tampered by the device’s exorbitant price tag. The iPhone X cost between $999 and $1,149 for U.S. users. That makes it the most expensive iPhone to date. Indeed, costing more than the iPhone 6s and 7 Plus, both of which hit the market at $949 (256GB). In 2007, when Steve Jobs unveiled the original iPhones, the 4GB version of the device cost $499 and the 8GB version cost $599 (both requiring a 2-year contract).”
iPhone Share of Apple Sales Worldwide — 2009-2017
The price of the new Iphone does raise eyebrows, and personally I don’t know who in their right mind would pay $1,000 for a phone. However, Apple is not stupid and I am sure that they chose this price for a reason. In addition, over the past 10 years, our phones have become increasingly more important to our every day lives, so I feel like it is an “investment” that people will believe is worth it because it will make their lives easier or better.
Personally, I am interested to see how much higher Apple will raise their iPhone price with years to come. According to the chart by Statista, the trend has increased enormously in such a small frame of time. At some point, I believe consumer demand will dramatically decrease if the price continues to skyrocket the way it has been in past years.
What I found the most interesting was that the very first iPhone was over double the price of the second, which came out only a year earlier. The prices for iPhones have continued to increase, as well as the demand for the phones. No matter how ridiculous the prices may seem there will always be people waiting to purchase them. Many consumers will buy other Apple products to be able to sync all their devices together. Apple has been able to build an empire within an empire with iPhones.
$1,000 a phone seems ridiculous; you could by a macbook air for that price! I honestly think that Apple has overpriced this phone immensely, but that doesn’t mean that people still won’t buy it. As of right now, because the Iphone X presents an Iphone that is revolutionary compared the others released in the past 5-10 years, they are smart to raise the cost. However, I think that if they continue to raise the price of the phone, as they have done in the past, it may come back to hurt them. The only question remains is how far those loyal to Apple will go to pay for the next phone.
Wow! Wish I had stock in Apple! The statistics provided in this post don’t come as a shock to me. Whenever, I have a conversation about cellphones the discussion is always about what number iPhone the person has. You have to give Steve Jobs and his successor Tim Cook, credit for their ability to enhance the technology of the iPhone and to market the different versions of it so well throughout the years. Yes, the iPhone X is expensive, but what is cheap nowadays. I am saving up to get one!
The main reason for this is iPhone has a different positioning in the minds of people. Initially, it was launched as a phone but with time it has become a status symbol for many. As they came up with, ‘If you don’t have an iPhone, you don’t have an iPhone.’ The focus on iPhone has increased dramatically from Apple’s point of view as they are well aware about the consumers taste and want. There are people who are termed as ‘Apple Fanboys’ and they will buy anything that Apple produces because it gives them a sense of satisfaction and happiness. Apple has been really slow on upgrades that not many people use like ‘Mac Pro’ or “Trash Bin’ as people like to term it as because that’s a niche market and not many people buy it. Slowly, Apple has become has company whose main aim is profits and little bit of innovation here and there, something that’s not wrong but really different from the Steve Jobs Era.
The iPhone is one of the most popular phones in the entire world, along with the samsung S8 and Note 8, which both act as the direct competitor of Apple’s phone. I do not believe the idea of the prices being this high is so far fetched. The amount of technology that is put into these phones is utterly insane. The Note 8 is relatively the same price as Apple’s, so it really is not a huge deal. Apple knows people will buy the phone, and loyalty has a lot to do with it. I would say a big reason I haven’t switched over to a samsung phone is because of the compatibility with my tablet and phone. It is so convenient and as long as I have an Apple laptop, I will own an Apple phone.
With the demand for phones now, due to social media and communication necessities, I think that apple was smart for putting such a large price tag on these upcoming Iphones. People anticipate the release of the Iphones, and there are those loyal consumers who will continuously purchase these phones. In addition to that, these new versions provide features that no other phone contains, so consumers are getting what they pay for.