One of the enjoyable moments in the announcement of the Samsung Galaxy S8 was the price of the flagship smartphone. The cheapest version of the device costs $720, which is comparable with the price of the iPhone 7. For many this policy Samsung was a surprise, since initially it was assumed that the device will cost more than the flagship of Apple.
At the same time, iPhone 8, is expected to become much more expensive than last year’s iPhone in its basic configuration. According to rumors, Apple will ask for new $1000 and some analysts fear this. However, even if the price of an Apple smartphone this year will exceed $1000, the company will not experience problems with sales.
According to Morgan Stanley analyst Katy Huberty, the average sales price of the iPhone in 2018 will rise to $753 with the release of the premium versions of the smartphone. However, buyers are willing to pay more for the new model, as even now expensive versions are more popular. For example, the iPhone 7 Plus, which costs $100 more, sold better than the iPhone 7.
The last few years Apple kept the iPhone on the same level. Just last year the price increased by $20 for the Plus models in comparison with devices of 2015 because the company has doubled the amount of flash memory for 4.7 – and 5.5-inch versions. The increased average selling price iPhone and delivery vehicles also increased. Thus, people are willing to pay a premium price for Apple’s smartphone.
Even if the price of the iPhone 8 will exceed the psychological mark of $1000, it will not be a big problem for buyers. Many people purchase a smartphone on credit, and in major markets, Apple has launched the Apple Upgrade Program – installments for two years with extended warranty program and the ability to obtain new flagship a year after purchase.
In emerging markets, of course, this will be more difficult, not to mention the fact that this could play into the hands of Samsung. In any case, whatever Apple asked for the iPhone 8, it will be sold much better than any smartphone this year. Prepare your wallets!