$1400 iPhone 8 is outrageously priced, if the rumors are true…
I was reading an article from the The Wall Street Journal over the weekend and came across an article regarding the potential 1400 iPhone 8 that is slated to come out some time in the fall.
Before I started getting hate mail, I own an iPhone and have had an iPhone since they first came out.
Apple has been the leader in most markets for the past decade. They have been able to secure and maintain premiums on most of their products.
I understand the new iPhone is going to be quicker, have a larger screen (OLED?), more storage, etc. However, that does not mean that the new price will succeed.
The average American couple typically spends between $110-$160 per month for their cell phone plan. This equates to $1,320-$1,920. Let’s assume that same couple decide to go big and both purchase the new iPhone 8. As the happy couple walk back to their car, it finally dawns on them that they just signed up for 24 months of payments. Their monthly obligations just increased by $115.
Data from: http://www.usinflationcalculator.com/inflation/current-inflation-rates/
While buyer power continues to decrease and wages have been stagnant, Apple has continued to ramp up pricing.
Here are a couple links discussing the $1400 iPhone 8.
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