Cupertino, we have a problem: raising iPhone prices is not a good idea -


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Tuesday, 20 March 2018

Cupertino, we have a problem: raising iPhone prices is not a good idea

A new study conducted by the firm specializing in market research Nomura Instinet highlights something quite curious: that Apple continues to raise the prices of their iPhone can only cause problems in the long run for the brand of the bitten apple, as we read on CNBC

What problems? Well one very obvious: that the more expensive an iPhone is, the less demand there is , something that can already be noticed in 2018. And is that the orders of the supply chain do not lie and the iPhone X has stopped being manufactured because there is already enough stock for the supply.

According to the firm's analyst, Jeffrey Kvaal:

    We do not think it's a coincidence that the most expensive iPhone on the market is the one that is weakening. These data reinforce the theory that smartphones could have reached their upper limit in the market.

More expensive phones translate into less sales

But of course, it would be absurd if we only pointed to Apple in this sense when the Samsung Galaxy Note8 or the Google Pixel 2XL are part of the smartphones club of more than one thousand euros .

Well it seems that yes, according to the author the market is becoming less elastic , or what is the same, that users are not willing to adapt to these price variations. Even with promotions, financing, etc., it is selling more.

The consequences with the new top of range have not been expected and the pre-reservations for the Samsung Galaxy S9 have already fallen by 30% over the previous year.

These rumors and reports affect the confidence of Apple investors, but also to Apple's strategic forecasts . Yesterday we knew that Apple could have acquired up to 270 million displays for the iPhone 2018 , but perhaps you should be careful because the sales forecasts do not stop falling, standing according to Nomura Instinet in 221 million, very close to the 224 predicted by Wall Street .

However, these price increases do not affect all places equally : while in the West we see queues in Apple Stores and a certain hype, it is in emerging markets such as China or India where the decline in sales is noticeable.

Precisely for that reason Apple strives to launch other ranges and this 2018 will not be an exception, we will see a low cost iPhone and even in a week could present an iPhone SE 2, which yesterday leaked what could be his first photo .

Anyway, Apple seems to satisfy the plan for now, making more money than ever despite selling fewer terminals : the iPhone X is a money-making machine . 

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