Published in Mobiles

iPhone won’t start at $1200

by on07 September 2017

The most expensive might get close

There has been a lot of discussion that the next generation iPhone, the one that many call the iPhone 8 (7S), will cost as much as $1200, but we can confirm that this will not be the starting price.

The iPhone 7 with 32GB - the cheapest onel starts at $649 while the most expensive iPhone 7 jet black with 256GB sells for $849. The iPhone 7 Plus starts at $768 for the 32GB while the normal color and jet black 256 GB version plus sells for $969.

There is a strong indication that the iPhone that launches next Tuesday will be more expensive. They will sell for slightly more but they won’t start at $1200.

This would be close to a 100 percent price increase. The strategy applied by Apple traditionally, was to slowly increase the price, a bit more with every generation.

Now some of the UBS analyst colleagues have come to the same conclusion. It won’t cost $1200 it's probable that there will be a price increase, compared to the previous generation.

Ever since the  iPhone 5 that launched five years ago in September 2012, Apple charged at least $649 for a new entry level memory iPhone. US consumers think they are paying $199 for the same phone since they simply pay that up front to their carriers, and then have a saucy monthly bill to pay for at least two years.

Apple’s brilliant lease plan, where the customer only has to pay $32.41 monthly for 24 months, and own an iPhone 7, works really well too. It seems seamless and logical to do, and with interest rates so low, it works for both Apple and end users. Verizon, for example, currently charges $27.08 a month for 24 months with  a zero down payment to get an iPhone 7. If you work out the sums, you end up paying $649.92 in two years. This is actually quite a good deal.

The iPhone Upgrade Program with the new phone might increase by a few more dollars and the iPhone 8 (7S) will definitely be a popular choice with top US carriers. Get your wallets and credit lines ready, please.  

Last modified on 07 September 2017
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