$1000 Flagship iPhone


By

The New York Times:

Chief among the changes for the new iPhones: refreshed versions, including a premium model priced at around $999, according to people briefed on the product, who asked to remain anonymous because they were not authorized to speak publicly.

I think the assumption is Apple will still launch updated iPhones at typical pricing. I'm sure they will keep the iPhone 7 around at a discounted price, but I'd hope if Apple is going for a new premium tier that it will offer an iPhone with similar performance, but less bells and whistles.

Anyway, assuming the rumors of a $1000 iPhone is accurate, I'm curious if this will be the base model pricing. The 32 GB 7 Plus is $769, while the 256 GB model is $969. Apple makes its highest margins on the larger capacity iPhones as it certainly doesn't cost $200 additional for that 256 GB upgrade. Apple could give up some margins without the device seeming excessively expensive. Plus, as time goes on, component prices should lower and help improve margins.

If the iPhone 8 was say 128 GB for $1000, that's not too big of a surcharge over the current iPhone 7 Plus for those who want the latest and greatest.