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Every year Apple changes a lot of things about the iPhone. Over the years we’ve seen it get thinner, lighter, faster, and better. But there’s one aspect of the iPhone that Apple seems to be unwilling to reinvent, and that’s the price.
A brand new, unlocked, hot-off-the-production-line 16GB iPhone 6s costs $649. Back in 2011, a brand new, unlocked, hot-off-the-production-line 16GB iPhone 4s would have set you back $649. In that time Apple has tried to shake up pricing by offering a cheaper iPhone – the iPhone 5c – and introduced a higher-priced “Plus” range for those who have really deep pockets.
Interestingly, the “c” configuration of iPhone only hung around for one upgrade cycle, which suggests that users don’t want to buy what is perceived as a budget iPhone.
But data suggests that consumers are beginning to see the iPhone has too expensive. In fact, UBS analyst Steven Milunovich is predicting that while Apple may well have sold a record 75 million iPhones over the holiday period, a third of those sales will be of last year’s iPhone 6/6 Plus models, which consumers can pick up for $100 less than the current models.
This time last year only about 25 percent of buyers were choosing the to buy the previous year’s model.
If this is true then the message for Apple is clear – people want the iPhone, but an increasing number are willing to put up with last year’s model in exchange for $100 off the price.
And $649 for the base model is a lot of money. Take the average lifespan of the device to be two years, then that works out at around $0.90 a day. Push the boat out and buy the 128GB “Plus” model and that daily cost jumps up to $1.30 a day.
