Tim Cook Says If You Can Afford Nice Coffee You Can Buy A $1579 Phone

The iPhone X costs more than any phone Apple has ever sold, starting at $1579 a pop. But Apple expects people will buy truckloads of them anyway, according to the company's earnings release today, and CEO Tim Cook seems to believe you can afford one, too, because if you break a monthly payment plan down, it's "less than a coffee a day at one of those expensive coffee places".

Image: Unsplash

And Cook is right. In the US, a fully-loaded iPhone X ($US1000) will cost you about $US56 ($73) a month through Apple's upgrade program, and that breaks down to less than $US2 ($2.59) a day. But by Cook's logic, why not charge $2000 for a phone? That's less than $4 a day - the price I pay for a small latte in New York. Don't get me started on the premium I pay for iced drinks, or the $1 extra I have to pay for goddamn soy.

Apple is banking on making more money than ever before over the coming holidays - it's estimated it will make as much as $US87 billion ($112.8 billion) in revenue in three months, the vast majority of which will come from phones, and plenty of which will plausibly come from the iPhone X, which finally breaks Apple's pattern of merely updating the components of the iPhone 6.

But looking at the price of the X like this abstracts the real cost. Who would commit ahead of time to paying $1579 for a couple of years worth of coffee? Yet here I am. This week, I will receive a new iPhone X, and just this morning, I paid $4 for an iced coffee from a cold brew drip tower.

In 2007, when Apple first announced the iPhone, Steve Ballmer famously exclaimed his disbelief: "$500! Fully subsidised with a plan?" More than a billion iPhones later, Ballmer's shock is so outdated it's cute - and Apple is again pushing the limits of what people will pay for a phone. This may not be the end of it, either. For all we know, Apple may find yet another way to increase the cost of its phones next year. If the company's estimates for this quarter say anything, it's that Apple believes one thing: It hasn't crashed into the ceiling just yet. People will absolutely shell out for a $1579 phone.

WATCH MORE: Tech News


Comments

    He said no such thing. He was putting cost in perspective.

    But troll bait, and click bait, are the tools of choice here, so no one should be surprised by the headline.

    "IPhone self drive tour" tells you all about the fancy features, not once did it explain how to answer a phone call, it never mentioned a phone call, IT' S A PHONE APPLE!!!!!!.
    IPhone X It's an expensive toy.
    I've got a Lumia 640XL it's the perfect phone, has every feature I need, the only thing that needs to be fixed is an easy phone answer red button to save fumbling through the menu, cost a mere $360.

      If you need to watch a "how to" video to work out how to answer a phone call, you have bigger problems than affording an expensive phone.

      The Lumia 640XL is the perfect phone for me, so therefore it is the perfect phone for everyone!

      I think your Lumia 640XL is an expensive toy.
      $360??? ITS A PHONE KEVIN!!!.

      I've got a phone from Woolies that cost $9.00, it is the perfect phone, has every feature I need, and no fumbling with menus required, it has a dedicated button to answer calls!

      The "iPhone" is a talisman, much like a Buddha charm, but instead of protecting, it's projecting - how much you need a verification of your existence. I'll stick with my 2014 Note 4 - better screen, camera, connection and the inimitable S-pen. Once you've had the real thing, you'd never go back to iStuff.

    By the time I buy all these things that cost less than a cup of coffee a day, I'm going to be drinking the equivalent of 120 cups a day.

    $1600 is $1600. They could equally say "for the cost of a used car..." or "for the cost of a holiday to Bali for two". In fact, between a matginally updated phone and an international holiday, I know which I would prefer.

      No one is forcing you to buy a BMW and a merc and an audi.... Choose what is important to you. I want a reliable phone with good battery life, big screen, fits in my pocket and syncs all my photos/data/info with my laptop.

      I find upgrading iPhones every few years is cheap compared to lots of things I choose not to spend money on. I don't for example own a boat, which is WAY more important to some people than owning a great phone.

      To all the haters........ NO ONE IS FORCING YOU TO BUY AN IPHONE X......

        Hey, if a $1600 phone floats your boat, so be it. I'd rather by an iMac for that money, or an iPad Pro. Because let's face it, an iPad Pro is even less cups of coffee a day.

          Hey, if a $1600 phone floats your boat, so be it.

          He explicitly said he didn't own a boat. ಠ_ಠ

    Also, it isn't the only phone they sell, you can buy an SE for $499, or the Iphone7 or 8, they have a range of phones at a range of prices. You buy the one that suits you, or if none do, you buy something else.

      The SE is fantastic: I bought mine for $440 prepaid from JB Hifi and they organized free unlocking on the sport. Couldn't be happier with it.

      AND it has a headphone port, which makes *me* happy.

    Man everyone hating on everyone. It's a great phone. If your going to use it and mobile's are a part of our life now and makes you feel good go for it. Lumia 640XL was great as well. Limited but great. Everyone has there needs, wants and what they like. Great thing is we have choice. I'm am worried that now Apple is charging this price then everyone will follow. Also if I had the coffee everyday mentality on everything I want I'd be broke.

    when this is how cook tries to justify the the price you know he's as arrogant as ever.

    He's basically saying the phone's not overpriced because we can find a way to pay for it.

    And how much is coffee from "those expensive coffee places"?

      FAKE NEWS ..read the real news, he never said this.

    Sorry, I've already invested all my unbought coffee money in smashed avocado on toast.

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