Wait, Is The iPhone X Expensive?

While analysts are divided over the future demand for the latest iPhone, some are now prophesizing that hey, consumers might be turned off by a stupid expensive price tag. Like a $1,579 smartphone. Sinolink Securities analyst Zhang Bin walked back his iPhone X sales forecast on Monday, predicting in a report that Apple will ship 35 million of the devices in the first quarter of 2018, which is about 10 million less than his original estimate.

"After the first wave of demand has been fulfilled, the market now worries that the high price of the iPhone X may weaken demand in the first quarter," Zhang wrote, Bloomberg reported.

Monday's report had a bleak ripple effect Apple shares. Bloomberg noted that Lens Technology Co, Shenzhen Desay Battery Technology Co and Largan Precision Co all took a hit on Monday. "Lens recovered some of the losses on Tuesday, while Largan continued to slide," Bloomberg reported, noting that Shenzhen Desay "was little changed."

JL Warren Capital LLC also predicted that iPhone X sales will take a hit in the first quarter of next year, down to 25 million devices from 30 million in the the last quarter of 2017. In a message to clients on Friday, the research firm cited the costliness of the new iPhone "and a lack of interesting innovations," according to Bloomberg.

And Taiwanese newspaper Economic Daily News reported that Apple's iPhone X forecast for the first three months of 2018 was lowered to 30 million devices from 50 million, according to "unidentified supply chain officials."

Loop Capital and Jefferies analysts are more confident of consumer willingness to shell out $1,579, the former predicting that iPhone X sales will hit 40-45 million in the first quarter of 2018 and the latter predicting about 40 million in that same time period.

Tim Cook was optimistic, albeit vague, back in November when questioned about the demand for the $1,579 phone. "The ramp for iPhone X is going well, especially considering it being the most advanced iPhone created," he told Morgan Stanley analyst Kate Huberty during the company's fourth quarter earnings call.

Cook also attempted to rationalize spending $1,579 on a slightly more sophisticated rectangle by comparing it to the purchase of a fancy cup of coffee. "An iPhone X costs less than one coffee per day at one of those nice coffee places," Cook said during the earnings call, drawing a comparison to those who pay for the iPhone X on a monthly payment plan.

And if you're really committed to the planned obsolescence cycle, you'll surely have no problem sacrificing those fancy pastries for next year's new iPhone. But for those disinclined or unable to drop $1,579 on a new phone, there are a number of great, affordable alternatives.

[Bloomberg]

WATCH MORE: Tech News


Comments

    And we all remember the last time an analyst got it right.

    And I can't really comment as I refuse to pay more than $300 for a phone.

    I certainly would have gotten one but whether I can afford it or not, that is too expensive for a phone.

    Wait, Is The iPhone X Expensive?

    In my opinion, yes.

    Samsung's flagship - Note8 - undercuts the X's highest spec model by a few hundred dollars retail, and even that is quite expensive...

    I was fortunate and waited for an eBay sale to get an S8 - originally it was $1149 RRP, and I got it for $800 Australian stock.
    Without even trying, comparatively they go online for around that price, nine months after it's release.

    In comparison, it had only be on the market for four months when I bought mine.
    iPhone's hardly decrease in price, and marginally after it successors are released.

    Granted, the X has more features, but how does this make any different to handsets several years released ago when they got better and sold for around the same price, factoring in inflation...

    The flagship Nokia's went online for around $600~700 for current models.
    I got the iPhone 4 and the 5 for $650, though I paid slightly over $900 for the 6S.
    The 7 was well over $1000 and I held back, getting the S8 instead.
    These were current models upon purchase. There appears to be a bit of a theme here...

    It cuts both ways; if Apple chooses to source costly or difficult components and their engineering complicates production, the unit price shouldn't be passed onto the consumers.
    Having said that, if people are happy to fork out the cash, kudos to Apple.

    Expensive is a subjective thing really. If you're earning a lot of money then it's probably not, if you're a lower income earner then yes, it's expensive.

    Also compared to what you're getting for the money and the alternatives on the market. It is the most expensive phone available for the masses (I'm not including those bullshit gold plated, diamond encrusted shit that kicks around for the celebrities).

      I earn a lot of money, i still wouldn't drop 1.5k on a phone. Just because someone earns a lot doesn't mean they are fine with spending their money on overpriced junk.

        No doubt. Personal preference also comes into play, but lets say you're someone who like cars. So you buy an 80k car. Someone with a lower income would consider that very expensive for something that can be purchased for 20k and does the same job.

    I didn't like the low resolution "super retina" display or the 5mm all round bezel.

Join the discussion!