After the $1,000 iPhone, will Apple offer an even more expensive model?

Apple is expected to unveil its 2018 iPhone vintage on Wednesday, probably with three models, with which the Apple company, thanks to even higher selling prices, hopes to continue to increase its profits despite a saturated market.

After the $1,000 iPhone, will Apple offer an even more expensive model?
By its habits of discretion, the American giant has distilled only little clues regarding the presentation planned at its headquarters in Cupertino, Silicon Valley, but like every year, speculations are well underway on the new products presented: iPhone of course, but also iPad or AppleWatch, and its connected watch.

Analysts do not expect a technological revolution but will be very attentive to Apple’s choices regarding the price of its new iPhone. Last year, Apple introduced three models, including the expensive iPhone X (“10”) and its facial recognition unlocking, marking the smartphone’s tenth anniversary and sold from $999 in the United States.

This year, experts expect the company to unveil improved versions of the model (faster with a larger screen) which should, therefore, be even more expensive and would confirm Apple’s choice to continue to do very high-end. “We expect Apple to drive up the average selling prices of smartphones even higher,” say analysts from Counterpoint Research.

This strategy has so far proved successful: it allows you to increase your turnover despite the saturation of the global market. Thus, according to analysts, the iPhoneX sold less than some previous models — notably the iPhone 6 –, but it returned as much in financial terms over their first ten months of commercialization, reassuring investors at the same time.

Chinese competition

It leads some analysts to say that Apple can easily be satisfied, financially, with a relatively small but reasonably stable market share. With about 12% of the world market, the apple company lost its second place in the second quarter, dethroned by the Chinese Huawei, which is growing at a breakneck pace.

Not so sure, notes analyst Anshul Gupta (Gartner), who points out that world leader Samsung (19.3% market share in the second quarter) and its Galaxy S9 model ($1,055) introduced in February did suffer from Chinese competition and near stagnation in the market, which pushed down profits in the second quarter.

For many analysts, Apple could play on several tables, with both one or two ultra-premium models but also a less expensive model, even if rumors about its price vary significantly for the latter, between 600 and 850 dollars.

IDC expects smartphone sales to decline slightly in 2018 to 1.46 billion units, with a moderate recovery from 2019 onwards, thanks to the Indian market, the improvement of the Chinese market or the arrival of the high-speed 5G mobile Internet.

Apple’s presentation comes at the height of the trade war between the United States and China, a significant market for Apple, which also assembles many of its devices there. Its CEO Tim Cook has already warned that a new round of US customs duties on Chinese imports could increase the prices of individual devices, such as watches for example.