The launch of iPhone 15 is now upon us, and according to Bloomberg’s Mark Gurman Apple wants to redefine high-end of the smartphone market, raising the price with new materials (titanium) e cameras more advanced. Aiming to raise the average price of iPhones sold – and therefore its turnover. And bringing new technologies into the hands of users.
iPhone 15, Apple wants to raise the price with titanium and cameras
Mark Gurman, who always has an ear in Cupertino, explains that when Apple decided to abandon the iPhone sales volume race in 2016, many industry observers were surprised. However, this bold decision has proved extremely profitable for the Cupertino-based company. Instead of aiming to sell more and more iPhone units, Apple has decided to increase prices and focus on selling high-end devices. Something he wants to try again this year, it seems.
In 2017, Apple launched the iPhone which seemed like a high cost for a smartphone at the time. But the entire industry followed Apple in this direction. Today, the iPhone 14 Pro Max costs money $1,599 with one terabyte of storage, a price that would have seemed unthinkable just a few years ago.
Apple’s strategy worked amazingly. While annual iPhone unit sales have remained fairly stable over the past seven yearsthe company’s revenues grew by approximately $70 billion in the same period. So much so that Gurman reports how the company stopped reporting unit sales of devices in 2019, preferring to focus on the revenue generated by each product.
From titanium to the camera: the price of iPhone 15 grows (especially for the Pro)
Apple could get another boost in its revenue tomorrow thanks to the increase in prices of high-end iPhones in select markets. The company has announced plans to offer more expensive components such as titanium frames, new camera sensors and more storage.
Furthermore, Apple intends further differentiate the iPhone 15 Pro models compared to the standard models. Pro versions will offer better battery life, faster USB-C data transfer speeds, thinner bezels, high-quality screens, a customizable action button, and a faster chip. These extra features could fully justify the $200-$300 price gap between the standard models and the Pro models, according to Gurman.
But the news doesn’t stop there. Apple is also introducing an innovative feature to its flagship modelthe iPhone 15 Pro Max: a periscope lens that allows for a wider range of optical zoom, going from 3x to around 6x.
The difference between the standard iPhone and the Pro versions has never been more marked.
The price of accessories also rises
According to Gurman’s analysis, it’s not just iPhones: Apple is pushing its customers towards more expensive accessories. For example, the new Apple Watch will receive a significant performance upgrade. But to get a titanium case, a larger screen and longer battery lifeusers will have to opt for the Ultra model, which will have a higher price.
Additionally, Apple is trying to drive customers towards the AirPods that support USB-C chargingwith the charging port available, for now, only on the most expensive model.
Compared to the past, this strategy of increasing prices and differentiating products comes at a time when the smartphone industry has seen a slowdown in demand. Additionally, there are concerns about the Chinese market, significant for Apple, where government agencies have restricted the use of iPhones and competition from Huawei has grown.
But Apple has shown time and time again that it understands when it’s time to move the price bar higher. And it points to the fact that more and more users are looking for premium and uncompromising experiences. Or at least, this is what Gurman leaked: to be certain, we will have to wait for tomorrow, September 12th. We will keep you updated live throughout the Apple event.