Monday, 24 July 2017

Would an alleged price hike have a negative effect on the new iPhone?

iPhone 7s, iPhone 8, iPhone 7 Plus

This year is a big year for Apple. With it being the 10th anniversary of the iPhone, people expect something spectacular to come with the unveiling of the next iPhone, presumably the iPhone 8. Whether the “iPhone 8” moniker signals the end of the traditional “S” variant or it will end up as a third option alongside the S variants remains to be seen, but I digress.

The hype is astronomical this year for Apple’s new flagship smartphone. In an article by Gordon Kelly for Forbes, the device is said to follow the same formula that several OEMs have used this year by shrinking bezels, in this case down to 4mm on all sides, to create a larger 5.8-inch screen. In their render of a “finalized hardware design”, it’s shown that Apple may be removing its iconic home button in order to make room for the screen. Rumors state that Touch ID may still remain in a similar location under the display, but further conjecture believes that an elongated power button may serve as both a power button and a fingerprint sensor.

Other notable upgrades to the next iPhone include a dual-camera setup and an L-shaped battery for longer battery life. While this all sounds great on paper, what doesn’t necessarily sound great is how much these upgrades are going to cost consumers, and the consensus so far is that the iPhone 8 is going to be the most expensive iPhone yet, as it’s pegged to start at $1,100 for the base model.

I look at that number and I think, who would buy a phone that costs that much? That’s so much money! And then I glance at my Galaxy S7, which cost nearly $700 last year when I bought it. Granted, I regret spending that much money on a smartphone, especially after a couple of $99 smartphones I reviewed really put some perspective on what a $700 phone actually gets you nowadays, but it still stands that I paid almost $700 for a smartphone and justified it by opting to pay for it in installments. And that’s exactly why I think that $1,100 won’t stop anybody from buying an iPhone 8 if it comes down to it.

Installment plans are, in my opinion, nice to have as an option. I’ve used them for my past few phones and although I’m eventually shelling out just as much money as I would if I purchased a phone outright, it’s easier for me to justify spending $28 a month on something rather than dropping the whole $700. Mostly it just desensitizes things for me.

Also, not all installment plans are created equal. Take Apple’s iPhone Upgrade Program, for example. If you go directly through Apple, AppleCare+ is included in the price, the phone works with any carrier, and you have the option to trade up to a new iPhone just 12 months later, or keep the same iPhone for 24 months to pay it off and own it. It’s not a bad trade, especially considering that I paid $4 less a month for my Galaxy, but paid $12 extra for “good” insurance. Ultimately, I paid $8 more for less options and benefits. Depending on how much it costs per month for the iPhone 8 on this plan, it very well could justify the price for many people with all the benefits that come with it. I do think that the price may turn off people who prefer to buy their phones outright.

It’s looking more and more like the iPhone 8 won’t be only iPhone revealed this September, however, meaning that even if the iPhone 8 is as pricey as it’s speculated to be, people may have other options. Allegedly, the iPhone 7s will still be a thing, and the iPhone SE might even receive an update of its own. Between the SE, 7s, and 8, Apple would have something for just about everyone. Despite its high price tag, I have a feeling that Apple is going to fare just fine.

Readers, what are your thoughts on the rumors of the iPhone 8’s price hike? Is $1,100 too much for a smartphone?



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