Why talk of a $1000 iPhone is overblown

Jan Dawson, Tech.pinions:

There’s been a lot of talk about Apple releasing a $1,000 iPhone next week, and a lot of pushback from financial analysts in particular on the idea that people would actually buy such a thing.


In the US, the vast majority of premium smartphones are sold through the major wireless carriers, with the largest four being AT&T, Sprint, T-Mobile, and Verizon Wireless. Each of those companies has been through a transition over the past few years away from the traditional subsidy model, under which customers paid a portion of the price of a phone up front, to a combination of installment and leasing models, where the cost of the phone is broken up into monthly payments.


Compare that to current monthly prices for the base model iPhone 7 Plus, a phone that costs roughly $200 less to buy outright, which run from $25 to $36, and you’ll see that the real difference in price between a $770 phone and a $1000 phone isn’t $230 for most customers but a monthly price difference of anything from zero to $15.

Most interesting to me:

On top of that, bear in mind that the new iPhones are likely to be the biggest carrier switching event the US market has seen since 2014, so we’re going to see a lot of discounts, offers, and other promotions which lower the effective price even further.

A massive carrier switching event. Subtle point, big business. Keep that in mind as you explore your iPhone options next week.

  • CCC

    iphones have always been $1K plus in Canada LOL

  • GlennC777

    Also, peoples’ iPhones (phones in general) have become the organizational center of their lives. Many will see $1000+ as a very reasonable investment; and for those who don’t, there will be more affordable models.

  • Kriztyan

    I will upgrade, eventually. I got a 6s, and it does what I need it to do quite well.

  • Sigivald

    A $1000 phone!

    Very different from the $960-some top-end iPhone of right now, right?!

  • Merckel

    It’s not just a phone; It’s a computer that’s with you 24/7. As essential as these are to so many, $1,000 amortized over 3 years is peanuts in view of the utility and enjoyment they provide.

  • rick gregory

    Yeah, I was thinking about this fact the other day. I doubt I’ll upgrade right off, though. I have a couple more months left on the 6S Plus and I really want to see how the removal of Touch ID (presuming that rumor is accurate) and the addition of facial rec (again, presuming that’s true) works. And really… I don’t need a new phone. Nothing I use mine for is limited by the capabilities of the 6S Plus and I don’t really mind the size so I’ll watch the event, see what people think and go from there. It would be kind of nice to have a slightly lower monthly outlay for a year, frankly.

  • adambadam

    Also, the $770 is a little misleading as I am under the impressing, reading the rumors, the storage not the X will not have the lower tier which means if you are comparing mid-tier 7+ to X you are looking at a difference of less than $130.

  • Dave

    Why exactly will this be “massive carrier switching event”? The article just puts that out there with no justification. I don’t see why this new iPhone would cause people to switch carriers any more than any other new iPhone.