As we stand at the last quarter of 2017. Apple is enjoying its heyday as the tech giant introduces it’s flagship smartphone iPhone X. The “X” represents one of the Roman Numerals which means “10”. As the company celebrate it’s tenth anniversary of its iPhone product line, no wonder why they chose to step aside from it’s traditional English Numerals for this specific phone.
While their radical move with numbering is understandable what I didn’t understand is, why they are skipping the “9” altogether? Should we expect a fictional iPhone 9 on later date? Maybe. It actually doesn’t matter much as long as Apple can come up with something that people want to buy and boy o boy, people are buying iPhone X like there’s no tomorrow.
New iPhone X. © Apple.
With iPhone X, Apple not only broke their naming tradition but they also broke their pricing & gross margin tradition for the first time. Generally speaking, almost all the previous iPhones were marked as $649 (USD) when they were initially launched. However, the basic iPhone X model (64GB) would cost you whopping $999 which makes X the most expensive iPhone ever.
As far as the gross margin is concern, Apple is generating 64% gross margin with their iPhone X. TechInsights, a company that tears down tech devices and analyzes the parts inside recently reported that the parts used on X actually cost $357.50. On the other hand the newly introduced iPhone 8 Plus costs $367.50 for apple.
Historically speaking, Apple tend to lower the price of older generation iPhone as the newer model gets introduced. Similar approach has been followed for iPhone 6s and 7 as the newer iPhone 8 and X got introduced. If everything goes according to the plan and if I don’t misread their strategy, iPhone X’s price is bound to fall by the end of next year and that’s no brainer.
Now, before making any iPhone purchase decision, the question that I always asked to myself, “Do I really need top of the line iPhone? Does that money really worth my purchase? Can I get the most bang out of my buck?” Like always, I could not come to a positive conclusion from any point of view on this. Please do not get me wrong, I also appreciate the Apple’s product and the quality that the company puts into their products. I also happen to own several Apple devices but none of them are top of the line type. Why? Price tag. I think they are overpriced, over valued and we the consumer allowed them to go to an extend that no other smartphone manufacturer dares to do.
If you pay serious attention to the over enthusiastic group of Apple customers who waits for a whole night in front of the Apple store, tend to be the type of consumer who are generally young and really doesn’t need the latest iPhone for any meaningful productive purpose (except few) apart from showing that off. Even though some are justifying their purchase with their perceived notion of happiness but in reality it is impossible to achieve any sustainable happiness from the idea of consumerism. It is a never ending ride unless you really know where to get off.