If we take a look from a Global Perspective, US has the cheapest iPhone ( All prices excluding sales Tax ), and everywhere else had it more expensive. i.e The $1K Prices may be making a big waves in US, but elsewhere in the world they have been paying that much for an iPhone already. And in terms of iPhones / Population / Apple Store, the US has it most. While in Japan 60% of the Smartphone are iPhone ( i.e Higher th…
Once you correct for VAT and currency, you'll find a lot of foreign iphone sales aren't really expensive. USA pricing does not include taxes and the dollar is fairly strong now.
>Well Apple already knew certain people are buying at those prices, again why not make a product that fit those segment?
I think the larger issue here is that Apple can't maintain 2008 level pricing a decade later especially as China stops being so cheap for labor. Toss in US consumers buying on credit for 24 months and its a no-brainer we'd see price jumps. Apple isn't taking a cut on its margins, so it has to do a price increase eventually.
That's on top of the phones having expensive high quality components, NAND shortages, and the cost of rare earth elements going up every so often. Prices aren't scaling for components it seems. A high quality display in 2017 isn't the same price of one in 2008, plus inflation. A modern SoC now has to support HDMI, displayport, 4-8 cores, LTE, etc all come at a component cost as well as a licensing cost. Modern phones are more or less mini laptops now, so the dream of a 'simple' ARM device is long dead. We more or less have the desktop re-invented on ARM platforms and expect them to do anything from calls to word processing to 3D gaming. That's a far cry from the original iphone and its simple apps and simple OS.
Perhaps this is the old man part of me talking, but I absolutely fell in love with smartphones in the early days. My Treo was a wonder and the iPhone twice so. The simplistic aspects of it was incredible. Everything was snappy. Apps were a couple megabytes, if that. It did the minimum I needed and then some. Now, of course, that's all changed, but for a few years there I kind had the star-trek like device I always imagined. Now I'm back to a mini-desktop, lag, big complex apps, a near unusable mobile web, constant nags for reviews/notifications, etc. The only saving grace is that a lot of that is abstracted away from me as I move towards a lot of automation and voice interfaces (voice commands, google home, etc) and I simply developed lowered expectations of the mobile experience.