An Analyst from Nomura Instinet, Jeffrey Kvaal, predicts that Apple might face troubles in new future due to high prices of its iPhone lineup. He believes that iPhone X is not doing very well in the market that could mean “trouble” for the Apple in the future.He also believes that the market is not ready to adapt to the increasing prices of the smartphones, thus resulting in lower sales estimates which will ultimately hurt company’s bottom line and can have an impact on the sales overall.
The analysts also lowered his iPhone sales prediction for 2018 from 226 million units to 221 million units. The South Korean analysts of the firm added that Apple’s arch-rival in also experiencing a decline in sales with its Galaxy S9 flagship seeing a 30% year-over-year decline. This suggests that the things for some of the biggest mobile industry players are not going so well.
We do not believe it is coincidence that the highest end of the product portfolio, the X, is the model that is flagging. The China domestic vendors may be focusing on the mid-tier of the market. These datapoints align with the theory that smartphone ASPs may be bumping up against their upper limit.
The analyst also pointed out the AT&T’s BOGO (buy-one-get-one) plan did not work out very well for both Apple and the carrier itself. Despite having a premium price tag, the iPhone X is even more expensive in some parts of the world especially in India where a 64GB iPhone X model will set you back $1300 while the same model is available in the US for $999.
Despite the fact that Apple acknowledges India as one of its key markets, the price of iPhones in this market is still very high and that might be down to local import taxes.
Regardless of where you are living, the majority would agree that the iPhone X is an expensive piece of technology. Apple should really think out its pricing strategy for the 2018 iPhone models.
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