Has the iPhone hit the (pricing) wall?

iPhone 2018 new pricing

Last week, two respected Morgan Stanley analysts made the case that Apple would be more flexible next year in its iPhone pricing. They claim some tweaks to the design and more stable supply chains will give the company the margin it needs to do that. I don’t buy it. I think Apple (and to be fair, other consumer electronics companies) are bumping up against the affordability wall. Sure, some consumers are quite well off, but if you forget “mean” and remember “median” from your statistics class, you’ll notice that many people are struggling to afford ever-more-expensive devices that are not meaningfully better than their predecessors.

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Photo credit: 9to5 Mac

#marketing #pricing #affordability

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