Do you think this marks a shift in Apple's plan? I REALLY like this price tag. It's still an expensive phone but I think Apple is finally paying attention to the market.
Ummmm economics… lower price = larger # of buyers… apple definitely crunched the numbers and determined that the Lower price would achieve greater profits than the higher price with fewer buyers
50$ x 26 million… dude, thats not how it works… -_- the BOM cost of the new phone is most likely a lot lower, and they can sell MORE units, so overall they figured out they can make MORE money by selling it cheaper. do you really think apple is stupid and just throws away money??? and youre smarter than them and know better?
"Android Users" nope I don't care apple still sucks And for those who have a iphone Xs and want reasons to upgrade here it is,A Good Battery Life,A new powerful chipset,Updated Camera,New Design Hope that's worth upgrading!🤑
Apple's sudden change in pricing shows that the market for low cost high performance market has shaken them. And iphones tend to fare better in sustaining good performance long term. In the end really good for the lower to mid range consumers.
They aren’t leaving any money on the table. A lower cost simply shifts the demand curve. I’m sure they have in house economists who have studied the demand curve in great detail.
They didn't necessarily leave that "money on the table". The major assumption is that they would sell the volume of phones with the lower price. Based on consumer price sensitivity, they could potentially sell more to offset the lower price. Potentially.
The fact that they still only come with 64 gigs in the base model almost forces you to spend the extra $50 to move up to the 128 gig model where their profit margin is higher. I think from a marketing perspective it was smart to lower the price because that sticks in most people's heads. Recording one minute of 4K video takes up between 350 and 400 MB. With around 50 gigs of available storage after OS and apps, you only have about 30 – 35 minutes of recording storage.
what truly would have been ground breaking is if they had lowered the price AND increased the storage. 64 gigs of storage in 2019 is insulting. Hopefully the 2020 iphones will give us real world useable storage amounts and 5G. I am doing a hard pass on this gen
I love Dave's videos, but this is a very naive analysis. Revenue is quantity times price, and lowering the price will increase quantity sold. By how much? That's what economists called "elasticity of demand": how many more units will I sell if I drop the price by one dollar. I'm pretty sure that Apple did the research and they're convinced that they will sell enough units to maintain (or increase) revenue. I do agree that there are some other factors at play, and definitely selling cheaper phones to increase services revenue is a big one.
Apple, doing what it does best which is milk its users… the reason for the cheaper price is to entice people to grab one and then release a new "generation" device (aka a different design) next time around (next year) again making people want to upgrade.
Much Respect to you and your work! Break Showing up late to the party is …._.._…. Selling Old Tech is ….. The baseline phone is Old Wine with an extra camera lens… It is still Old .. In the land of the blind, the one-eyed man is …..
Only reason Apple lowered the price is because the world economy is going sour and they know people won't buy their overpriced crap in the coming years otherwise.
47 Comments
Do you think this marks a shift in Apple's plan?
I REALLY like this price tag. It's still an expensive phone but I think Apple is finally paying attention to the market.
Ummmm economics… lower price = larger # of buyers… apple definitely crunched the numbers and determined that the Lower price would achieve greater profits than the higher price with fewer buyers
50$ x 26 million… dude, thats not how it works… -_-
the BOM cost of the new phone is most likely a lot lower, and they can sell MORE units, so overall they figured out they can make MORE money by selling it cheaper. do you really think apple is stupid and just throws away money??? and youre smarter than them and know better?
"Android Users" nope I don't care apple still sucks
And for those who have a iphone Xs and want reasons to upgrade here it is,A Good Battery Life,A new powerful chipset,Updated Camera,New Design
Hope that's worth upgrading!🤑
Apple's sudden change in pricing shows that the market for low cost high performance market has shaken them. And iphones tend to fare better in sustaining good performance long term. In the end really good for the lower to mid range consumers.
nah most of the cosumer buy iphone to show up cuz it is expensive so what they are doing is going to be bad for them
I really thought it was a new video 😑 very informative nonetheless.
I’m tired of all of them turning iPhones into high dollar luxury items and I’m glad they lowered the price
when it come to apple，our poor Dave speak cautionsly . Damn apple
$699 for a phone that costs $99 to make…..
Exactly, their services revenue is where the money's at right now.
You have a very good point and consider they just launch apple card, more apple user may mean more people using apple card.
They aren’t leaving any money on the table. A lower cost simply shifts the demand curve. I’m sure they have in house economists who have studied the demand curve in great detail.
i'm surprise there no huawei phone inside the chart, how it become second in market share without getting in the chart?
They didn't necessarily leave that "money on the table". The major assumption is that they would sell the volume of phones with the lower price. Based on consumer price sensitivity, they could potentially sell more to offset the lower price. Potentially.
David dobrik 4:20
Nice
The fact that they still only come with 64 gigs in the base model almost forces you to spend the extra $50 to move up to the 128 gig model where their profit margin is higher. I think from a marketing perspective it was smart to lower the price because that sticks in most people's heads. Recording one minute of 4K video takes up between 350 and 400 MB. With around 50 gigs of available storage after OS and apps, you only have about 30 – 35 minutes of recording storage.
what truly would have been ground breaking is if they had lowered the price AND increased the storage. 64 gigs of storage in 2019 is insulting. Hopefully the 2020 iphones will give us real world useable storage amounts and 5G. I am doing a hard pass on this gen
Is that Samsung Galaxy Fold. First from right.
I love Dave's videos, but this is a very naive analysis. Revenue is quantity times price, and lowering the price will increase quantity sold. By how much? That's what economists called "elasticity of demand": how many more units will I sell if I drop the price by one dollar. I'm pretty sure that Apple did the research and they're convinced that they will sell enough units to maintain (or increase) revenue. I do agree that there are some other factors at play, and definitely selling cheaper phones to increase services revenue is a big one.
Apple, doing what it does best which is milk its users… the reason for the cheaper price is to entice people to grab one and then release a new "generation" device (aka a different design) next time around (next year) again making people want to upgrade.
They're just slightly cutting their huge profit margin per device. The production cost is probably between $250-$350
Back to starting the videos with "Ok… So" I see.
Or maybe they did the math and they are trying to get to the optimal price? Price impacts sales.
U calculate it wrong man, it's cheap now so instead of selling 26m they will sell twice or triple that number maybe.
Is that the galaxy Fold on the table?
Much Respect to you and your work! Break Showing up late to the party is …._.._…. Selling Old Tech is ….. The baseline phone is Old Wine with an extra camera lens… It is still Old .. In the land of the blind, the one-eyed man is …..
What about the Galaxy Fold laying on the table? 🤔
I just don't understand why people pay that much for a 720p LCD ._.
This guy is smart…. 🙌🙌
Can we just hit the like button just coz the video is 4:20mins long?.!!.
I like that your video length is 4:20 and I don't even do drugs
This is a terrible economic analysis. Lowering the price affects demand, and therefore sales figures. Not accounting for that makes this hyperbole.
love you smart analytic
Really like the way you analyse the market! Keep making such videos👍
In my country buying the iphone 11 is like buying the iphone 11pro because of tax
how apple really makes its money, the dongle
They won’t lose money, they’ll gain more customers
Laughably overpriced. These specs you can find in a $300 phone
Next step will be that they will actually upgrade to FHD Resolution
No No apple
Only reason Apple lowered the price is because the world economy is going sour and they know people won't buy their overpriced crap in the coming years otherwise.
Their bloody eco system has locked me to use more of their product. It’s a trap!
to the point! thnx 🙂
funny to say "cheaper" for me they are still expensive
4 words: *price elasticity of demand*. Apple could well make make more money charging less, by simply selling more phones.
Hmm I love buying the same thing every year