iPhone narrative pivots from low-cost to higher prices
A year ago, the narrative just before Apple launched the new iPhone 5S and 5C was all about cheaper prices. This year, that’s been flipped and the talk is now about higher iPhone prices.
What happened in the last 12 months to change the iPhone plotline so dramatically?
“Last year there was lots of pressure, mostly by Wall Street analysts, that claimed [for Apple] to grow its user base, it had to lower prices,” said Ben Bajarin, an analyst at Creative Strategies. “Now that people have realized that lower-priced smartphones are not really that profitable, people in general, but Wall Street specifically, seem to have come back to the recognition that Apple’s best strategy is to dominate the high end.”
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