Apple made an unprecedented move by forking their iPhone product line in two. They also knew that they didn’t have enough iPhone X supply to sell in the same numbers as the iPhone 7 of well over 200 million units per year. You could make a great case that Apple intentionally hamstrung iPhone X demand through pricing because they figured it was better to err on the side of letting demand be the constraining factor versus supply. Apple would have been in a much worse position if they could only produce 80 million of the iPhone X in an entire year when there was demand for 150 million or more.
If Apple reduces the price next year, I’m guessing there will be a rush of demand. Apple wins again. And this could have been the plan all along.
There was one group who got screwed with how Apple handled iPhone X demand this year. The eBay scalpers. For the past few years, people have been willing to pay $1000 to $1300 to get the top iPhone at launch. This year, Apple reaped that premium and scalpers had a harder time getting people to pay $1500-$1800 per unit. Further, the window of opportunity was much smaller this year because supply didn’t seem to be too far behind demand. Apple did an almost miraculous job of guessing how many units they’d need. Better than any previous year…ever.
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