Why the price drop on the iPhone inevitably

Price reduction on the iPhone is inevitable, says a columnist for Business Insider Dave Smith. In his opinion, it will happen though, because Apple will not break the law of supply and demand, which in the case of disobedience sooner or later lead the company to collapse. In Cupertino absolutely do not want to lose such an important market, and therefore with high probability, this fall will represent no less advanced, but much more affordable model of the iPhone.

“As stated in basic economic theory, higher prices usually lead to lower demand for the product, explains Smith. So if Apple wants to increase the demand for the new iPhone, it must sweeten the pill, [reducing their retail price]. In fact, the current model of the iPhone prohibitively expensive. The price of the most affordable iPhone [XR] today is 15% higher than two years ago. And that’s just in the US, and to talk about the prices abroad”.

How to attract the consumer

Obviously, Apple to re-attract the consumer’s attention, is simply obliged to become more flexible in matters of pricing their products and iPhone in particular, Smith said. Of course, he notes, “ten” was an excellent device to celebrate the decade line, but to celebrate the anniversary every year is too much even for the most devoted Apple fans. Fortunately, the company has still enough time to try to rectify the situation and if she’ll take it, it will again be the winner.

Deja vu in cupertinos

In my opinion, in the foreseeable future, Apple will come to that a little bit to adjust prices for branded smartphones. In the end, in the middle of 80-ies the company, releasing a breakthrough computer, the Apple Lisa, faced with a sharp drop in demand which occurred precisely because of its cost. As a result, as you know, the cupertinos have no choice but to reduce the price of the second generation of the device. So why the same can’t happen with the iPhone?

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