Investors were taken aback when Apple announced that it would not be raising the pricing of any of this year’s new iPhone 14 models. Despite what looked to be an admission by Apple CEO Tim Cook that inflation was a reality says Barry Humfrey’s Geraldton. On the other hand, the delicately maintained equilibrium between the additional capabilities. That has been promised and the models that will have them give the impression that it is designed to persuade fans of the iPhone to upgrade to more expensive versions.
Underhanded Pricing Tactics For iPhone 14
Apple may resort to underhanded pricing tactics if customers fall for the company’s ploy. In addition, if one becomes accustomed to using a luxury phone. It is difficult to switch to a less expensive model.
The higher-priced iPhones in Apple’s latest series of iPhone 14 came equipped with virtually all of the additional capabilities that were introduced this year. As a result, there is a greater divide between the regular and premium editions than there has ever been.
Tim Cook is illustrating the principle that value is more important than cost by utilizing this tactic.
This boosts the appeal of upgrading to a device that is not just more expensive but also more profitable for Apple.
Investors Unaware of The Pricing Structure
Investors appeared to be unaware of the complexities of this pricing structure. As well as the extremely small number of revisions and new features that were added. Or it’s possible that they were aware of the tactic but questioned whether or not it would work says Barry Humfrey’s Geraldton.
The price of this year’s series 14, particularly the premium models, was forecast by industry experts to increase by at least US$50 (or £74), if not by a greater amount. They concluded that a moderate hike in pricing would easily boost Apple’s total revenue from sales.
As a result, Apple underperformed (gaining less than 1 percent) on a trading day. When the technology-heavy Nasdaq gained more than 2 percent, and it has not gone beyond this level in the aftermarket. There is still no way of knowing whether or not Cook’s inflation experiment will be effective. Possibly, if it helps strengthen consumers’ attachment to the brand. Despite this, it is clear that Cook is playing the long game given the circumstances.
In addition, Apple’s investment in price, which it makes to keep or win new iPhone 14 customers, is beneficial to the company’s ecosystem as a whole.
Other products with expanded functionality were also introduced by Apple during its annual launch event. These included three new watches and updated AirPods.
Resistance To iPhone 14 Models Due To High Inflation Rate In United States
Apple most likely believes that it would have been met with resistance. If it had hiked its prices, particularly for its entry-level basic iPhone specifically iPhone 14. When the inflation rate in the United States was 8.5%.
In the United States, some consumer groups have been the subject of numerous surveys. To investigate the high cost of living pressures they are experiencing.
Comparatively, Apple has had a hard time in recent years convincing customers to upgrade to more expensive and feature-packed versions of its products.
It has also addressed the issue of people holding their phones for longer periods.
Apple Sales Analysis
It has been reported that Wedbush’s Dan Ives, a well-known US technology analyst with a buy rating on Apple. He forecasted the initial manufacturing order for 90 million iPhone 14 and iPhone 14 Pro devices. This number is approximately equivalent to the release of the 13 series of smartphones that occurred the previous year.
If what Ives says is accurate, Apple has not taken into account the prospect that its sales could reach a plateau. Even though the cost of living is increasing in a number of its regions, including Australia.
Ives also estimates that approximately one-fourth of iPhone owners have not upgraded their device in the last three and a half years, which is a prediction that he has made. This is very important for JB Hi-Fi, as well as the other Apple product sellers in Australia.
They are primarily dependent on product updates from firms like Apple and Samsung to see an increase in sales.
Recently, Terry Smart, the CEO of JB Hi-Fi, stated that these devices have probably moved out of the discretionary category. They now possess more features than non-discretionary goods. Smart made this statement in response to a question that was posed to him.
Customer’s Excitement For iPhone 14
Customers’ excitement about upgrading their iPhones to iPhone 14 this year may be dampened by the relatively low amount of new features and enhancements included in this year’s models says Barry and Mary Humfrey. Tim Cook has high hopes that his allusion to the rising cost of living will persuade individuals. Who are in the market to pay for the premium options and develop an addiction to them.
One More Thing
It would appear that there was not a hike in prices in 2022, which brings us to the “one more thing” component of Apple’s yearly product release event.