im currently using a iphone 5 64gb phone and remeber iPhones cost $999 for 64gb and 16gb was like $799. I went to check apples website and found out the iphone 5s, 16gb-64gb models cost an extra $100-200. Am I missing something here?
iPhone 5S Pricing
DEvok on 02/12/2013 - 01:14
Last edited 02/12/2013 - 10:44 by 1 other user
Last edited 02/12/2013 - 10:44 by 1 other user
Comments
cause samsung/nokia/htc etc is biting into their sales, they had to increase their prices to make more money, ipad, iphone have all gone up in prices
It's nothing to do with the product lines or competition. Price increases happen. The $AU is low at the moment and production costs and parts have gone up. Apple are selling more iPhones than ever.
Oh dear the problem with making any comment here is that the standard Apple trolls will just come out to play, they have this god damn right to tell save the world from Apple, or maybe they are just on the standard Samsung comment commission.
You make sense, but they cant help themselves…
Actually it does. It is all part of a product strategy. Produce iPhone 5s and price more expensive because they know people are willing to pay more. Produce iPhone 5c and price it less and throw in color because they know not everyone can afford a iPhone 5s and wouldn't want to use an outdated iPhone 4s (not to mention the increased screen size, improved camera, improved processor etc). Remove the original iPhone 5, because it is essentially an iPhone 5c in terms of specs, and 5c is "newer" and more "colourful" and therefore would be more attractive. Still sell iPhone 4s for people that can't afford the iPhone 5s or 5c.
Price products differently across different geographies because different people in different countries are willing to pay different prices for the same product (also called price differentiation/discrimination). There are other considerations as well, such as the market size (though this is becoming less and less of an issue in the current globalised commerce world) and market characteristics (in the USA more people buy their phones on contract, compared to here or the UK where a larger number buy their phones outright). Then there are deals that Apple has with telco companies regarding subsidies for selling their phones on contract.
As for production costs, the price of producing the various iPhones hasn't varied all that greatly. Apple's product margins are still very, very high (50%+ margin). At release, 4s production costed around $188 for basic model (same as for iPhone 4 when it was released), 5c costed $199 (some say as low as $158 :S, and some say $173), and the 5s costed between $191 to $213 according to different sources. So increase in cost by let's say $20 justifies increase in price by $100 to help cover that $20 cost? It's all about profit and strategic pricing.
As for our weaker foreign exchange rate, that argument doesn't really hold considering that even with a strong AUD, prices were much the same. Not to mention that the UK also pays a lot more than the US for the iPhone too, despite their currency strength.
In the end, Apple is a business, and they price their products to maximise profits. Their products are expensive because they believe they can sell their products at a premium, partly because of brand power, partly because of quality, partly because upgraders wouldn't want to lose their apps if they went with Android and likely other reasons too.
p.s. not sure if warranty of 2 years required by consumer law in Australia has anything to do with it, compared to the standard 1 year only elsewhere, but it likely will have some effect on pricing.
$69 extra for 16gb $100 extra for 32gb $130 extra for 64gb
You are correct OP their pricing standards were the same for many years, the good news is that your iPhone should be worth more, ie the current replacement is $1129.
I'm not sure if the additional hardware is a reason, ie fingerprint sensor.
It could be the introduced colours.Whatever the price, Apple will sell them, there were people paying in excess of $1500 to get their hands on a gold one, during the release week.
Since Apple are selling 2 iPhone product lines now (5c and 5s) that means you'll be seeing a general price increase on the top line models.