Tim Cook, the CEO of Apple, told investors that customers are willing to spend a lot of money to have the greatest iPhone they can, suggesting that even more costly versions could be coming soon.
Cook made a casual comment on an earnings call that was primarily about Christmas results that may have significant implications for the company’s future, reported Bloomberg.
The CEO was responding to a query regarding the sustainability of the iPhone’s increasing average sales price. For example, a top-of-the-line model that cost $1,150 in 2017 (the iPhone X with 256 GB of storage) now sells for $1,600 (the iPhone 14 Pro Max with 1 terabyte).
His response: “The price increase is no problem. In fact, consumers could probably be persuaded to spend more,” the outlet quoted him as saying.
Cook noted that the iPhone has become “integral” to people’s lives and that “I think people are prepared to really stretch to get the best they can buy in that area.” According to him, consumers now use the device to store banking information, manage their health, control smart home products, and make payments.
Cook made a strong case for why even more upmarket iPhones would make sense, particularly if they have new capabilities.
There have been internal discussions at Apple about upgrading the flagship iPhone model. In order to distinguish its Pro versions from other iPhones and entice users to pay more money, it has already done more.
Apple will use a variety of materials, CPUs, and cameras to further distinguish the product’s tiers when the iPhone 15 is released later this year. This entails upgrading the Pro Max version by adding a periscope lens, which will improve the optical zoom.
The tech giant’s intention to differentiate the Pro and Pro Max more has led to rumours that the corporation will choose to launch a new Ultra-tier brand. Apple has already given that designation to the most advanced M1 processor as well as its stylish, high-end smartwatch.
Apple might alternatively place a more expensive iPhone atop both Pro models rather than dubbing the Pro Max “the Ultra.” Internally, the business has spoken of doing just that, perhaps in time for the 2024 release of the iPhone.
As a result, prices could increase and consumers would need the incentive to upgrade. It is unclear at this time how that top-of-the-line device would differ, although it will likely come with upgraded cameras, a quicker chip, and possibly a larger display. There might be additional futuristic features, including the eventual removal of the charging connector.