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THE $1,000 PHONE: This huge problem Apple must solve before it launches the new iPhone

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30/03/2017
-Analysts are highly optimistic about the next iPhone, which is expected to be a radical reset of the entire line.

-It's the tenth anniversary of the device, so there's a huge amount riding on it.
-It might cost £1,000 ($1,000) — a sum that many shoppers will balk at.
-These are significant challenges Apple needs to overcome.

Apple is gearing up to launch what may well be the most hotly anticipated smartphone ever.

2017 year is the 10th anniversary of the unveiling of the original iPhone. Since then, smartphones and mobile apps have transformed apps, business, and the global economy — propelling Apple to become the world's most valuable company.

But as the iPhone turns 10, the pressure is on Apple to deliver a genuinely new, innovative phone. People want to see Apple launch a significant new device after several years of merely incremental improvements to iPhone. Rumours are swirling that the California tech company plans to release a special, high-end iPhone alongside the expected "7s" refresh this year, with augmented reality features.

The prevailing mood among analysts is positive. Some are giddily expecting a "super-cycle" — a massive, record-breaking year for sales, driven by the ever-increasing numbers of older iPhones in the wild that need upgrading, and a particularly compelling product offering this time around.

So there's a lot riding on this. And a lot that could go wrong. From pricing risks to hardware costs, Apple has to get several crucial calculations just right.

A radically new design will push up Apple's costs, squeezing its margins. Apple could protect its margins by raising its prices. Some people think a new, high-end iPhone could retail for over $1,000. (Apple tends to sell its products at around the same number in both dollars and pounds, which would make the price tag £1,000 in the UK). That might restrict sales, and make the rest of Apple's iPhones look like cheap deals by comparison.

The price of failure is steep. Apple Watch, for instance, was supposed to open up a whole new category of consumer wearables, but the devices have appealed only to a small niche.

No one wants the Apple Watch of phones.

Business Insider spoke to Gene Munster, a prominent Apple analyst-turned venture capital investor at Loup Ventures, to discuss the risks facing Apple this Autumn.

Note: There are numerous rumoured names for the rumoured high-end iPhone floating around, including "iPhone 8," "iPhone 10," and "iPhone Edition." Munster refers to it as the iPhone 10, so we will use that name throughout.


George Frey/Getty Images

Fonte:http://uk.businessinsider.com/apple-screw-up-iphone-tenth-anniversary-gene-munster-2017-3/#the-1000-phone-1

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