14 DAY TRIAL // While the high prices of the 2018 iPhones are considered the main reason the new-generation models do not sell as strong as anticipated, an Apple exec tries to explain that the selling price includes many more costs that are associated with the development of a product.
Apple COO Jeff Williams emphasized in a keynote delivered at the Elon University on Friday that analysts who criticize the Cupertino-based tech giant for the prices it set for new iPhones do not take all costs into consideration.
“The stories that come out about the cost of our products [have been] the bane of my existence from the beginning of time, including our early days,” Williams was quoted as saying by the NYT. “Analysts don’t really understand the cost of what we do and how much care we put into making our products.”
No word on possible price cuts
However, Williams explains that Apple keeps an eye on the feedback it receives on the iPhone pricing, without providing any specifics as to whether the company is planning any discounts or not.
“It’s something we’re very aware of,” he said. “We do not want to be an elitist company. That’s not — we want to be an egalitarian company, and we’ve got a lot of work going on in developing markets.”
The chances are that Apple won’t reduce the price of the iPhone directly, but with carrier subsidies, an approach that the company has already used in several markets, like Japan. Apple has also increased the value of its trade-ins in the United States, paying more for older iPhones that customers exchange in order when purchasing new models.
Nevertheless, the 2018 iPhones remain very expensive gadgets, as the iPhone XR, which is supposed to be the most affordable of them all, starts at $749 in the United States. iPhone XS is available from $999, while the top iPhone XS Max can be ordered for $1,449.