The transformation of device subsidies into zero-interest, two-year equipment installment plans has made very expensive phones somewhat palatable to those who hold good credit. But does that mean consumers will still find a $1,000 iPhone 8 attractive? There’s market speculation that around half of all iPhone sales that will be made in the holiday quarter will be of the iPhone 8.
A lot of upgraders should be coming from older iPhones and it’s here that we find a bit more divergence in opinion as research firm Fluent conducted a survey of 2,000 US consumers on their smartphones past, present and future.
Of the approximately 680 iPhone owners represented, 40 percent of them would purchase an iPhone 8 — that compares to a Barclays estimate of just 18 percent. The underlying numbers give some support to Fluent’s report, obtained by 9to5Mac, as lifetime loyalty to the Apple brand is the highest in the mobile industry:
- 47 percent of iPhone owners have bought at least four of them
- 70 percent won’t bother to think about the competition
- 79 percent plan on getting an iPhone as their next upgrade
- The typical rate for Android users is 31 percent
- Samsung tops the charts at 63 percent
Even if the iPhone 8 manages to be a bust, — about 67 percent think that a $1,000 iPhone is just too expensive — all of the above metrics are strong indication that the iPhone 7s and iPhone 7s Plus will provide Apple with great revenue.
Regardless of the hullabaloo, the mere existence of the iPhone 8 should drive the average sales price of an iPhone up. It’s one figure that analysts will be watching to see if Apple can keep the reins on leadership in this industry.