Barclays: Only 11% of consumers willing to pay $1,000 or more for a new iPhone

Barclays: Only 11% of consumers willing to pay $1,000 or more for a new iPhone
New information sent by Barclay's to its clients, and obtained by CNBC, reveals that the price of the Apple iPhone this year might finally reach a point that turns consumers away. The tenth anniversary model is dubbed the Apple iPhone 8, and early speculation has put a price tag as high as $1,000-$1,200 on the handset. But the bank's survey shows that only 11% of those who responded to it said that they would pay more than $1,000 cash for an iPhone. Among existing iPhone owners, that 11% rises to 18%.

While the survey numbers don't seem to bode well for iPhone 8 sales, most of those surveyed said that they would be willing to pay up to $48.50 a month on a 12-month installment contract. This means that the iPhone Upgrade Plan, requiring users to make a monthly payment over 12-months and to trade-in their current iPhone to get the latest model, could be a widely used option for consumers looking to buy what will undoubtedly be the most expensive iPhone of all time.

At least for 2017, most of the new features found on the iPhone 8, such as the OLED panel, the edge-to-edge display and facial recognition, will be exclusive to the iPhone 8. Last week, KGI Securities Apple analyst Ming-Chi Kuo said that only 2 million to 4 million units of the iPhone 8 will be available at launch. That could lead those desperate for a new iPhone to settle for the Apple iPhone 7s or Apple iPhone 7s Plus.

One upbeat piece of information released by Barclay's revealed that 85% of survey respondents are okay with shelling out more money for the latest generation smartphone. That means that consumers do have an understanding on how carrier subsidies used to protect them from rising handset prices. With subsidies no longer available, consumers  realize that next-gen handsets will cost them more money.


source: CNBC

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108 Comments

1. rdvn26

Posts: 77; Member since: Aug 04, 2017

just go buy s7 edge it would be enough

18. Well-Manicured-Man

Posts: 663; Member since: Jun 16, 2015

Is that maybe the reason why Samsung is lowering pricing for the S8 so quickly? Maybe Samsung is simply afraid of the iPhone 8 and wants to make the S8 so cheap that people rather buy the S8 instead. In any case, the low S8 pricing is good for consumers that have waited and not bought the device yet. They save 30% now.

26. Kuroki

Posts: 183; Member since: Nov 24, 2013

Big NO. Samsung is lowering the price of S8 because of the upcoming Note 8. It has always been that way since.

28. Well-Manicured-Man

Posts: 663; Member since: Jun 16, 2015

Why would that make sense out of Samsung's perspective? The lower the S8 price, the lower the Note 8 sales. It would be in the best interest of Samsung to keep the price gap between note 8 and S8 as small as possible so that more people would buy the slightly more expensive Note 8.

86. sgodsell

Posts: 6902; Member since: Mar 16, 2013

Tell everyone here why there was all kinds of sales for the iPhone 7's back in January of 2017. The iPhone 7's were only 3 months old at that time. You could buy an iPhone 7 and get a free iPhone SE. Now some places are buy an iPhone 7 and get a free iPhone 7. If you look back a year or two ago. Apple never had sales like these. They didn't even have their latest iPhones going for free on contract. So do you have an answer manicured-man? Don't bother we know.

99. Xilam unregistered

I explained this before, sgodsell, you must first determine whether the sale is by carriers, retailers, or manufacturer themselves (regardless if it's iPhone or Samsung). If it's carriers - they use promotions with most popular devices to bring in new contracts. If retailers - they use promotions with most popular devices to bring in foot traffic. If it's manufacturers themselves - well they need the inventory to go. If you or others are going to argue whether the headset sells well or poorly - please reference to who is it making the sale promotion and why! Was it Apple or Samsung themselves lowering prices on their devices in your examples? Or was it just retailers and carriers that use the popularity of iPhone or Galaxy phones to win over customers?

103. B3NN377

Posts: 24; Member since: Jun 20, 2017

what are you doing with that username and avatar?

36. dimas

Posts: 3296; Member since: Jul 22, 2014

Samsung have always been lowering the price of their flagships whenever the new note series comes out. It's been their habit for years so it's no biggie.

63. L0n3n1nja

Posts: 1521; Member since: Jul 12, 2016

It's because there is strong competition in Android. If you want an Android, you have dozens of good handsets to choose from, and they get very aggressive with pricing. You want iOS, you pay whatever Apple charges as they are the only provider of iOS. There are people out there who use iPhone for iOS but prefer the hardware available from some Android handsets.

74. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

No matter how many times its answered, the same people ask the same stupid question. I haven't seen Samsung drop the S8 price. I seen retailers and carrier's who buy their own stock lower the price.

84. BuffaloSouce

Posts: 1238; Member since: May 01, 2017

Retailers and carriers prices reflect their prices to what Samsung sells them. So yes, Samsung does lower their own prices to, unless a carrier or retailer has a exclusive deal going on. If you want proof, go to Best Buy and they have the unlocked S8 for $574 and S8+ for $674 which is the exact same price on Samsung.com

105. B3NN377

Posts: 24; Member since: Jun 20, 2017

from samsung.com on the main page- "Back to school savings. $300 off the Galaxy S8 Unlocked."

106. B3NN377

Posts: 24; Member since: Jun 20, 2017

I like samsung products, but you blindly love them.

2. Well-Manicured-Man

Posts: 663; Member since: Jun 16, 2015

Giving that Apple has global market share of ca 15%, 11% does not seem to be that bad. Of course I don't know in which region of the world the survey was done.

56. Finalflash

Posts: 4063; Member since: Jul 23, 2013

That would be the US, and 11% of the US population of iPhone owners gives a total of 4% total smartphone market willing to pay for the iPhone 8 (40% Apple marketshare * 11% willing to pay). The rest of the world with the same proportions would mean less than 1% of iPhone owners in any given country.

3. Xilam unregistered

LoL - I can't even afford a 6s at current prices. I got lucky at some point to get a new iPhone 5s cheap thru a deal with at&t. With prices going up like they are that's the only experience I'll probably have with iPhones for a long time.

4. DellB

Posts: 55; Member since: Jun 07, 2015

"At least for 2017, most of the new features found on the iPhone 8, such as the OLED panel, the edge-to-edge display and facial recognition, will be exclusive to the iPhone 8. This is something that consumers will have to understand. And making this even more important. last week, KGI Securities..." 1. Who writes these articles. The punctuation is just messed up. 2. Seems like you're trying too hard to make excuses for Apple. What's with the: "This is something that consumers will have to understand." line?

60. Alan01

Posts: 578; Member since: Mar 21, 2012

I apologize for the gibberish. I don't even know where that line came from because I certainly didn't write it like that. In fact, several edits made to the story didn't appear in it for some weird reason. I made some appropriate changes to the story which removes the part you noted. Give it another read. Regards, Alan F.

76. DellB

Posts: 55; Member since: Jun 07, 2015

Seen.

5. AgentZero

Posts: 314; Member since: Aug 16, 2014

no phone is worth more than 600 or 700 max ! and that if it was a jaw dropping piece of tech , the 11% are made up of morons and teenagers who think mommy and daddy would buy them the new iPhone if they get an A in geography or some other crap

38. dimas

Posts: 3296; Member since: Jul 22, 2014

That's your opinion.You can rant all you want in tech sites but the rest of the world will still shell out $1000 for these products.

43. AgentZero

Posts: 314; Member since: Aug 16, 2014

the rest of the world ? have you ever been on tech forums ? 95 % of people try to build full gaming PCs and work stations for less than 1000$ !

46. kiko007

Posts: 7491; Member since: Feb 17, 2016

I'm sorry, could you repeat that for me? It's sounds like you're saying people who are into building gaming PCs are somehow the same demographic as normal consumers.

51. AgentZero

Posts: 314; Member since: Aug 16, 2014

flagships are the best of what the company is offering , that doesnt mean people have to pay more than 1000$ for a phone , many people can do it including me and many people here , but people wont do it because the idea of a 1000$ phone is moronic , you are not getting what you are paying for no matter what brand you are buying

68. adi90

Posts: 554; Member since: Dec 21, 2015

Arguing with an iPhone user over price is like insulting yourself. Don't mention it.

78. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Exactly. These same hypocrites claims the S7e was worth $800, a d the latest iaphone will still not do things the S7e can do and yet coukd cost $1000 and they are t saying nothing about it. I dont know everything the iPhone will or won't have, but there are things I know it will and won't have for a certain. It will not have fast charging, wont have a headphone jack, so t have the highest resolution or best display, wont have mass storage, wpmt allow any file type to transfer over BT, wont have floating Windows, splitscreen apps, wont have default apps and at least 25 things Android or specially Samsung phones do now. So what justifies $1000? Nothing. Yet the Note 8 will have that and more and I still say its not worth $1000. Right now I have no plans to buy either. The iPhone for sure because I just bought it. If I sell it and get $650+ then I would may be consider an upgrade. But I dont see anything worth upgrading too. As much as I miss my Note, $1000 is top.much to as for such a device with limited capabilities

75. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

He's saying these people have a cap on what they will pay for a certain product. So if rhey have a cap of $1000 on building the eat possible PC, then those same people will only pay $1000 for rh3 beat possible phone. The iPhone is not that phone. If the S7e isnt worth $800 like you claim, then the iPhone which has even leas certainly is not wotlrth $1000. But if that is the price and you want it, tbat is what you're gonna pay. I think its better to wait for the official iPhone 8 or whatever the iPhone is called next year so that you can get the new design at a lower cost. This is why Apple isn't making many, because unless carrier's and retailers offer major deals, it's gonna be a low seller. In fact they may onky sell 50M in 12 months, which means it will sell.lower than any past Samsung flagships.

67. Rocket

Posts: 630; Member since: Feb 24, 2014

not me bud.

70. domfonusr

Posts: 1073; Member since: Jan 17, 2014

Me neither. There is no way I'll ever shell out $1000 for a phone, even if everybody else is doing it, and even if I had $1000 to spend...

79. L0n3n1nja

Posts: 1521; Member since: Jul 12, 2016

Another 20 years and flagship phones could be $2000 and cheap phones cost $1000. Who knows what inflation, wages, and value of the US dollar will do. Brand new cars today cost more than a typical house did 30 years ago. Lol

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