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Apple's greatest magic trick: A $749 iPhone is now "cheap"

14 September 2018

Here's the theory: If Apple followed its protocol and offered the $999 iPhone XS as well as a phone that is nearly exactly the same but $100 cheaper, it would most likely confuse customers and cannibalize sales. Gareth notes that the industry were expecting this model to be delayed slightly, releasing after the iPhone XS, so a concurrent release is most welcome.

The base model of the iPhone XR costs $749 and it is available in the 64GB, 128GB, and 256GB internal storage models and it will be sold in the white, black, blue, yellow, coral and (PRODUCT) RED colored flavors.

The analyst also told The Post that he predicts that even the 2-year-old iPhone 7, which has seen its starting price cut to $449, will outsell the iPhone 8, thanks to its appeal in developing markets. The price for the iPhone XS starts at $999 for the 64 GB model and goes up from there for 256 GB and 512 GB. The overall design is much the same. It has a lower-resolution 6.1-inch LCD screen and a single rear-facing camera, but otherwise delivers on the specifications of the Xs series. The XS comes with a better chip under the hood and is more water-resistant, but for most people the differences will feel incremental.

Apple has already revealed what kind of price increase we're in for once the calendar hops over to 2019.

Both of these factors might explain Apple's thinking. Why pay $999 for the incredible screen on the iPhone XS or iPhone XS Max when you could effectively buy the same phone for $100 less?

For any iPhone X owners anxious about whether the discontinuation will dent the resale value of their phone, the Forrester analyst Thomas Husson has some reassuring words. Whether you're the type of person who buys the new iPhone every year or your current phone is getting creaky with age and it's time to upgrade, you're probably wondering when these new devices will come out. "I think this will represent a harder and harder challenge to entry-price Swiss-made watches, which are not in a position to stay relevant", Exane BNP Paribas analyst Luca Solca said.

Apple's greatest magic trick: A $749 iPhone is now