Cool Graphic: Horace Dediu’s stairway to Apple heaven

Click a couple times to watch the average iPhone selling price climb almost to the sky before taking a baby step down.

From a tweet posted Wednesday by @asymco:

apple iphone stairway heaven

My take: What’s cool is that I’m going to pay $50 less for an iPhone 12 Pro than I paid last year for the equivalent iPhone 11 Pro. Hey, where’s my earbuds? Where’s my charger?

17 Comments

  1. Gregg Thurman said:
    Strange omission, nobody is taking into account the increase in base storage WITHOUT the usual $100 price increase to get it.

    The iPhone 12, with or without a charger and earbuds, is $100 cheaper than the iPhone 11.

    3
    October 15, 2020
  2. Bart Yee said:
    “My take: What’s cool is that I’m going to pay $50 less for an iPhone 12 Pro than I paid last year for the equivalent iPhone 11 Pro. Hey, where’s my earbuds? Where’s my charger?”

    Heh, you also get a faster, much more capable custom 5nm A14 processor SOC, GPU and Neural Engine which powers Computational Photography, 128gb base memory, a larger, higher resolution OLED WITHOUT power wasting higher refresh, leaps forward better camera system, HDR & Dolby recording & editing, MagSafe charging & accessories.

    Your earbuds and charger? Right in the drawer with all your other ones you’ve bought over the past 5-12 years. Or the Anker, Belkin, Aukey, et. al. accessories you will order soon enough. Wouldn’t you prefer AirPods anyway?

    4
    October 15, 2020
    • David Emery said:
      “Wouldn’t you prefer AirPods anyway?”
      Uh, no. I can’t stand anything inside my ear!

      But Bart’s point is a good one, I have lots of Lightning cables and USB-A chargers (and very few USB-C chargers/devices.)

      1
      October 15, 2020
      • Bart Yee said:
        @David Apple “hears” you (get it? 🙂 ), Over ear buds or headphones are coming, sooner or later. It would be so cool if another Event gets announced during or around Earnings call for Mac Silicon, Wearables accessories, and Tags.

        But that may prove to be Holiday Apple Overload or go over poorly during a pandemic.

        1
        October 15, 2020
  3. Ralph McDarmont said:
    I think most of your subscribers have a junk drawer packed with chargers and buds. Those items tend to accumulate. I enjoy having a charger in every room of my home. But I do lose track of my toys since they don’t have a central charging location. Crocodile tears. Hey Siri, find my brain.

    3
    October 15, 2020
  4. Fred Stein said:
    Tony Tiger says, Grrreat. A line up from $399 to $1,399.

    The max’ed out max actually got cheaper, but it’s crazy-wow better. And that will actually drive ASPs higher (my guess).

    1
    October 15, 2020
  5. Fred Stein said:
    It’s amazing that so few analysts see what Apple just did.

    The prices are not just aggressive, they squeeze Android at every level, especially adding a surge in trade-in iPhones to reach below $200.

    At the high-end, no Android can compete on capability.

    All the rest, HomePods, chargers, wearables, services, Macs, iPads are trucking along just fine.

    Coming soon AirTags and Apple silicon Macs.

    4
    October 15, 2020
    • Bart Yee said:
      Agree with you, Apple, for those who want to see it, has added so much technical and usable VALUE to similar or better price points. This is the reason iPhone 12’s will be attractive to current iPhone users who take overall value into consideration. Your Android market competition comments are dead on. Apple now offers competitive iOS alternatives at every Android price point except below $299. Perhaps absurdly, I could get $300 off an SE by trading in my XS 256gb giving me a $99 SE or $60 off w/my 5y/o iPhone 6S.

      It’s instructive to check the Apple Store and look up the trade in values for iPhones (higher and deeper) vs Samsung or Google phones (generally lower and not as far back). Apple is perfectly happy to conquest Androids or disrupt (upgrade) it’s current owners plus have a ready supply of older models to either refurb, then resell, or recycle.

      0
      October 15, 2020
  6. Bart Yee said:
    Back on topic, Dediu’s info packed graphic nicely illustrates that with just 3-4 new devices per year and reducing prices on former, older “flagship” level devices, Apple fills in the price and hardware levels between $500-800 very nicely without needing to build new, cost specific, middle (middling?) performance compromises such that Android makers do. 2-3 year old Apple devices still run rings around mid to upper mid-level similarly priced Androids. Plus continued long term OS support adds additional value.

    Indeed, in leveraging and amortizing previous models, Apple powerfully gains economies of scale for all hardware, extends the useful life of its custom silicon while reducing costs, keeps proven assembly skills which reduces defects, and avoids the all too common trait of chasing the competition.

    This model is only possible by thinking outside previous cyclic business models and having a much broader and longer integrated hardware, software and services overview of how you conduct business. IMO, Apple’s vision for its markets and how to successfully build value in each one keeps unfolding before us, yet so few seem to see it as clearly.

    1
    October 15, 2020

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