iPhone X is like a Louis Vuitton’s bag

When Apple priced a smartphone above the $1,000 barrier for the first time two years ago, consumers balked. Analysts worried the iPhone X

would flop while USA Today joked that buyers might need to take out a mortgage to purchase it. But then the unexpected happened: people bought the device in such numbers that iPhone revenues reached a record $62 billion in the holiday quarter… The revenue boost proved shortlived but ahead of Apple’s annual hardware event tomorrow, pricing experts at the consultancy Simon-Kucher & Partners believe consumers are ready for the next milestone: a $2,000 iPhone. However, the number  of customers willing to splash out the extra cash could be considerably lower if Apple fails to unveil any big technology improvements that might command such a premium. Analysts say the smartphone looks set to underwhelm… Yet, it may not matter. Apple still wants to have the best device, but the hardware has taken a back seat to its push into wearables and services, where more than 420 million people subscribe to offerings from music to films… The company’s multiyear shift in focus from smartphone sales to building out its “installed base” of users — now at more than 1 billion — has formed an unparalleled ecosystem of products that is proving hugely lucrative. 

Patrick McGee