It’s hard to imagine that Apple wouldn’t realize they are beginning to walk a very slippery slope indeed. Their prime phones, the six series, pushes this envelope heartily. People are constantly mentioning the price of the phone, with an adjective that says it all: insane.
The iPhone SE may be a good way to test the above. In Max Greve’s article “iPhone SE, Not iPhone 7, Is The Key To Apple’s Future” the author outlines three aspects of the phone, a long with price, that could be put to the test to determine the staying power of the iPhone. For myself, I believe the iPhone will be around for a long time but that the price is out of line with reality. Put another way, the price has to come down and the SE might be a good move in that direction.
The iPhone 7
I would expect the iPhone 7 to come in at a comparable price to the iPhone 6. However, if the SE didn’t exist, Apple could be in for its first worst tumble. A loaded iPhone 6s 4.7” screen comes in about $1300 CDN and more if you buy the warranty. Such a price, if this were the only option, would likely strain Apple’s bottom line greatly.
They need not put all their eggs in one basket. As an example, stepping outside of the iPhone line, their computers and more especially the Apple TV holds for some very interesting new revenue streams for Apple, again though they don’t price insanely.
A View; An Outcome
Depending on how you look at this, Apple could have a very good future or hit its first speed bump in a very long time. As long as they put energy in diversification and avoid boxing themselves into a product with a steep price, they could do well. The alternative is a nasty speed bump and many before Apple have hit this by myopic driving.