How Apple product pricing compares to its closest competitors, in one chart

IPhone 8 iPhone 10 iPhone X ConceptYouTube/ConceptsiPhoneA fan’s drawing of what the upcoming iPhone could look like.

One of the loudest rumours about the redesigned iPhone expected to launch this fall is that it could cost $US1,000 or more.

But that price point doesn’t seem realistic, writes UBS analyst Steven Milunovich in a note distributed to clients on Tuesday.

Instead, he expects the redesigned iPhone, with a next-generation OLED screen, to start at $US850 or $US900.

He also expects Apple to launch two other models more similar to the iPhone 7 and iPhone 7 Plus at $US650 and $US750, close to their current price.

“Apple’s prices are consistent with a strategy we’ll call ‘mainstream luxury,'” he writes. “Entry-level products are positioned in the middle of the market and ‘Pro/Plus’ products sit at the high end. It’s a strategy that enables the Apple brand to be within the reach of a mass market yet be viewed as the premium option.”

Milunovich illustrates this point by comparing Apple laptop, phone, and tablet prices to other big electronics brands:

“Apple rarely ventures far above competitors at the high end. It is for this reason we do not expect to see a $US1,000 iPhone,” Milunovich writes.

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