The iPhone 11 might be something that many of those in the core Apple fanbase is looking forward to, but this is not necessarily the case for everyone else. Thanks to reports flying around that it might be as expensive as the iPhone X, there are now fears that it could underperform. Some analysts are already saying that device upgrades are currently in its worst state.
As BGR reports, sales for the iPhone have been showing an alarming level of underperformance of late, and a huge reason for this is the price. It’s no secret that customers are wary of spending upwards of $1,000 for even the base versions of Apple’s mobile devices. However, it would seem that the Cupertino firm might still apply the same prices to the iPhone 11.
Apple loves having a healthy profit margin with its devices and even lagging iPhone sales won’t stop it from implementing the same expensive prices to its future offers. Some reports indicate that the iPhone 11 will not have any low-end options available. As such, if anyone wants to own the latest mobile devices offered by Apple, they will need to start selling their kidneys now.
This is troublesome because it also indicates that Apple might be underestimating just how huge of an impact this would have with regards to the upgrade cycle. Bernstein analyst, Toni Sacconaghi has already expressed concerns with regards to how often customers buy new iPhones. This could impact iPhone 11 in a major way.
“In our view, the single most important controversy surrounding Apple today is the iPhone replacement cycle – despite the iPhone installed base growing +9% last year, we now expect units to be down -19% in fiscal 2019, implying a material pushout in upgrade rates. Replacement cycles are elongating… a lot,” the analyst recently said.