Culture

iPhone X Launch Update: 20% of Customers Would Buy No Matter the Cost

(Image via Apple)

October 27 is the day that Apple iPhone fans have been waiting for. On that Friday at midnight Eastern Time, Apple will begin taking orders for the iPhone X, the most expensive iPhone ever sold and hundreds of dollars more expensive than its competitors. Delivery will begin one week later on Friday, November 3.

According to estimates, Apple’s initial supply available for purchase will about 12 million units on day one and 40 million units through the end of this year. That sounds like a lot, but Apple sold 78 million iPhones, or almost 1 million per day,  just in this past quarter.

The iPhone X will cost $999 for the basic model with 64GB of memory or $1149 with 256GB. An AppleCare+ protection plan adds $199, and, assuming you’re buying in a state with sales tax, the total cost could reach more than $1400! Compared to the original iPhone that cost $500 ten years ago, that’s quite an increase, especially in an era where the cost of consumer electronics has dropped rapidly. The cost of HD flat panel TVs has dropped to less than a quarter of what they cost a few years ago.

You have to give Apple credit for their chutzpah. They’re banking on the loyalty of their iPhone users paying pretty much whatever it takes to upgrade to the newest and latest model. With Android phones becoming easier to use and offering some advantages, such as Google Assistant, Apple is banking on its loyal user base.

A survey by Creative Strategies found more than 20 percent of Apple customers would buy the new iPhone no matter how much it cost.

Expect to hear from Apple right after the phones go on sale that they’ve sold out and the waiting period will extend into next year for new orders. But the real test of success will be what happens six months from now and whether Apple can sustain the same high rate of sales.

That will depend on how well the phone performs. Look for reviews and customer feedback that will show up in early November. The big area of risk is how well the facial recognition works. It’s the replacement for the fingerprint sensor used to seamlessly unlock the phone, make purchases, and replace passwords. It will have to work most of the time on the first try under all sorts of conditions.

The other issue constraining the phone’s availability is the supply of unique components for the facial recognition as well as the OLED display supplied by Samsung. Stay tuned for the arrival of the iPhone X blitz.

The new iPhone X details

  • Apple CEO Tim Cook called the new iPhone X,  “The biggest leap forward since the original iPhone.”
  • 5.8-inch OLED display takes up the entire front panel
  • Housing is made of stainless steel with glass on the front and rear panel.
  • Water and dust resistant
  • Available in dark grey and silver
  • No home button; wake up by tapping or swiping up.
  • Unlock using facial recognition
  • Costs $999 for 64GB and $1149 for 256GB
  • Pre-orders October 27; shipping begins November 3
  • Available from Apple and major carriers.
  • Must have an existing cellphone account or open a new account to make it difficult to buy and resell

For more information, here is Apple’s iPhone X site.