Data Shows Most People Won’t Spend $1,000+ for iPhone 8

Data Shows Most People Won't Spend $1,000+ for iPhone 8

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Results of a recent survey conducted by investment research firm, Barclays, reveal both good and somewhat somber news for the potential fate of Apple’s iPhone 8 flagship. While demand for the top-tier, $1,000+ flagship is “soft” — particularly among those who already own an iPhone, the prospect of paying somewhere around $50 per month to upgrade to the new model appears to increase the likelihood of skeptics ultimately jumping on board, noting that $50/month is already in line with Apple’s iPhone Upgrade Program pricing.

For example, while the results of Barclays survey found that overall demand for an out-of-pocket, $1,000+ iPhone model is hovering around 18% of current iPhone owners, the firm cited that some 85% of respondents indicated they’d be willing to pay more for an iPhone now than they would have just years ago — back when most wireless carriers were offering huge subsidies, such as hundreds of dollars off the MSRP of an iPhone. This willingness to pony up the extra coin, Barclays noted, suggests that consumers may have become aware of the effect that mass subsidies had on their crippling contracts over time.

On the whole, Barclays suggested that customers were ‘comfortable’ spending around $48.50 per month to upgrade to the iPhone 8 — factoring in a 12-month installment plan through their wireless carrier and the value of their existing trade-in. At $582 for the year, $48.50/month, in most cases, is indeed prime for Apple’s iPhone Upgrade Program, which offers customers the opportunity to trade in their existing iPhone model once every 12-months when they trade in their existing iPhone.

For comparison’ sake, Apple’s 256 GB iPhone 7 Plus currently retails for $969, or just shy of $1,000, meaning that the current top-tier iPhone model runs $45.75 per month through Apple’s program, which includes full AppleCare+ coverage. For the price, Apple will either grant full ownership to the customer after 24 monthly installments, or offer a trade-in to the next iPhone model once every 12-months. Also worth noting, however, is that most wireless carriers offer their own iPhone trade-in programs at different price schedules. For instance, AT&T currently offers the 256 GB iPhone 7 Plus for just $40.38 per month for 24-months (or a total of $969.12; however the lower monthly price unfortunately does not include additional coverage, either through AppleCare+ or AT&T). Verizon offers the same iPhone 7 Plus sans additional warranty coverage for just $40.41 per month for 24-months, with eligible trade-in after 12-months.

Barclays’ survey concluded that more customers seem willing to pay more for a smartphone now than they would have years ago…

Interestingly, while Barclays’ survey concluded that more customers seem willing to pay more for a smartphone now than they would have years ago, only about 11% of respondents (including iPhone and Android owners) expressed interest in the idea of paying more than $1,000 for the iPhone 8 — even despite a notable, year-over-year rise in overall MSRP. Samsung’s latest Galaxy S8+, for example, while an extremely powerful and feature rich device, sells for about $850, or approximately $100 more than the Galaxy S7 Edge retailed for last year. The iPhone 8, meanwhile, is slated to be Apple’s highest-priced iPhone model yet, though it will also offer specifications unlike anything iPhone fanatics have seen before.

Would you be willing to spend $1,000 or more on an iPhone?
Let us know in the Comments below.

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[The information provided in this article has NOT been confirmed by Apple and may be speculation. Provided details may not be factual. Take all rumors, tech or otherwise, with a grain of salt.]

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