High-end iPhone price increased from $962 to $1,600 after 14 years, CEO Tim Cook is confident: ‘People will still buy our products’

According to Business Insider, the price of the most expensive iPhone model has more than halved, from $962 to $1,600 since 2009 when adjusted for inflation. However, Apple CEO – Tim Cook does not appear to be worried about this issue.

During a meeting with investors in the middle of last week, Cook said he believes consumers are still willing to pay more because phones have become an “indispensable part of people’s lives”.

Asked if the average selling price increase over the past few years was “sustainable”, the 62-year-old CEO said: “I think people are willing to really try to get the best they can afford. “.

Also at the meeting, Cook answered many questions mainly related to the fourth quarter of 2022 business results that did not meet Apple’s expectations. Specifically, this is the first annual sales decline Apple has experienced since 2019, reporting a 5% drop to $117.1 billion.

But since the tech giant introduced the iPhone in 2007 and expanded its model with the iPhone 3G and 3GS in 2009, Apple has become one of the most valuable companies in the world.

In 2018, Apple became the first US company worth $1 trillion. The company is currently valued at around $2.45 trillion, after briefly hitting a $3 trillion market cap last year.

Over the years, the price of the premium version of Apple’s flagship product has steadily increased.

The iPhone 3GS, at maximum storage, sells for $699 or, adjusted for inflation, for about $962 when it was released more than a decade ago. Currently, its latest high-end iPhone model – 14 Pro Max with 1 TB storage, costs $ 1,600. That’s a price increase of about 66%.

When the iPhone X was introduced in 2018, this phone model sold for $1,149, or about $1,376 in today’s dollar prices.

In a short span of time from the usual iPhone price trajectory, the 12 Pro Max series sold for $1,399, $100 less than the iPhone 11 Pro Max.

Although the iPhone dominates the smartphone market in the US, it’s not immune to criticism for its high price tag. In 2018, the Washington Post reported that the prices of many Apple products, including its computers, were growing faster than inflation.

After that, Apple tried to put in more affordable iPhone products. For example, in 2013, the company introduced the iPhone 5C, which cost $100 less than the iPhone 5S.

During the earnings call last week, Cook affirmed that despite many difficulties, Apple’s strategy has never changed, which is to continuously invest in innovation and people. The CEO said they are cutting costs and reducing recruitment. However, the company has yet to announce a major layoff like other tech giants in recent times.

Source: Business Insider