People are panicking for the second year in a row. Before the release of the iPhone 14 and iPhone 15, analysts of various kinds predicted a slight increase in prices for models with Pro delivery.
After all, the dollar is experiencing record inflation, the iPhone 15 Pro (our review) is better than the iPhone X in everything: base memory has increased from 64 to 128 GB, the camera has become larger, the processor is more powerful, the screen is larger, Face ID and the frame are smaller.
But the predictions remained fantasies.
Over the past 6 years, the company has never increased the prices of its smartphones of the same shape. At least in dollars.
And then I started thinking. Considering the situation, is it easier for people to buy top-end iPhones now?
The situation in the US and Russia is different, but not to the extent that everyone thinks. You will be surprised, but formally Buying a top-end iPhone in Russia is now easier than 6 years ago.
How come Apple is holding down the price?
When the company announced prices for the iPhone 15 Pro, there was some kind of catch. The dollar is getting cheaper, and people are asking for smartphones like in 2017.
We look only at flagship models, we don’t take variations of the iPhone SE.
2017
iPhone 8 US$699
iPhone 8 plus US$799
iPhone x US$9992018
iPhone XS US$749
iPhone xs US$999
iPhone xs max US$10992019
iPhone 11 US$699
iPhone 11 pro US$999
iPhone 11 pro max US$10992020
iPhone 12 mini US$729
iPhone 12 US$829
iPhone 12 pro US$999
iPhone 12 pro max US$10992021
iPhone 13 mini US$729
iPhone 13 US$829
iPhone 13 pro US$999
iPhone 13 pro max US$10992022
iPhone 14 US$829
iPhone 14 plus US$929
iPhone 14 pro US$999
iPhone 14 pro max $1099 (128GB)2023
iPhone 15 US$829
iPhone 15 plus US$929
iPhone 15 pro US$999
iPhone 15 pro max $1,199 (256GB).
Analyzing the situation, we can say that only four changes occurred.
➢ In 2019, under a harsh statement, the media announced the iPhone 11 to be $50 cheaper than the iPhone XR.
➢ But in 2020, with the words “we left the same price,” the base smartphone became not the 6.1-inch mid-budget smartphone, but the 5.4-inch iPhone 12 mini for amateurs.
At the same time, the cheapest new smartphone with a 6.1-inch display was the iPhone 12 for $799 – $100 more expensive than its predecessor. But all this came with an asterisk: due to the transition to 5G models, the price was even more by $30, it was simply compensated by American telecom operators.
Although Apple shows a price of $799 on all the slides of the presentation, the iPhone 15 costs $829 in free sale.
At the same time, the iPhone 12 Pro and iPhone 12 Pro Max increased in diagonals, but remained at the same price of $999 and $1099, respectively.
➢ In 2022, the mini model is gone and the starting price has increased from $729 to $829.
➢ In 2023, the iPhone 15 Pro Max starts at $1,199 for the 256 GB model, although all five years before that, “maxes” started at $1,099 for the 128 GB model. From an economic point of view, the product has become more expensive, but the technical ones have remained at the same level.
There was only one constant left. The flagship 5.8/6.1-inch earphone cost $999 for six years.
But the trap here is that we look at the numbers and forget about inflation, to which people’s income is adjusted over time.
Prices in the US for iPhones have not changed, but the increase in average wages in the country has completely covered inflation and fixed real purchasing power at the same level as in 2017.
It so happens that now smartphones in America are sold at a 25% discount.
Here’s what it looks like in an example.
Out-of-the-box iPhone 8 was more expensive than the current iPhone 15
When comparing prices, we started in 2017, when Apple released its first smartphone with an OLED display, the iPhone X, for which the company charged $999 at that time.
Then the exchange rate was 1 dollar = 59 rubles.
Over 6 years, the American currency has fallen in price by 25%. As a last resort, this is what the change calculator looks like.
Together with the iPhone X, the iPhone 8 was released then. In the case of the iPhone 6, with one tiny socket, with a three-year-old 4.7-inch LCD screen, a small battery and even without frames, and the margins are usually on top.
iPhone 8 Plus from our review
At launch, the iPhone 8 cost $699 (41,250 rubles at this rate). If we convert the price tag into 2023 dollars, the cost of such a smartphone was now equal to 875 dollars (85,500 rubles at the current exchange rate).
Now let’s look at the current situation. In 2023, the cheapest new Apple smartphone is the iPhone 15 for $829 (81,000 rubles). $46 cheaper than iPhone 8.
If the iPhone 15 had been released in 2017 at the same real value, then it would have been priced at $661 or 38,999 of those rubles.
Even more fun with iPhone 15 Pro.
iPhone 15 Pro Max costs as much as iPhone 8 Plus
As of September 2023, the cheapest iPhone 15 Pro Max with 256 GB memory costs $1,199 or 115,270 rubles at the current exchange rate of $1 = 96.14 rubles.
When the iPhone 8 Plus launched in 2017, it only had two storage options: 64GB for $799 and 256GB for $949.
If the 256GB iPhone 8 Plus were released in 2023 with the same monetary value as in 2017, it would cost $1,188. $11 cheaper than the iPhone 15 Pro Max.
Red iPhone 8 Plus (RED) from our review
But the iPhone X now cost $1,251. That is, in comparison, the iPhone 15 Pro is sold at a discount for 252 modern dollars (24,600 rubles).
Simply put: For the money you’d spend in the US now on an iPhone 15 Pro Max, you wouldn’t even be able to buy a 64GB iPhone X in 2017.
Why then do we not feel such an attraction of generosity?
In relation to the United States, the situation is completely different – but still far from deplorable.
What about in Russia? You will be surprised
Launch of iPhone X in Russia
According to the website “Inflation in Russia,” which is based on information from the Federal State Statistics Service (Rosstat), from 2017 to 2023, ruble inflation without reference to the dollar economy is 42%.
Let’s see how iPhone prices have changed.
Let’s take the gold standard – the thousand-dollar iPhone X/Pro:
iPhone X 79,990 rubles
iPhone xs 87,990 rubles
iPhone 11 pro 89,990 rubles
iPhone 12 pro 99,990 rubles
iPhone 13 pro 99,990 rubles
iPhone 14 pro 119,990 rubles (restore:)
iPhone 15 pro N/A, seasonal increase.
The situation is more complicated with the last two releases, since Apple no longer ships to the country. Smartphones have a floating price tag. Now gray sellers are offering iPhone 14 Pro (128 GB) for 99,990 rubles, while imports from familiar sellers are already 119,990 rubles.
Now the iPhone 15 Pro in Russia costs 180,000 rubles. Prices for new products will stabilize closer to November, and then we are waiting for a window from 115,000 to 125,000 rubles for a 128 GB model.
If you exchanged 79,990 rubles from an iPhone X in November 2017 for rubles in September 2023, you would now receive 114,100 rubles for them. That is, the cost of a smartphone in the same category over 6 years in ruble equivalent has remained almost at the same level.
iPhone 15 Pro at the start of sales in Russia
How have salaries changed in Russia during this time?
In 2017, the average income in Russia was 28,300 rubles. In terms of 2023, this is 40,388 rubles.
Do you know what the average salary received in Russia in 2022? 40,300 rubles.
In 2023, the same figure was 48,379 rubles as of August (data from SberIndex).
I do not take responsibility for the accuracy of statistics from data sources, but based on external figures from open sources, it turns out that since 2017, taking into account the current state, real income has grown by an average of 16.5 percent.
Below are the comparable metrics (again taking into account measurement):
◆ iPhone X would now cost 114,100 rubles with a salary of 40,388 rubles.
◆ iPhone 14 Pro costs 120,000 rubles with a salary of 48,379 rubles.
◆ iPhone 15 Pro will cost about the same money in a month and a half.
Speaking in numbers, in 2017 it was necessary to work on the new flagship 2.82 month. In 2023, the new flagship will need work 2.48 month.
That is, with all those six-figure price tags that we see, on average, iPhones in Russia not only have not become more expensive, they have become cheaper taking into account purchasing power. Not the same as in the USA, but they now need to work about 12% less cleanly.
If everything else hadn’t also risen in price, of course.
iPhones are getting cheaper, thanks to services
Apple revenue distribution. Green – services, a direction that is growing steadily and does not jump from quarter to quarter. Therefore, Apple smartphones have not yet been disclosed in price.
Unlike food manufacturers, Apple cannot make a pack of iPhones 100 grams smaller in order to maintain the same price tag in a crisis.
Every company should report to the whole world about its latest achievements, stuff iPhones with new features and constantly update their software.
I recently heard a phrase from a business person: “iPhones are too expensive.” And I was surprised.
Of course, the model range has been confirmed, but until Apple raises prices, its smartphones will become more affordable with each release.
With this tactic, the company is not promoting a manufacturer of premium equipment and, at the same time, is gently changing its business model.
The company is ready to make the real entry threshold lower, because the revenue from their services is already greater than from the sale of Mac, iPad, Apple Watch and AirPods combined. And the biggest money for these services comes from the App Store, overseas (including Google’s default royalties), Apple Care, Apple Music and iCloud.
Revenue distribution in Apple services
I myself pay for the top tier of their Apple One Premiere combo subscription and consider it the best intangible spend.
Unfortunately, the 25% reduction in price does not apply to all markets. In Germany, for example, the iPhone 15 Pro starts at 1,199 euros, the iPhone X costs 1,149 euros at the start. Salaries at the same time for 6 years in numerical terms you remained there in place.
But even taking into account all the rates, the real cost of Apple smartphones is not growing, no matter how everyone thinks the opposite. And in Russia it also decreased by 12%. True, it will become noticeable only after the excitement subsides.
So far, the iPhone 15 Pro (our review) costs about 200,000 rubles, and this, of course, regardless of your mood not at any gate.
◇ Advice to everyone. Who needs to upgrade their iPhone to iPhone 15, who can easily manage it
◇ How much do iPhone 15 and iPhone 15 Pro cost in the USA, Europe, UAE and Japan
Source: Iphones RU
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.