Tim Cook: Apple Wants to Serve Everyone with iPhone Pricing

iPhone Xs

The $999 price tag of the iPhone X managed to stir quite a bit of controversy last year. This year, Apple was expected to drop the price of the iPhone XS by $100 to $899. However, that did not happen and the company went ahead and announced its most expensive iPhone to date — the iPhone XS Max.

However, for the masses, Apple also introduced the $749 iPhone XR. Sure, it is not as cheap as many users would have hoped for but it largely offers the same experience as the iPhone XS at a lower price. In an interview with Nikkei, Apple’s CEO Tim Cook said that Apple wants to “serve everyone.”

“We want to serve everyone,” Cook said in an interview with Nikkei. “We understand that there is a wide range of what customers are looking for and a wide range of prices that people will pay.”

Cook also justifies the iPhone XS Max by saying that there are people who are willing to pay for innovation and cutting-edge features.

“We always thought … that if you provide a lot of innovation and a lot of value, there is a segment of people who are willing to pay for it,” Cook said. “For us, it’s a large enough group of people that we can make a reasonable business out of it.”

To cater to a wider audience, Apple reduced the prices of its older iPhones like the iPhone 7 and iPhone 8 post its Gather Round event. The iPhone 7 is now the cheapest in Apple’s lineup with a starting price tag of $449. The iPhone 8 starts from $599, with the Plus variant starting from $699. After this, there’s the iPhone XR which starts at $749 followed by the iPhone XS and XS Max for $999 and $1,099, respectively. Given that older iPhones continue to come with extremely powerful internals and the speed improvements brought about by iOS 12, these devices still have 2-3 years of life and support left in them.

The iPhone XS and iPhone XS Max go up for pre-order from September 14 and will hit the retail stores on September 21.

[Via Nikkei]