iPhone 8 and iPhone 7S rumors

A concept iPhone 8 image from iPhone8guides.com

A concept iPhone 8 image from iPhone8guides.com

So far Apple has stuck to a tick-tock cycle when it comes to iPhone upgrades. One year a relatively brand new (mainly design wise) iPhone is released and the following year an update to the similarly designed iPhone is introduced. Recently after following the iPhone 6 with the iPhone 6S, the iPhone 7 was introduced. The rumors have been pretty strong that the next year iPhone, supposedly called iPhone 8 will be a significant re-design featuring a full body edge to edge touchscreen with no physical home button and with Touch ID embedded below the touchscreen. Now an interesting blog post from Macotakara suggests  that the 2017 iPhone lineup will feature both the "radically" re-designed iPhone 8 and an updated iPhone 7, called the iPhone 75 (in more colors including a new one in red) at the same time.

The 2017 iPhone lineup supposedly will feature both the "radically" re-designed iPhone 8 and an updated iPhone 7, called the iPhone 75 (in more colors including a new one in red) at the same time ( Image Source: MacOtakara.com)

The 2017 iPhone lineup supposedly will feature both the "radically" re-designed iPhone 8 and an updated iPhone 7, called the iPhone 75 (in more colors including a new one in red) at the same time ( Image Source: MacOtakara.com)

Apple has long been trying different things to diversify the iPhone lineup. They tried a "cheaper" iPhone 5C, then more recently the iPhone SE, etc. But while none of this was a dud, sales wise, they seem to not have had the effect Apple had hoped for in terms of market proliferation. Other than this approach, Apple has aho always sold one generation older iPhone at a lower cost to have an iPhone that is sold at "a more affordable price". Following this history you would expect Apple to sell the iPhone 7S (that is similar to the iPhone 7 but  improved) at a lower price point, say $549. And sell the all new iPhone 8 at the regular $649 price point (of course the Plus models will be $100 more).

However there is another possibility. Apple could sell the iPhone 7S (and 7S Plus) at the regular $649 price point and make the iPhone 8 the 'Pro' iPhone sold at a premium, $749 or even $849. The iPhone is the cash cow for Apple and this would be Apple milking it more efficiently. Also, this move, if it happens, would have had some precedence. Apple recently introduced new Macbook Pros with an increased price tag than the outgoing models. Both the 13" and the 15" base models are approximately $200 more than what their previos generation counterparts cost. While Apple has been known to do this sort of thing before, I've heard more than usual musings about this recently. In my opinion its too early to conclude that "Apple is trying to generate more revenue and profits from its products in light of saturating sales, by making its existing (popular) products more expensive". But its worth for us to keep an eye on this trend. Apple can take advantage of the brand loyalty that it has built up over the years this way, but it should be cautious not to over reap this advantage! The next year iPhone lineup will definitely shed more high on this topic...

In my opinion its too early to conclude that Apple is trying to generate more revenue and profits from its products in light of saturating sales, by making its existing (popular) products more expensive.