back to article Sacre bleu! Apple's high price, marginal gain iPhone strategy leaves it stuck in the mud

You may or may not know that the phrase "industrial revolution" was coined by a Frenchman. "La révolution industrielle se met en possession de l’Angleterre," wrote the economist Jérôme-Adolphe Blanqui. What irony, you may think. While Britain was inventing the modern world with its engineering, rich natural resources and …

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      1. Charlie Clark Silver badge

        Re: Even Samsung

        You're already paying £XX per month so you can have the flagship, I can't see that mindset balking at £XX+5-10, and perhaps an extra 50-100 up front.

        Actually, I suspect this segment will fragment (just as it was supposed to with the 5C) into a smaller number of people buying the X and most going for an 8 as the closest thing. Apple will be happy as long as people stick with an I-Phone (existing customers are likely to). They might not even be too disappointed if people get off the upgrade treadmill and go for £xx -10 a month with no upfront and keep their phone until it breaks. I suspect the number of people doing this is likely to increase as it has for every other manufacturer.

  1. Anonymous Coward
    Anonymous Coward

    People will probably still buy old-style up-market mechanical wrist watches for about GBP2k. The recommended annual service costs a few hundred - and the watch is away for a few weeks

    An ALDI analogue quartz one in a "waterproof" stainless steel case comes in at under a tenner. In my experience the latter is also more consistently accurate. Out of service for a couple of minutes every year while the battery is changed.

    My 1972 Omega Seamaster Cosmic is now relegated to "formal dress" ornamentation with the Wedgwood cameo cuff links.

    1. This post has been deleted by its author

      1. frank ly

        I wanted to buy a real leather strap for my 'Limit' wristwatch. I decided not to bother when I realised that leather straps cost more than I'd spent on the watch (£10).

      2. Anonymous Coward
        Anonymous Coward

        "Cheapskate."

        All things are relative. A George Daniels custom wristwatch starts at GBP95k.

        IIRC on the BBC program he said that accurate as his mechanical watches were - they could never beat a cheap quartz one in that respect.

    2. Dave 126 Silver badge

      > 1972 Omega Seamaster Cosmic

      Nice. I wish there were more cushion-shaped watches today - the market is flooded with circles-with-lugs.

      A smooth sweep quartz movement, sapphire crystal and 38 mm stainless steel case would suit me nicely. Basically, if Seiko were to make a '68 Chronostop. Lije, if Skagen made sensibly sized watches. Oh well. I'll have to commission a titanium printer to make me one!

      1. Sorry that handle is already taken. Silver badge

        @Dave 126

        > 1972 Omega Seamaster Cosmic

        Nice. I wish there were more cushion-shaped watches today - the market is flooded with circles-with-lugs.

        A smooth sweep quartz movement, sapphire crystal and 38 mm stainless steel case would suit me nicely. Basically, if Seiko were to make a '68 Chronostop. Lije, if Skagen made sensibly sized watches. Oh well. I'll have to commission a titanium printer to make me one!

        Cushion cases are still out there, you just have to look for them! Almost every micro does one these days. The only smooth sweep quartz movement I know of is the Bulova Accutron II, which is found in a handful of "retro" models with cushion and turtle style cases, albeit a bit larger than 38mm and without a sapphire crystal, for example the Surveyor is 41mm while the Lobster and Snorkel divers are even larger.

        Although given Seiko's obsession of late with re-issues and re-editions, you might get lucky with that Chronostop. Seiko also seems to be allergic to sapphire though.

        1. Roland6 Silver badge

          Re: @Dave 126

          >Seiko also seems to be allergic to sapphire though.

          Because they have their own Hardlex mineral crystal glass:

          Sapphire is near impossible to scratch but more brittle, thus prone to cracking or shattering if dropped wrong or from too high up. Hardlex isn't quite as scratch resistant as Sapphrine but it less brittle and thus unlikely to crack or shatter.

          From experience, a Sapphire glass is likely to shatter under a point load leaving the watch face exposed whereas the Hardlex will crack. Thus for me, I'll happily skip the Sapphrine price premium.

      2. Blotto Silver badge

        i'd love to be able to afford a grand seiko.

        funny how they just tell the time yet cost thousands, yet people moan about a hugely powerful computer in your pocket that can do all sorts for £1k.

    3. Sorry that handle is already taken. Silver badge
      WTF?

      @AC

      People will probably still buy old-style up-market mechanical wrist watches for about GBP2k. The recommended annual service costs a few hundred - and the watch is away for a few weeks

      You must be having a laugh?

      1. Anonymous Coward
        Anonymous Coward

        Re: @AC

        "You must be having a laugh?"

        IIRC the quote originally was six weeks for it to go back to the Omega service department. Nowadays it is so old that the local jeweller outsources to a specialist - who can't do the waterproof seal. Last time round, probably 10 years ago, the cost for a repair was GBP210.

        That's when I discovered such a watch new was in the order of GBP2k. It cost me GBP72 in 1973 when I was earning good money and wanted an automatic with a date setting to fix my work induced time blur.

        The shop's charge for a generic strap used to be GBP7 - then a new owner of the shop charged me GBP25 for the same thing. Next time it will be Timpson's.

        1. Sorry that handle is already taken. Silver badge

          Re: @AC

          The laugh is the idea that automatic watches need servicing on anything close to an annual basis.

    4. 0laf

      Nobody buys a mechanical watch because they need a watch.

      Nobody buys an iPhone because they need a phone.

  2. Steve Davies 3 Silver badge
    Thumb Up

    Ah, Mr O, the go to guy for an article

    to slag off Apple.

    Like Apple, El Reg does not change much over the years

    Glad to see you are on the ball as usual. Keep it up.

    1. DavCrav

      Re: Ah, Mr O, the go to guy for an article

      "Ah, Mr O, the go to guy for an article to slag off Apple. Like Apple, El Reg does not change much over the years Glad to see you are on the ball as usual. Keep it up."

      It's 1000 notes for a bloody phone. Anyone who buys this needs their sodding head examined.

    2. Anonymous Coward
      Anonymous Coward

      Re: Ah, Mr O, the go to guy for an article

      I do often wonder quite how much money Samsung pay The Register in brown envelopes to get them to slag off Apple.

      1. Mark 110

        Re: Ah, Mr O, the go to guy for an article

        The Reg doesn't hesitate to slag Sammy off when necessary as well. Apple are just an easier target due to the Apple Tax, the lock ins, the attempts to trade mark round corners, etc.

        Apple also blacklisted The Regs journos cos they didn't sing Apple PRs tune all the time.

        Its not like they don't invite it on themselves.

      2. Spanners Silver badge
        Holmes

        Re: Ah, Mr O, the go to guy for an article

        Nonbody needs paid to slag off Apple. They do it because the company and its followers are so annoying.

      3. Dan 55 Silver badge

        Re: Ah, Mr O, the go to guy for an article

        I do often wonder quite how much money Samsung pay The Register in brown envelopes to get them to slag off Apple.

        At a guess, it's the same amount as Apple pay The Register in brown envelopes to get them to slag off Samsung.

    3. Charlie Clark Silver badge

      Re: Ah, Mr O, the go to guy for an article

      Andrew has is generally pretty liberal and even with his criticism and certainly didn't spare Samsung last year. In the past, he's written glowingly of Apple's approach. The only hardware pieces that really jarred were the Windows Phone ones, which came across as a bit too close to the PR briefings.

    4. Anonymous Coward
      Anonymous Coward

      Re: Ah, Mr O, the go to guy for an article

      For the sake of editorial balance it's only fair to mention that Mr O also slags off Windows phones, and Blackberry, and (I had to search to find it) Android too.

  3. Anonymous Coward
    Anonymous Coward

    Will the X have an appeal beyond oligarchs, expense account braggarts, and the fanbois?

    I might share my hate of their business model and ethics (what ethicks?!) with 99.9% of the register readers, but I don't have much doubt their business model works (shear them short and often, as their coat grows fast) and will continue to continue to work for quite some time. Well, at least until the next world war. They created a mixture of both apple and i-cult of sorts, and the number of believers grows and likely to continue to grow in China, mostly. And the extra price will be even more appealing to pay for the believers who, let's face it, want to feel superior to those unsheared masses who can't or won't spend a grand, and hope that the price increase will help them maintain the feeling of being i-special. And all those wannabes will sell their blood to join the "elite" too. Apple just press the right buttons, so to speak, and price is one of them.

    1. MonkeyCee

      Re: Will the X have an appeal beyond oligarchs, expense account braggarts, and the fanbois?

      "but I don't have much doubt their business model works "

      Their main genius is managing to make phone purchases into a regular revenue stream rather than lump sum purchases. Well, making the providers do it, so they get to keep their hands clean.

      Never really got the Apple rage myself. Supported plenty of professional users of Apple kit, and they are much like pro users of PC kit. If it's a work tool, then there's a budget for it, and mid-high end laptops/desktops/phones are all within 20-30% price of each other.

      While "looks good on desk" is not a factor for many people, for some having the receptionist having a swish looking machine is vitally important. Even if it's all remote connections to the actual work boxen, the power of branding is strong.

      Apart from resellers, never anyone who paid upfront for their iPhone. Always on a contract.

  4. Anonymous Coward
    Anonymous Coward

    To be fair the industry standard fingerprint readers were pathetic at the time touchID was introduced as well. We'll just have to wait and see if Apple have provided as big a jump with FaceID.

  5. ratfox

    Apple will be fine as long as they have an important enough percentage that they can't be ignored by most app developers and accessories makers. The fact that their customers are generally rich helps make their percentage heavier.

    But it's a tricky game, and if they ever lose that, it will be near impossible to turn it around. Unlike desktops, smartphones don't command significant staying power in the workplace, so that when consumers leave, it's over.

  6. Pat Att

    I don't always agree with this author...

    But I believe Andrew has got this spot on. Hopefully this will be the product that forces people to re-evaluate their relationship with Apple.

  7. Mage Silver badge
    Coat

    Original success

    "The iPhone was unique because it could do one or two things (web and maps, but not much else) much better than the competition at the time. "

    No. It was the operator contracts with big or no data caps. Till then only rich people or corporate users could afford mobile data.

    The other major factor was the better interface, because they didn't care about annotation or handwriting recognition, both need the higher resolution resistive screen. Capacitive screens were nearly 20 years old. It was the idea of having the phone as primarily a consumer's data browsing device, not a corporate data entry device that was a winning shift.

  8. lbarry
    FAIL

    | It's also far, far safer and more convenient to use in the car

    No, it is not! Nothing is safe for use while driving a car and this comment completely discredits everything else you have written

    1. Joe Harrison

      I am a road-safety freak but even I can't agree with that. The primary reason for using a mobile phone in a car is surely for satnav, which definitely counts as part of "driving your car" given that the driving test is soon to include it.

      1. Anonymous Coward
        Anonymous Coward

        "The primary reason for using a mobile phone in a car is surely for satnav, [...]"

        Police Q&A article. "If the mobile phone is held in a cradle then it must not be touched throughout that journey. The moment you touch or handle your mobile phone as part of your journey, then in effect an offence is being committed."

        1. Dan 55 Silver badge
          WTF?

          So what's the difference between using a GPS app on a cradled mobile and using the GPS app in a car with a screen built-in to the dashboard or using a SatNav?

          And this article contradicts that:

          Mobile phones: What you can and can't do when you're driving

          Can you use it as a sat-nav?

          "It should be programmed with the route before you set off.

          "If it pops up with a message which requires just one press of a button, such as 'A faster route has been found. Accept/ Decline' you should be OK to do this, as you would with an in-built sat-nav.

          "But if you need to re-programme the route then pull over and stop somewhere safe to do it."

      2. Roland6 Silver badge

        I am a road-safety freak but even I can't agree with that. The primary reason for using a mobile phone in a car is surely for satnav

        Well, according to a police road safety course I attended a few years back, the use of mobile phones in cars was the biggest cause of driver distraction/inattention accidents, followed by SatNavs...

        i suspect the only reason the use of SatNavs will become part of the driving test, is to ensure that drivers get some training in the correct use of such aids. Ie. some of the Police/advanced driving skills become part of the normal test.

    2. WonkoTheSane
      Headmaster

      There's an even simpler answer when using a phone as satnav.

      These days, many car stereos have bluetooth to play music from your phone, act as a speakerphone when you get a call, etc.

      Android lets you add the stereo's bluetooth net as a "trusted zone", where it will auto-unlock & stay awake while connected. Especially with a specific car-friendly mode like Android Auto.

      Apple likely has similar functions.

  9. Anonymous Coward
    Anonymous Coward

    £999 or $999

    Why not just sell it at 1000?

    If someone is stupid enough to pony up 999 then they would be more proud in telling people it cost a grand and lets be honest iPhone users love to show off.

    Sent from my iPhone.

    1. Dave 126 Silver badge

      Well, they once sold a computer for $666 so it's a tradition!

  10. Anonymous Coward
    Anonymous Coward

    Facial recognition - "live" sensing

    Does the iOS version have the same feature to defeat holding up a photo - "liveness check" ???

    Honestly, for a feature that I was using in 2014, it's a little irritating to hear people now talking like Apple have just invented it.

    1. Naselus

      Re: Facial recognition - "live" sensing

      The facial recog is 3D, and so should be able to tell if you're holding up a 2D image. Though it was also supposedly super-accurate and reliable even if you covered your face/grew a beard / underwent major reconstructive surgery, and then failed to unlock at all during the demo, so...

  11. Sorry that handle is already taken. Silver badge
    Devil

    Facial recognition

    A coworker with a beard had facial recognition enabled on his phone.

    I grew a beard.

    He soon disabled facial recognition.

  12. Sil

    The market is big enough

    The iPhone X is unremarkable for its price, but Apple can count on enough fanboys & girls as well as people purchasing a status symbol first, and a phone second, just like the 1k5 Hermes Apple Watch.

    I would worry more about the iPhone 8 and 8+, which don't seem to generate a lot of buzz, even among Apple's customers, as far as I can see.

    1. Naselus

      Re: The market is big enough

      ", just like the 1k5 Hermes Apple Watch."

      The Watch was a bit of a flop, though, no? Much like the entire wearable market turned out to be...

  13. Anonymous Coward
    Anonymous Coward

    Who's paying, not buying!

    My tech savvy friend recently asked me which Android phone I'd recommend (as a fairly long term Android user).

    As I started to answer he proudly told me that you can bend an iPhone into close to 90 degrees with your bare hands!

    My questioning look prompted him to tell me that he'd done exactly that to his pink iPhone 6/7 whatever, as he'd got yet another annoying call from his wife that evening, and bent the phone before throwing it in the traffic. (Drunk/ angry etc)

    "I'm fed up of having last year's iPhone everytime my wife makes me but her a new one, she doesn't even do anything but call and browse Facebook"

    I have a feeling he's wondering where $1000 is gonna come from right about now! I know her and she doesn't care, just so long as her friends see the latest in her hand. Apple know the buyers are often not the payers especially in Asia.

  14. namke

    "Does the X astonish in the same way? Does it have the same lustre? You must be kidding."

    Does any phone nowadays? No matter how much <insert phone vendor here> crows about their new releases, do they really make a compelling argument to go and buy a new shiny??

  15. Flocke Kroes Silver badge

    iPhone's early unique selling points

    Apple were able to convince the US carriers to stop blocking features that had been standard in Japan for years. I am not sure why people are comparing early iPhone to Microsoft's attempts. A more obvious comparison would be to Symbian.

    The other unique selling point was the exorbitant pricing. The Apple logo was clear statement: "I have money to burn". Other brands may have a flag ship model, but people would have to do some thinking because the same logo is also on bargain basement phones.

    The new model is a step back to what made the iPhone such a success. If anything, I think Apple did not go far enough. The price should be higher and they should cut some of the features. I am sure that what they have done this year will be wildly successful and Apple customers will be able to queue up with breathless anticipation for something more expensive next year.

  16. Anonymous Coward
    Facepalm

    Get real!

    It's not magical and it's not game-changing

    1. Jason Bloomberg Silver badge

      Re: Get real!

      One thing I would give Apple credit for is doing everything far better than what the competition was doing. That made their products appealing and the higher cost for that acceptable.

      Over the years that has devolved to paying over the odds for having the status of owning an Apple product and has now moved on to merely being a gullibility tax.

  17. Anonymous Coward
    Windows

    Yes!

    This weak effort will me music to the ears of MSFT, ready to launch the Surface Phone to disenchanted fanbois.

    1. rmason

      Re: Yes!

      Surface phone??

      sign me up for one!

      Well, two, the first one will break, won't it?

  18. Wyrdness

    As an iPhone user...

    As someone who's owned iPhones for the last 10 years, my desire to upgrade is inversely proportional to the model number.

  19. Anonymous Coward
    Anonymous Coward

    It's even got a bezel

    The big story was that it was to look like a sheet of glass ... but we ended up with a bezel and a cut out compromise. In order to achieve this compromise they tried to get touch-id through glass and failed - necessitating the step backwards that is face based security.

    Why the wireless charger isn't even ready, when every man and his dog makes them is just a mystery to me, but suggests internal chaos at Apple.

  20. Number6

    I'd like something with the feature set of a Galaxy 4 only with a modern CPU and memory capacity. A lot of the newer ones are too big - the 4 fits in my pocket nicely and the screen is a reasonable compromise between portability and readability. None of this face or fingerprint crap for unlocking either. Dual-SIM would be nice, unless one of the carriers is prepared to offer me two numbers on a single SIM.

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