If you think paying $749 for an iPhone that has an LCD, comes with a single camera on the back, and doesn't have 3D Touch is too much, you might be wrong.
Because, as Goldman Sachs analyst Rod Hall reports, the iPhone XR has been priced too low and could affect Apple's profits, especially since it is expected to sell much more than other iPhone models.
Hall initially predicted that the iPhone XR, often referred to as the "affordable iPhone," would cost around $849 in the United States.
While from a consumer perspective the iPhone XR could be considered a very expensive purchase, Apple should have increased the price of the device, Hall explains, otherwise the average selling price may decline in the coming quarters.
“Apple introduced the new iPhones as expected, but the new LCD XR model was priced lower than we had thought possible. This, in our view, will lead consumers to replace the potential purchase of the iPhone 8 and 8 Plus and leads us to reduce our ASP [average selling price] and profit estimates,” he said.
The older iPhones and iPhone X could actually push more people to the iPhone XR, mainly thanks to the new hardware and modern approach the device takes compared to previous generations.
The iPhone XR comes with an edge-to-edge design with a notch at the top of the screen and Face ID instead of Touch ID.
The iPhone XR will be available for pre-order in mid-October, with shipments expected to begin on October 26.
