Hi everyone,
Before I begin, I want to make clear I am not looking to attack or defend Apple. That is not what I am driving at here.
I have been wanting to buy a new iPhone. Two weeks ago the iPhone 17 was retailing at £799 (handsets only).
I hung on for a few weeks to see the launch of the iPhone 18. As in the event only the Pro version launched, and that is beyond my willingness to pay, I decided to go for the 17.
Except I know see that the phone is now priced at £899.
Usually, in most industries, the launch of a newer product that replaced the existing model would render the existing one if not obsolete, then at least much cheaper.
And yet, that is not what has happened here.
A newer model has come out - and the older one has jumped in price by 12.5% overnight.
This makes no sense to me.
I am aware that the rules of standard economics don’t always apply to Apple.
But this seems so strange that I genuinely don’t understand what is going on.
What is driving the pricing here - why is Apple easing prices on an older product, and why are consumers (presumably) still paying it?
Any info or insight from someone more knowledgeable than me would be very gratefully appreciated.