The iPhone is Apple Doubling-Down On What It Does Best

This piece from Ben Thompson pairs nicely with the one just posted from Horace Dediu. It argues the higher priced iPhone more from the consumer side, but a lot of it is the same basic thrust. The iPhone is not a single device purchase, it’s a larger experience or even service that customers are hiring for a host of different jobs. As such, Apple still feels it can command a premium price, because it has all the parts whereas competitors only have some. This dependence on “servitization” does put Apple at a more striking disparity in the developing world, but for now they seem to think that is worth the risk. Perhaps as the rising tides lift all boats, Apple feels they will maintain their aspriational position that will be increasingly more in reach for more people.