There is a lot of excitement about Apple’s unveiling of the new iPhone 8 next week. Many think it will be a big hit for Apple and a major sales driver. However, Barron’s is warning that the phone may unexpectedly struggle for a couple of reasons. Royal Bank of Canada did a survey of consumers to find out about their views on the iPhone. They showed a lot of excitement about the new model, with wireless charging and more memory being key points (interestingly, not the new screen). However, only 3% of respondents said they would pay the expected $1,000 price tag for the phone. Additionally, many said they would not upgrade because their current older iPhones are working just fine.
OxWFD: This is a reason to worry, but since almost everybody pays for their phone as part of a service plan, that cost gets spread out over many months. For that reason, we don’t think price will be a major concern. That said, the slower upgrade cycle because of good older phones may be.