Comment by ksec | Hacker News Reader

Comment by ksec | Hacker News Reader

Not sure I agree. Despite $400 being the entry level price for new iPhone and that is quite affordable and offers amazing performance. It is by no means commoditising. In 2017 the ASP of Xiaomi Smartphone was barely over $100. In the world of Smartphone that is inclusive of China and India, $400 is considered as premium segment. Even if you took out China and India and only look at Android, $400 is still considered as mainstream / premium.

And judging from Apple's past experience and strategy, they are unlikely to lower the price any further. The iPhone SE was $399 in 2016, $399 in 2020, and likely still be $399 in 2024.

The true commodity Smartphone segment still has a long way to go before reaching iPhone SE quality. And unlike Cars which has comparatively minimal advance, you can still use your car from 2000s, your 3G phone will likely not be getting much bandwidth due to Spectrum reframing.

>Even if you took out China and India and only look at Android, $400 is still considered as mainstream / premium.

But there are plenty of other developing countries other than china/india, which means the number is still being dragged down. You'd need to get ASP for android phones in US or western europe only.

For US specifically, $400 will likely still be considered Mainstream. Vast Majority of the Phone sold in are through carriers, and prices are mostly masked behind a monthly contract up to 30 months. So most of the phones are actually $500+.

But there are a substantial and growing market of non-contract and prepaid that are under $300.

I dont have Data from Western Europe, but in terms of iPhone usage it is considered to be low compared to US, and they have official access to Chinese Brands from Huawei, Xiaomi, BBK. Would not be surprised if the actual distribution ( excluding tax ) would be even lower.

You can buy a new iPhone 6s for $129 from Walmart, lccked for a year to one of their prepaid plans ($20/month). With a free year of Apple TV+, if you care.

And strangely enough. The 10.2 inch iPad is $329...

In fairness, the 10.2 inch iPad with cellular is $459 ...and only has half the storage.

I wouldn’t use Xiaomi’s early pricing strategy as a proof, just checked the price of Mi 10 and it is definitely higher than iPhone SE.

Mi is their high end line Redmi is their budget midrange line

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