Yesterday Apple Chief Operating Officer Timothy Cook pointed out that people will be willing to pay $499 for the iPhone because it is worth it. Unlike the free phones that some providers offer which are worthless according to him.
I have always believed that the success of the iPhone will be determined by the quality of it. Cook expressed similar feelings by stating “If we offer something that has tremendous value, that is sort of this thing people didn’t have in their consciousness — it was not imaginable — then I think there’s a whole bunch of people that will pay $499, $599.â€
People still seem to wonder if there will be enough people willing to pay that price for a phone. In response Cook went on to compare the launch to that of the iPod and asked “how many $399 music players were being sold at that time?”
He makes very compelling arguments, but only time will tell if they can sell 10 million units in 2008. They’ve got at least one customer here, though I’ll be getting mine in June when they launch.
Apple Says IPhone to Sell Since Free Phones Worthless [via bloomberg]
I wouldn’t say that free phones are worthless. Free phones give owners exactly what they want – a phone lacking premium features.
The iPhone carries a premium price tag, but it also delivers premium features – that’s the way it is no matter how you spin it.
Look at Chevy and Cadillac; Toyota and Lexus, or VW and Audi. Cadillac, Lexus and Audi are basically the same cars with added premium packages and slight changes in design to “add value” and carries a MUCH HIGHER price tag.
I don’t see luxury car makers going out of business anytime soon – do you?
Apple selling 10M iPhones should be a cakewalk.
I agree with Huberty…and no I’m not an analyst.