Apple's New Strategy: Sell Pricier iPhones First (wsj.com)

The staggered release gives the company a month to sell higher-end models without cheaper competition from itself. WSJ: This year, according to people familiar with Apple's production plans, the company prioritized production of its two pricier OLED models, the iPhone XS and XS Max, whose prices start at about $1,000. Both will hit stores Friday, followed five weeks later by the least expensive new model, the XR, which has an LCD screen and a starting price of $749. The staggered release gives Apple a month to sell the higher-end models without cheaper competition from itself. It also simplifies logistics and retail demands and could strengthen Apple's ability to forecast sales and production of all three models through the Christmas holidays, analysts and supply chain experts said. "It's sort of a Dutch auction," said Josh Lowitz, co-founder of research firm Consumer Intelligence Research Partners, referring to the practice of starting with a high asking price, then lowering it until a buyer accepts. "The people who are most committed will pay to get early access. Then you get to the people who are making a choice and may settle for the $750 phone. This could become the new normal."

Comments

It seems like a great idea

[SuperKendall]

I don't really see a downside here, to me it seems like an excellent approach - by selling the top end models first, you are treating them as something more special.

Those who want to wait for the slightly lower priced Xr won't mind a delay much, and they can judge if it's worth spending more to have a nicer model earlier.

Personally I am really curious to see both the Xr and Xs Max side by side, to compare screens... I don't plan to get a phone update this year but I think seeing those two would be a really good way to contrast a great OLED against a great LCD screen. Some have said OLED screens do not appear to be quite as sharp and I think I can see what they are talking about, but the two latest larger models should present the best side by side comparison to really tell.