iPhone Release Pricing Trends
Do you really need a top of the range iPhone?
Now there’s a question! With the iPhone XS and XR launching many of us will be wondering if we need to upgrade. Consumers and businesses alike will have their own ideas about whether they want or need the latest device. Apple and Samsung predominantly do a great job of flooding our senses with glossy advertising, the lure of even better tech and of course, the all-important status symbol. But do you really need it?
We talk to many businesses owners who come to us with pre-conceived ideas about which handsets they’d like for their fleet, however when we delve deeper into their actual usage requirements many of the features on a top of the range iPhone or Samsung Galaxy are just not needed.
What happens to pricing when new models are launched?
There is a common misconception that when a new model comes out, the old one automatically gets drastically reduced. Well this is not what actually happens. We’ve seen iPhone prices rise roughly 20% year on year for the latest release, compared with only a 5% drop in price on the older models. Do your homework and get some advice about comparative devices and manufacturers based on the spec of the phone not just within one brand family. There are many challenger brands coming to market now with fantastic spec for a much better price. Check out Huawei and Google for some great Android alternatives to Samsung.
As a business owner or decision maker for your company’s mobile fleet you need to have an objective view of what your workers are using their phones for. No point shelling out for a phone that can do fancy animated graphics and take amazing video footage when what you really need is something that will last all day without a charge and support your business critical apps.
Still really want that new iPhone?
If you’re still set on a new iPhone or you have a fleet that is entrenched in the iOS world then perhaps consider a mix of models from iPhone 7 through to the new Xs. Often providers will have access to warranty replacement stock on older models which is officially classed as pre-owned but generally it’s 14 day returns and is untouched. Good as new for a much better price. For example, a recent deal we did for one of our customers included 20 x iPhone 7 128GB models at the reduced price of £394 vs £500 retail, a massive saving of £2280. That saving there could fund a couple of new iPhone Xs handsets for those that simply have to have the latest gadget!
The truth about “mid-tier” phones
You may hear reference to the term mid-tier when talking to phone providers which is industry speak for a more budget friendly device, often with very competitive core spec without some of the frills. Our current favourite is the Samsung Galaxy A6 2018. So an example here if you have a fleet of 15 workers and you look at iPhone 7 vs A6 the costs is the first consideration: £450 for an entry level iPhone 7 vs £217 for the A6. Big Difference. What about when you look under the bonnet, what does your £450 get you over and above the cheaper Samsung?
Well, clearly we’re not comparing apples with apples (pardon the pun) so naturally an iPhone 7 is going to be superior on the processor and display front as a premium device. It all depends what you’re looking for in a company mobile. Most employees that have a company phone will also have their own personal device, so all these features aren’t necessarily key, so why pay for what you don’t use? On the other hand, for those who have the one phone for work and personal it’s a different consideration and these are the people who will probably gravitate towards a higher end device.
We’d always encourage you to ask yourself these questions:
Why do you need a new company phone?
What does the old one not do that you now need?
How important is brand?
Have you compared the battery life and operating system compatibility for your key business apps on your preferred device?
Does the device and network support WiFi calling if some of your workers are in patchy coverage areas?
So then, lots to think about and to carefully consider before emptying your coffers on a fleet of new phones. Get some advice and don’t be blinkered by brand – you could be spending out on tech that simply will not get used.