The already crowded smartphone marketplace is set for three fantastic releases in the remainder of 2017, with the iPhone 8, Galaxy Note 8 and Google Pixel 2 all due for release. The release date of these smartphones may not have been completely finalized, but by the end of October it is expected that all three will be available in the stores.
While the features, functionality and designs of the three devices will undoubtedly impact massively on their sales potential, pricing is also extremely important. Apple has never previously been particularly aggressive with its pricing policy, but it may have to take into consideration a balkanizing and increasingly complex and competitive marketplace with the iPhone 8 price.
Meanwhile, Google is attempting to find its feet in the smartphone marketplace, while being up against some of the behemoths of the industry, and Samsung is looking to build on its recent sales gains and excellent performance. It all adds up to a climate in which the pricing of the iPhone 8, Galaxy Note 8 and Google Pixel 2 will be absolutely critical to their ultimate success.
Continued from part one... Q1 hedge fund letters, conference, scoops etc Abrams and his team want to understand the fundamental economics of every opportunity because, "It is easy to tell what has been, and it is easy to tell what is today, but the biggest deal for the investor is to . . . SORRY! Read More
iPhone 8, Galaxy Note 8, Google Pixel 2 compared
Apple is in the privileged position of being the most recognizable brand in the consumer electronics world. Indeed, Apple had the enormous achievement of displacing Coca-Cola at the head of the authoritative Interbrand ratings of the world’s most prestigious brands. No other technology company can come remotely close to either the brand identity or customer loyalty that Apple has established, no matter how much this can be a source of derision for Apple knockers.
If there is one perennial criticism of Apple, it is that the consumer electronics giant delivers devices that are extortionately priced. Even peripherals for iDevices tend to be rather expensive, and the closed shop nature of Apple products means that there can often be few alternatives available. And this will probably be reflected once more with the iPhone 8 price.
Unfortunately for Apple consumers, the strength of the Apple brand and its position within the consumer electronics marketplace means that it has rarely been receptive to such arguments. Apple products remain rather pricey, and early reports on the iPhone 8 price suggest that this will once again be the case.
According to rumors, the iPhone 8 price will be in excess of $1,000, at least for one model of the generation. The iPhone 8 OLED version is expected to retail at a pricetag over $1000, which will probably be $1,049 if reports are to be believed. This would mean that the iPhone 8 smartphone would retail at $949, and we can possibly expect the iPhone 7S range to come in at a lower price point than this.
Whether Apple can really afford to release such an expensive smartphone is debatable, but Microsoft just announced the priciest video games console of all time in the shape of the Xbox One X, so clearly there is still huge consumer enthusiasm for high-equality, premium devices.
Samsung has recovered admirably from the Galaxy Note 7 exploding fiasco, but there is absolutely no doubt that the Galaxy Note 8 is one of the most important device releases in the history of the corporation. If the Korean company is to reinvigorate the Galaxy Note branding, it must deliver an outstanding device, while sales of the Galaxy Note 8 must also restore faith in the device range.
This would seem to suggest that the Galaxy Note 8 should be priced at a similar point to the last generation Galaxy Note 7, almost as a goodwill gesture following the unfortunate exploding nature of that handset. however, it has been reported that despite the best efforts of Samsung to ensure that this is an affordable handset, we can still expect the Galaxy Note 8 to retail at a slightly higher price tag than its predecessor.
So a reasonable estimate for the Galaxy Note 8 would be a recommended retail price of around $899. Although this would still be a sizeable outlay for the average mobile phone consumer, it would still give the Korean corporation a $100 price gulf to its great Apple rival. While Samsung has performed extremely well in terms of sales, and has undoubtedly become an extremely esteemed smartphone manufacturer, it cannot yet claim the brand loyalty and penetration of Apple, and therefore must cut its cloth accordingly.
It perhaps speaks volumes about the market penetration of Google in this sphere that it is rare for the media to refer to the Pixel range without pre-fixing it with the name of the manufacturer. When iPhone is written, everyone instantly knows precisely what is being referred to, and even the Galaxy range has become a household name.
But Google has more to do to ensure that its smartphones can compete with the market-leaders, and it is this above all else which will impact most strongly on its pricing apology for the forthcoming Google Pixel 2. In all honesty, Google is not yet in a strong position to compete with Apple and Samsung, and thus must balance its intention to produce the best smartphone possible with delivering a price tag that is more affordable than the iPhone range in particular.
Thus, early rumors on the Google Pixel 2 have suggested that the device may retail at around $650. This does seem a rather low figure considering that a quad HD wraparound display and other impressive specs are being linked with this device. However, Google can afford to carry its mobile phone division to some extent considering its overwhelming success, and this means an extremely reasonable price tag is feasible.
Of course, there will be more than one Google Pixel release, although even this is up in the air at the moment with some debate over whether the Google Pixel XL 2 will ever appear. However, we can certainly state quite confidently that none of the Google Pixel 2 handsets will touch the $1,000 figure being linked with the iPhone 8.