The new Apple iPhone could set you back almost R13 000

APPLE is expected to sell its fanciest iPhone yet for $1 000 (R12 905), crossing into a new financial frontier that will test how much consumers are willing to pay for a device that has become an indispensable part of modern life.

The unveiling of a dramatically redesigned iPhone will probably be the marquee moment today, when Apple hosts its first product event at its new spaceship-like headquarters in Cupertino, California.

True to its secretive ways, Apple won’t confirm that it will be introducing a new iPhone, though.

In addition to several new features, a souped-up “anniversary” iPhone – coming a decade after Apple’s late cofounder Steve Jobs unveiled the first version – could also debut at an attention-getting $999 price tag, twice what the original iPhone cost.

It would set a new price threshold for any smartphone intended to appeal to a mass market.

Various leaks have indicated that the new phone will feature a sharper display, a so-called organic light-emitting diode screen that will extend from edge to edge of the device, thus eliminating the exterior gap or “bezel”, that currently surrounds most phone screens.

It may also boast facial recognition technology for unlocking the phone and wireless charging. A better camera is a safe bet too.

All those features have been available on other smartphones that sold for less than $1 000, but Apple’s sense of design and marketing flair has a way of making them seem irresistible – and worth the extra expense.

“Apple always seems to take what others have done and do it even better,” said Carolina Milanesi, an analyst with Cre- Some are prepared to pay the price, their phone is an extension of themselves, it’s their connectivity. ative Strategies.

But Apple isn’t the only company driving up smartphone prices. Market leader Samsung Electronics just rolled out its Galaxy Note 8 with a starting price of $930.

The trend reflects the increasing sophistication of smartphones, which have been evolving into status symbols similar to cars. In both cases, many consumers appear willing to pay a premium price for luxury models that take them where they want to go in style.

“Calling it a smartphone doesn’t come close to how people use it, view it and embrace it in their lives,” said Debby Ruth, senior vice-president of the consumer research firm, Magid. “It’s an extension of themselves, it’s their entry into the world, it’s their connection to their friends.”

From that perspective, it’s easy to understand why some smartphones now cost more than many kinds of laptop computers, said technology analyst Patrick Moorhead.

“People now value their phones more than any other device and, in some cases, even more than food and sex,” Moorhead said.

Longtime Apple expert Gene Munster, now managing partner at research and venture capital firm Loup Ventures, predicts 20 percent of the iPhones sold during the next year will be the new $1 000 model.

Wireless carriers eager to connect with Apple’s generally affluent clientele are likely to either sell the iPhone at a discount or offer appealing subsidies that spread the cost of the device over two to three years to minimise the price shock, said analyst Jan Dawson of Jackdaw Research. – AP