Apple Raising the Bar on Pricing With New Products
Brian Colello says he'll be keeping an eye on early sales of the iPhones, and he sees the firm as overvalued today.
Brian Colello: Apple had its usual product announcements yesterday with three big product launches. The first being the iPhone X, the second the iPhone 8 and 8 Plus series, and then the third is the new watch series 3 with LTE connectivity.
The iPhone X is coming in starting at a price of $999 for 64GB for the higher storage model, which will probably be higher selling for these more affluent customers that'll start at $1,149. When you tack on AppleCare at $199 it becomes a device that's $50 to $56 per month or in the $1,350 range. So we're starting to get toward MacBook pricing for these iPhones.
Brian Colello does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.