USD 399 for an unlocked new iPhone (with latest hardware!) in an of itself is a great, almost revolutionary price regardless of storage capacity. To the degree where I actually wonder whether it's going to have negative effects on their iPhone 6(s) sales.
I'm sure Apple has been running very sophisticated simulations on different model pricing, but 399 has so far been really the ballpark of Android phones.
Therefore I think what we're observing here is nothing less than the beginning of a new phase of iPhone strategy: They are starting to reach down from the top into the middle class segment whereas everybody else in the smartphone industry is trying to move up segments (so far with very limited success). Now Apple's brand is playing for them as they move down whereas everybody else's brand is playing against them as they want to move up.
I'm sure Apple has been running very sophisticated simulations on different model pricing, but 399 has so far been really the ballpark of Android phones.
Therefore I think what we're observing here is nothing less than the beginning of a new phase of iPhone strategy: They are starting to reach down from the top into the middle class segment whereas everybody else in the smartphone industry is trying to move up segments (so far with very limited success). Now Apple's brand is playing for them as they move down whereas everybody else's brand is playing against them as they want to move up.