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Shira Ovide

Think You Won't Pay $1,000? Apple's Prices Are Going Up Anyway

The iPhone maker is a master at increasing average revenue for each unit.
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Photographer: David Paul Morris/Bloomberg

I know what many of you are thinking: There is no way you'll pay $1,000 or more for an iPhone. Let's revisit this thought in six months after you've sashayed out of your local phone store clutching the new iPhone X, Samsung Note or another smartphone that is doing its best Chuck Yeager impression and breaking the smartphone price barrier.

Even if many consumers balk at the $1,000-and-up price , introducing a new model of super-luxury iPhone for the first time -- with a cost to match -- is the type of clever pricing strategy that keeps Apple thriving even if there's lackluster demand for its products. The company doesn't get enough credit for the work of actuaries, market researchers or whoever else is cooking up prices in unglamorous corners of Apple's headquarters. Hats off to you, nerds.