If you want to push margins, larger devices selling for higher absolute prices are a better option.
Imho, it's harder to convince people a "smartphone" is worth USD $1k+. But a laptop / tablet replacement? That's reasonable(!) compared to a MBP...
Given Apple's build costs don't scale with device size (++screen, +battery, +gpu/mem), selling the same internals in bigger devices for more is a win.
So you continue expanding device size and price until you discover the market boundaries. And unlike Samsung S*/Note, Apple has the ability to say "These are the only form factors this generation, if you want the newest iPhone..."
> Given Apple's build costs don't scale with device size (++screen, +battery, +gpu/mem), selling the same internals in bigger devices for more is a win.
Only if those customers buy the bigger device, and if smaller phones require the latest internals. If these people stick with their older/smaller devices, you've lost a sale. If you can get away with 2-year-old internals in these smaller phones, it could be much cheaper to produce than the latest flagship.
I don't know what Apple's margins are on these devices, but a couple months ago AT&T was offering the current (final) iPhone SE for $50.
> Apple has the ability to say "These are the only form factors this generation, if you want the newest iPhone..."
True, but the SE was never about appealing to users who wanted the newest iPhone.
Imho, it's harder to convince people a "smartphone" is worth USD $1k+. But a laptop / tablet replacement? That's reasonable(!) compared to a MBP...
Given Apple's build costs don't scale with device size (++screen, +battery, +gpu/mem), selling the same internals in bigger devices for more is a win.
So you continue expanding device size and price until you discover the market boundaries. And unlike Samsung S*/Note, Apple has the ability to say "These are the only form factors this generation, if you want the newest iPhone..."