With the iPhone XS, Max, XR, Apple is testing the limits of your budget

The main feature of Apple in its new range of iPhone is not an upgraded camera, nor even a new design. It is a higher price.

The company launched Wednesday a trio of phones – the iPhone XR, the iPhone XS and the iPhone XS Max – in its most important event of the year. But no matter which iPhone you choose, you will end up paying more than ever. The starting price for the iPhone XR, which uses less expensive parts like an aluminum body and an LCD, is $ 749. This represents a $ 50 increase over last year's price of $ 699 for the iPhone 8, itself in full swing since 2016.

Similarly, the starting price of the Apple Watch has risen to 399 dollars for the new version of Series 4, which amounted to 329 dollars last year.

The most expensive products, which have once again set a precedent for Apple, are just the recent example of smartphone manufacturers regularly asking more to their customers. Apple led the charge in this area, making the headlines to present the first smartphone at $ 999. Samsung has matched that price with its Galaxy Note 9, but even old budget players like OnePlus have raised their prices.

"They certainly contribute to the price increase," said Tuong Nguyen, an analyst at Gartner, who noted that other phone makers are likely to increase their prices.

The higher prices partly reflect the inclusion of more sophisticated materials and components in these high-end phones, from advanced processors to sensors that enable face recognition. But phone manufacturers also feel that they can get out of it, especially since these phones have become an essential part of our lives.

Apple, after all, enjoys leading profit margins for its iPhones. Prices went from $ 649 to the entry-level iPhone 7 in 2016 to $ 1,149 for the iPhone X 256GB larger capacity last year. Starting at $ 999 for 64 GB of storage, last year's iPhone X had been the most expensive phone that Apple had ever sold.

At a certain point, however, higher prices will hit the wall if consumers begin to worry about the lack of real innovation, Nguyen warned. "They can keep pushing that envelope, but they have to provide proportional value at the same time."

Pricing is a sensitive issue given the spectrum of tariffs that threaten to increase the costs of introducing products into China. Apple has made the rare decision to warn that some of its products – Apple Watch and AirPods, but oddly enough, not the iPhone – would be affected by tariffs, as part of a growing trade war between the United States and China.

President Donald Trump replied in a tweet, urging Apple to manufacture its products in the United States. "Apple prices could rise because of the huge tariffs we charge China – but there is a simple solution where there would be a zero tax, and even a tax incentive," said Trump.

Rates were not mentioned during Wednesday's presentation.

The annual iPhone launch is Apple's biggest event of the year because the stakes are huge. Apple, which in August became the first billion US dollars, has grown strongly in recent years, largely thanks to the success of the iPhone. It needs this launch to continue its momentum and to connect to services like Apple Music and accessories such as AirPods.

These new iPhones

Among the three new iPhones, the iPhone XR is the most intriguing, as evidenced by the fact that it served as the finale to the event. It's the cheapest new iPhones, but it displays a 6.1-inch LCD screen and includes the Apple Face ID camera. It incorporates the new A12 Bionic chip, the industry's first computer-based processing unit to operate at a 7-nanometer architecture, which means it incorporates more transistors to run faster and more efficiently.

The phone is available in six colors – black, white, red, yellow, coral and blue – which evokes the iPhone 5C, the last time the company has made a splash with colorful models at low cost. The iPhone 5C was however down and Apple quickly abandoned the line.

What the iPhone XR has to offer, is its metal case (albeit aluminum) and the fact that it is bigger than the iPhone X of the year. latest. Its biggest drawback is the single-lens rear camera. photos mode. Apple says that you will have 90 minutes more autonomy on your iPhone XR than on the iPhone 8 Plus.

"Although it is a high-end product, this phone targets the bottom of the scale and makes it more acceptable for users who are reluctant to spend as much as possible on a phone," said Mr. Nguyen.

The iPhone XS, meanwhile, is the true successor of the iPhone X and is virtually identical to the model from last year. Once again, it has a sharper OLED screen. While the rear cameras remain the same, Apple has reviewed some of the software enhancements that it has added to enhance the features of the photo.

It starts at $ 999, just like the iPhone X from last year.

The iPhone XS Max is the oversized version of the iPhone XS. And with a 6.5-inch OLED display, it will be among the biggest smartphones on the market. The Galaxy Note 9, the first phablet on the market, displays a 6.4-inch screen slightly smaller.

The phone will start at $ 1,099. At the highest level, it will cost you $ 1,499.

"As Apple has shown with the iPhone X, people are willing to pay more for phones if they offer a better experience," said Avi Greengart, an analyst at Global Data.

Apple has also added a gold option to the XS and XS Max.

Apple Watch gets a new look

IPhones were not the only products to be in the spotlight Wednesday. Apple launched its event with the Apple Watch Series 4, which is the first to receive a new design since its release in 2015.

Inspired by the iPhone X, Apple has reduced the bezel around the screen, which has allowed it to expand the screen while retaining body shape.

Apple continues its momentum by focusing on monitoring heart rate through its electrocardiogram sensor, which has been approved by the Food and Drug Administration. The company said that even with the new screen and ECG support, it has the same autonomy as the previous version, which it estimates at around 18 hours.

"The most important feature of Watch in addition to the visible image area was its heart health function, particularly its ability to perform an ECG and to detect fiber optics. [atrial fibrillation]Said Patrick Moorhead, an analyst at Moor Insights & Strategy, "Add that to the detection and reporting of falls and I can see children buy one for their parents and grandparents.

The Series 4 is expected to further strengthen Apple's leading position in the smartwatch market, which failed to take off significantly. Apple does not reveal device sales figures, but the IDC estimates that nearly half of the 43.5 million smartwatches shipped this year will come from Apple.

New additions are not cheap. Beyond the starting price of $ 399, the version with an LTE connection starts at $ 499.

More and more, Apple sends the signal that if you want to save a few dollars on your next purchase of Apple products, you will have to turn to older products. But even then, they are thinner pickings. When the Apple site returned online after Wednesday's event, only the iPhone 8 and iPhone 7 remained available for purchase. Similarly, Apple killed the original Apple watch, leaving a $ 279 discount version available for Series 3.

If you want to stay in the Apple universe, it seems that you have to pay for this privilege.

The story originally published at 12:08 PT.

Updated at 13:12: To include additional analyst comments.

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