When iPhone first introduced a device priced at $1,000 it seemed like Cupertino had gone crazy. But it turns out they were onto something. Not the first time.
It’s all thanks to the rise of device financing. At $25 per month, almost anyone can cop the latest device, whether its a new iPhone, Galaxy or any of the other mobile devices creeping up over the $1,000 mark.
Take this year’s holiday spending. No surprise this year digital sales set a new record at $3.7 billion over the Thanksgiving holiday, but those sales were driven in no small part by smartphones. More than a third of spending, totaling $2.1 billion, was on smartphones, with another 10 percent of revenue generated by tablet sales.
Turns out the market has blown through the $1,000 Mendoza line on devices and it’s driving increased revenue.