[ben_w]

> Why would you expect Apple to give up their margin?

Price go up, demand go down: https://en.wikipedia.org/wiki/Supply_and_demand#/media/File:...

(The iPhone is only a premium brand, not a Veblen good).

[frollogaston]

That's if iPhone costs go up and there are no other changes. As the parent said, competitors' products are also going up in price. I just don't consider the products interchangeable enough. Apple has its margins for a reason.

Also even if they had pure competitors, demand for high-end smartphones is pretty elastic. People will really just buy fewer phones if they get more expensive.