The iPhone X represents a number of firsts. The iPhone X is the first iPhone in history to incorporate facial recognition. The iPhone X is also the first iPhone to do away with the home button, a staple of every single iPhone since the beginning. And economically, the iPhone X is the first iPhone to ever break the $1,000 threshold.  Recall, the iPhone X is available in two configurations: a 64GB model that costs $999 and a 256GB model that costs $1,149. According to reports, the iPhone X will be in extremely limited supply until early 2018, which may work out in your favor as you may need plenty of time to start saving up.

Predictably, some critics and pundits have been quick to exclaim that the iPhone X is priced too high. Some have even gone so far as to call Apple’s iPhone X pricing matrix “arrogant” and “out of touch.”

Addressing the issue of price, Apple CEO Tim Cook sat down for an interview on Good Morning America today and quickly discarded the notion that the iPhone X is exorbitantly or unfairly priced.

“It’s a value price, actually, for the technology you’re getting,” explained. “People are now paying for phones over long periods of times, very few people will pay the price tag of the phone initially. Also, most people trade in their current phone, and that reduces the price further, and some carriers even throw in subsidies and discounts.”

Fair points all around.

“When we look at it,” Cook continued, “the iPhone in particular has become so essential in our daily lives, people want it to do more and more, so we’ve built more and more technology in to be able to do it.”

To Tim Cook’s first point, the iPhone X price isn’t all that surprising when one looks at all the advanced technology Apple packed into it. Further, it’s not as if the iPhone X is the only smartphone Apple is selling this year. From the iPhone SE — which is more affordable than ever — to the iPhone 7 and iPhone 8, Apple 2017 smartphone lineup features devices across a wide spectrum of price points. That said, the fact that Apple’s most advanced smartphone ever released is priced at the $1,000 mark is simply par for the course. Remember, Apple’s entire business model is centered on delivering premium products at a premium price.

And besides, the top of the line iPhone 7 Plus model originally retailed for $949. In other words, Apple’s iPhone models have been steadily approaching the $1,000 threshold for some time now.

At the end of the day, if the iPhone X is overpriced, it will be reflected in underwhelming sales. But if iPhone X sales go through the roof, then clearly there’s a fair value in the device reflected in the price.

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