Just because you’re paying for the iPhone X in installments, it doesn’t make the phone less expensive. It may seem more affordable that way, but you still end up paying the full price. Even if you trade-in or sell your phone to finance the iPhone X purchase, the phone is still putting a dent in your budget, even if you don’t feel it right away.
Because the iPhone X launches less than two months before Christmas, it’ll “steal” money from other companies during this busy shopping season. A new report shows the iPhone X could take nearly $30 billion from other businesses.
Regardless of how you’re buying the iPhone X, the extra money you pay for it compared to the iPhone’s previous entry price is money you would otherwise spend on products from other companies during the Christmas season.
A new research note from Morgan Stanley seen by Business Insider explains that the iPhone X will have an impact on other businesses this Christmas.
“Apparel is a wallet share donor to other categories, with cell phones/technology and services being two of them,” the note says. “We see this upgrade supercycle coupled with the very high $999 iPhone X average selling price as a significant headwind to Specialty Retailers and Department stores in the fourth quarter.”
Analyst Katy Huberty predicts a supercycle for the iPhone X, with plenty of customers willing to upgrade to the iPhone X thanks to its distinctive features, including a new design, increased battery life, and augmented reality.
Huberty thinks that the iPhone X will “absorb” $30 billion of discretionary spending during the holiday season. Customers may be thinking “‘I just bought a $1000 phone last month, I don’t really need another pair of jeans,’” the analyst explains.All three new iPhones will take away some $52.6 billion of spending from other categories.
The iPhone X may continue to affect other businesses after Christmas as well, as long as Apple struggles to meet demand.