Writing for Macworld, the columnist who goes by the name "The Macalope" recently tore into an article published by BGR. Essentially, BGR noticed a bunch of negative comments about the pricing of Apple's (AAPL 0.77%) upcoming iPhone X on Reddit.
Some of these comments were from users claiming that because of the iPhone X's pricing, they were choosing to go with Android-based phones instead. Others showed users claiming that they're passing on the iPhone X and opting to go with cheaper iPhone options.
These comments formed the basis of BGR's argument that the iPhone X's price is "actually scaring away Apple fans."
Here's why Apple investors shouldn't panic.
Image source: Apple.
Small sample size
Apple ships over 200 million iPhones per year to customers across the globe; the iPhone installed base is surely multiples of that considering that most iPhone users don't buy new iPhones every year or even every two years.
The total number of subscribers to the r/Apple sub-Reddit is 477,330 -- less than a quarter of a percent of the total number of iPhones that'll likely be sold during Apple's fiscal year 2018.
Furthermore, not every current iPhone owner upgrades her or his iPhone every year. Some individuals wait two, three, or maybe even four years before upgrading to new iPhones, so as a percentage of the overall iPhone user installed base, the size of the r/Apple community is essentially zero.
Taking it a step further, not everybody in r/Apple is even saying that they're going to go with other smartphone brands or cheaper iPhones instead of the iPhone X.
To put it simply, there's not enough data here to conclude that the iPhone X's pricing is "scaring away Apple fans."
Apple fans have other options
The Macalope makes another good point in his takedown of the article in BGR: "[The iPhone X is] a high-end phone at a high-end price. It's not for everyone."
The fact of the matter is that Apple also released new phones -- iPhone 8 and iPhone 8 Plus -- that are substantially like the iPhone X in terms of specifications and capabilities for lower prices. On top of that, for customers that want even cheaper devices, Apple continues to offer its iPhone 7-series, iPhone 6s-series, as well as its iPhone SE devices at still more affordable prices.
Apple crammed a lot of new and compelling technologies into the iPhone X, and I think that it simply wouldn't have been possible for Apple to mass produce such a device if it were to sell it at a starting price of just $699 or even $799 (the iPhone 8 and iPhone 8 represent the best Apple could do at those price points).
There will likely be buyers -- I suspect quite a lot of them -- for the more expensive phone, as there will surely be many so-called "Apple fans" who want the best technology that Apple has for sale. There will also probably be a lot of non-Apple fans who just want to buy what is arguably the best smartphone on the market.
Here's the thing, though: Apple doesn't exactly lose if somebody opts for one of Apple's lower-cost devices because they couldn't afford, or simply didn't want to pay for, the iPhone X.
Moreover, if somebody opts for, say, a Galaxy S8 or some other Android phone because the iPhone X is priced too high, then guess what? Had Apple simply not released the iPhone X and rolled out just the iPhone 8 and iPhone 8 Plus (again, the best phones Apple could release at their respective price points), Apple still would've lost the sale anyway.
So, relax. To the extent that iPhone users buy the iPhone X instead of other, cheaper iPhones, Apple benefits. And, if they do buy cheaper iPhones, then that's not exactly a loss for Apple, either.
