$30 billion in discretionary spending will be stolen from other companies by the iPhone X, predicts Morgan Stanley. Because the phone will be in high demand and its cost could keep consumers from buying additional products, other companies may lose out.
Apparel is a wallet share donor to other categories, with cell phones/technology and services being two of them. 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.- Morgan Stanley
The analyst anticipates a particularly large number of iPhone X purchases during the holiday season because of its updated form factor, AR features, and greater battery life. This is the largest iPhone upgrade in years.
Its $1000+ price tag is a key part of why the smartphone is likely to remove $30 billion from the pockets of other industries. Consumers will be dissuaded from buying other items given how much they're spending just on the handset.
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