The Great Lesson of the iPhone 8

Apple's release of the iPhone models 8 and X together provides one of the great marketing lessons of the year. 

In hopes of commemorating the 10th anniversary of the product that still comprises the majority of Apple's earnings, Apple decided to release is a special model (iPhone X) along with its more regular, sequential successor to the iPhone 7 (iPhone 8). The problem? Products are not evaluated in a vacuum. They are evaluated in connection to a reference point. (The great Dan Ariely gives a fantastic TED talk on this principle.)

As a result, the iPhone 8 does not seem all that new or leading-edge and demand has been poor as people have decided to wait and pay extra for the iPhone X. The iPhone x, however? Demand is amazing as it's juxtaposition to the 8 makes it seem even more upscale. 

Chances are, Apple was worried about only having a $1,000+ model on the market. But if the 8 continues to push demand for the X, the investment in the 8 will have paid off handsomely.