Apple‘s iPhone launching on Tuesday did not shock anybody.
The organization launched new iPhones a couple of months ahead of the important holiday season, as it has done every autumn because 2011. The new iPhone 11 models feature faster chips, better cameras, and longer-lasting batteries compared to 2018 models — solid enhancements, but not a revolution.
The main announcement Apple made on Tuesday was about cost. Two years later Apple broke new high-end floor with its first $1000 iPhone, Apple reduced the cost of its cheapest current-year iPhone. As soon as the iPhone 11 goes on sale for $699, it is going to be $50 less than the telephone it is replacing, the iPhone XR.
The iPhone price reduction gives Apple a fresh approach to acquire new clients into its system of connected products. It’s a move which makes sense as iPhone unit sales peaked in 2015 and have not fully recovered. (Apple does not even report iPhone unit sales anymore.)
The online services Apple launched on Tuesday were also lower in cost than anticipated, and give Apple a way to lure new clients with content that is more costly or impossible to get elsewhere.
Not everyone needs all of the bells and whistles
$699 for the iPhone 11 is a substantial price drop, particularly after Apple increased the cost of its second-best brand new phone from $699 for the iPhone 8 2017 to $749 for the XR this past year. Apple’s high-end telephones, the “Pro” versions, nevertheless begin at $999 and $1099.
The new iPhone 11 has a better camera than a year ago, and a faster processor, but most people won’t ever notice the difference. Smartphone cameras have been quite great for a couple of years and while some programs require a whole lot of processing power, a few of the most common programs, such as Facebook, or Snapchat, or Uber, do not.
Apple also dropped the price of last year’s iPhone XR to $599, revealing how cost drops can trickle down the lineup as Apple likes to keep older telephones around as cheap models.
That is just what it’s doing with its Watch hardware, too.
Apple’s newest watch, the Series 5, sports a screen you do not have to turn on to confirm the time, the more important statement might be that Apple is currently selling the 2-year-old Series 3 for $199 — much nearer to an impulse purchase compared to $399 or $499 for its new versions.
“While it doesn’t have all the bells and whistles as Watch 5, it will attract many first-time buyers,” Moor Insights analyst Patrick Moorhead said in a DM.
Services surprise on cost
Apple also revealed how much it was going to charge for its streaming TV service, Apple TV+, as it launches later this year: $4. 99 a month, less than Disney+ or Netflix, although with less content. Apple’s also likely to provide users a free year with buy on an Apple device, which will make the initial year free for many prospective subscribers, except Jennifer Aniston fans that are dedicated to Windows and Android. (The agency’s flagship program is a play called “The Morning Show” starring Jennifer Aniston and Steve Carrell.)
“The biggest news was the $4.99 price point for what look to be some unique titles. I do believe Apple will have at least one hit across the catalog, making it a no-brainer for customers in every ecosystem,” Morehead said.
Apple also introduced a surprisingly cheap $5 per month all-you-can-game subscription named Apple Arcade that parents can share with children at no cost. If the games are competitive, that is a wonderful value for families — instead of purchasing one console game for $60, you can find a year of access to a package of matches for the same price.
“The family-friendly titles and cross Apple platform are nice, but I believe the biggest news was the $4.99 per month price point for an all-family plan,” Moorhead said. “For premium Apple customers, this will be a no-brainer.”
Truly, dedicated Apple users — “premium Apple customers” — stay incredibly interested in whatever Apple must launch. Tuesday’s device launching was streamed on YouTube, and more than 1.5 million people saw it simultaneously. 1.5 million tweets in the event were sent, according to data from Sprout Social.
However, the most important question after Tuesday’s event is if the price cut for the iPhone 11 will lure new clients to get a new iPhone, eventually causing them purchasing a new Apple Watch or paying for Apple TV+ — or if Apple’s only introducing more choices for folks who already reside in Apple’s world.