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New York (CNN Business) - How much does the iPhone 11 cost?
At $ 699, the iPhone 11 is Apple's new cheapest smartphone since iPhone 8. And that says a lot about the changes in consumer habits and challenges Apple faces, and how it is responding to them.
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Last year, the days of new iPhones under $ 700 seemed like something from the past. The iPhone XR cost $ 749, which makes it the most expensive basic level iPhone of all time.
But this year, with the iPhone 11, Apple returned to the price of $ 699 that it introduced in 2017 with the iPhone 8. In six of the previous seven years, between 2010 and 2016, Apple had offered its cheapest iPhone for $ 649 (except in 2013, when it cost $ 549).
In 2009, the new basic level iPhone cost $ 599, and in the previous two years it cost $ 499.
Some customers feared that Apple was putting them aside by abandoning the price of less than $ 700. The people has kept their phones for longer and Apple has looked for ways to increase revenue as people buy fewer iPhones. Page 5 of 10 people are getting more iPads! ''. More information. Page 7 More people buy iPhions less than people can. More information on this product is expected to help you pay less !. More information is available for you to buy it for free in the future. Apple. More info. "Apple has been using the phone number." He has been looking. More. It looks like it has more money in the process of growing. Page 3. More than that, it has reduced the number to pay for iPhions to increase their revenue. 'S. The price is lower than those. ”“ For more.' "The price is lower and more than the other. Page 3 of them. The best way to get to do the same is. More than that, they'll have a bigger amount of revenue on Apple.”., Apple has been looking for better revenue. Page 7 More! I don't know how. You buy less of iPhions! More
IPhone is not exactly cheap. Getting the best and biggest iPhone has become an expensive proposition. This year, like last year, Apple will sell a version of the iPhone that costs $ 1,449. The iPhone 11 Pro will start at $ 999 and the iPhone 11 Pro Max at $ 1,099.
Apple also surprised the public with some other offers cheaper than expected. The third generation of the Apple Watch costs $ 199, being the first time Apple has sold a version of its portable device for less than $ 200. The new iPad costs 329 dollars. And the company is charging $ 5 a month, each, for Apple TV + and Arcade, its new streaming and gaming subscription services.
These prices are much lower than many analysts expected. Daniel Ives, a Wedbush analyst, called the price of Apple TV + in particular as a "show stopper" in a note for investors on Tuesday, adding that investors expected it to cost up to 9.99 per month.
Apple keeps its basic level prices low for a couple of reasons.
- This is the price of all iPhone, Apple TV + and other new Apple products
IPhone sales continue to decline. The recent weakness in China, due to the slowdown in the second largest economy in the world, is guilty, in part. But iPhone sales have had a downward trend worldwide for several years.
That is why the company is looking to expand its base, offering a lower cost device for the lower market sector. The iPhone 5C, iPhone SE, iPhone 7, iPhone 8 and iPhone XR represent other recent attempts by Apple to offer a lower-cost version of the phone. And, traditionally, Apple has offered earlier versions of its products at lower prices, allowing customers to buy last year's technology for around $ 100 less.
Apple has used slightly different strategies with its low-end devices: the iPhone 5C, XR and 11 used lower cost materials than the other phones that Apple offered in their respective launch years. The iPhone SE, 7 and 8 maintained the same designs as previous versions of the iPhone, and Apple has just updated its internal components.
He did the same with the iPod a decade ago, presenting the Mini, Nano and Shuffle versions of the MP3 player.
But cheaper products will not be enough to revive the marked sales of the iPhone. Therefore, Apple needs to find other ways to make customers buy products. Recently, Apple has added subscription services, including Apple TV +, Arcade, Apple Music, Apple Care and iCloud to boost its front-line sales. As a result, Apple managed to increase its overall revenue in the most recent quarter, even when iPhone sales fell 12%.
By charging only $ 5 a month for Apple TV + and Arcade, each, Apple seeks to attract a large group of people who will try the new services. That is even cheaper than some similar services, such as Disney +, which will start at $ 7 a month.
Apple has been a phenomenon, its growth has been epic. But the days when that growth could simply rest on the increasingly expensive iPhone are over. The pricing strategy behind Tuesday's announcements indicates that the company knows it.