Apple’s iPhone 11 Has a New Feature
CUPERTINO, Calif. — Apple’s product launches have long been full of surprises, but rarely has a price cut been among them.
On Tuesday, in a sign that Apple is paying attention to consumers who aren’t racing to buy more expensive phones, the company said the iPhone 11, its entry-level phone, would start at $700, compared with $750 for the comparable model last year.
Apple kept the starting prices of its more advanced models, the iPhone 11 Pro and iPhone 11 Pro Max, at $1,000 and $1,100. The company unveiled the new phones at a 90-minute press event at its Silicon Valley campus.
The cost cut on the iPhone 11 was unexpected because Apple had been raising prices each year as a way to keep revenues afloat while iPhone sales fell. But Apple might have hit the ceiling this past year. Sales of the two models that began at $1,000 or more lagged expectations, causing the company to cut revenue estimates and eventually slash prices in China to increase demand.
At the same time, Apple’s entry-level phone last year — the iPhone XR, at $750 — became the company’s best-selling device.
Analysts say that one issue with the rising prices has been that new iPhone features haven’t kept up. As a result, many people are holding onto their phones longer. The falling price suggests Apple sees that trend and is trying to entice more people to upgrade.
Apple said it would also still sell older models for even less. The iPhone 8 now costs $450 and the iPhone XR now costs $600.
Rebranding its priciest iPhones as “Pro” models.
Apple has rebranded its iPhone line to make the iPhone 11 its entry-level option, while adding a “Pro” label to its more expensive models.
The move is a departure from Apple’s previous marketing strategy, which gave the cheapest phone a different label that branded it as the discounted model. (It still started at $750.) The iPhone XR became Apple’s best-selling iPhone, while its more expensive models struggled in some markets. Those lagging sales caused Apple to cut revenue estimates earlier this year.
The iPhone XR also likely outperformed its costlier cousins in part because tech reviewers considered it to be about as good as the flagship iPhone — for 25 percent less. Apple has long been in a bind on pricing and developing its line of iPhones, aiming to make the least expensive devices still worth paying hundreds of dollars for without undercutting the pricier models.
The rebranding suggests Apple is embracing the lowest-priced iPhone as the device most people will use, while marketing the “Pro” devices for the higher end of the market. The company has done the same with its iPads, also labeling its most advanced tablets the iPad Pro.