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Apple cuts prices, ramps up services as iPhone 11 launches

| | Cupertino
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Apple cuts prices, ramps up services as iPhone 11 launches

Thursday, 12 September 2019 | AFP | Cupertino

Apple unveiled its iPhone 11 models Tuesday with a price cut for the most basic models while also laying out plans for streaming and gaming services as it bids to weather the slump in the global smartphone market.

Price appeared to be a key consideration as the tech giant reduced the entry level price for the iPhone 11 to $699 and undercut rivals for its gaming and streaming television subscriptions. Apple unveiled three versions of the iPhone 11 including “Pro” models with triple camera and other advanced features starting at $999 and $1,099, unchanged from last year’s prices, touting upgraded features including ultra-wide camera lenses.

The surprise from Apple was the reduction in the starting price at $699, down from $749 for the iPhone XR a year ago even as many premium devices are being priced around $1,000.

The new iPhones are “jam-packed with new capabilities and an incredible new design,” Apple chief executive Tim Cook told a launch event in Cupertino, California as the company set plans to sell the new handsets on September 20.

Apple’s announcements appeared to be aimed at emphasizing value as the company looks to shift its business model to reduce its dependence on smartphones and tie in digital content and other services to its devices.

“I think the iPhone 11 is compelling and may convince people to upgrade earlier than they might have otherwise given the lower price and longer battery life, not just an improved camera.” With the new devices and services, “I think there are more reasons to stay with Apple than to defect from Apple,” said Patrick Moorhead, analyst at Moor Insights & Strategy.

Apple TV+ service will launch November 1 in more than 100 countries at $4.99 per month and will include a “powerful and inspiring lineup of original shows, movies and documentaries.” While Apple’s streaming service will have limited content at first, its price is below the $6.99 for the forthcoming Disney+ service and the more expensive plans from Netflix.

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