The entry-level iPhone 11 will start at $700, versus $750 of previous models, showcasing that Apple might have hit the ceiling this year as as iPhone sales fell
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 bestselling 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.
©2019 New York Times News Service