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We are back again with KaMIST! Every week on Thursday we’re going to give you an insight about marketing.
[ Apple’s iPhone 11 Features: Lower Price ]
Two years ago, Apple pushed the price of its mobile phones to a thousand bucks with the iPhone X. Now, the newest, most prestigious new smartphone from Apple, the iPhone 11 comes at a lower price. Officially launched on September 2019, 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 cost cut on the iPhone 11 was surprising because Apple had been raising prices each year as a way to keep revenues afloat while iPhone sales fell. There are reasons to be concerned that Apple’s high-priced phones might be stalling. Apple’s market share has fallen nearly 2 percentage points in the past year, according to industry watcher IDC. That might seem worrying, particularly because the entire market is shrinking as well.
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. Therefore, analysts say that one issue with Apple’s iPhone rising prices has been that new iPhone features haven’t kept up. As a result, many people are keeping up onto their phones longer. The falling price suggests Apple sees that trend and is trying to attract more people to upgrade.
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