The newly unveiled iPhone 11 is a key step in Apple’s ongoing effort to entice mid-range Android users to jump ship – according to industry experts.
IDC associate vice president of devices Francisco Jeronimo argued that the basic iPhone 11 is the most important new release of the three, despite most of the spotlight falling on the flagship iPhone Pro and iPhone Pro Max.
“Premium devices (priced over $800) have been declining year over year for the last three quarters, while lower price points are gaining share. In this new challenging environment, growing their services and content propositions is vital. However, Apple will have to grow its customer base by attracting mid-range Android users who cannot afford the latest iPhones price tags,” he said.
“Therefore the price for the new iPhone 11, and the new prices for the iPhone XR and iPhone 8, alongside the financing solutions and trade-in programs offered, will help Apple to continue growing its installed base, with one single purpose – to attract them to subscribe to their services.”
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Apple revealed fresh details about its Apple TV Plus and Apple Arcade services during the same event, including that both will cost $4.99 per month. The new products were unveiled earlier this year and sit alongside Apple’s existing Music subscription service.
Jeronimo listed the aggressively low pricing as evidence of Apple’s new effort to use the iPhone 11 to build a service platform capable of competing with popular competitors, like Netflix, Disney Plus and Spotify.
“Apple is clearly making their [users] lives easier, by offering free Apple TV subscriptions for one year (when buying a new Apple device), or by undercutting rivals on their subscription fees massively, such as offering Apple TV Plus at $4.99/mo for a family subscription,” he said.
“These new customers will have to decide whether to keep their subscriptions with Netflix, Amazon Prime, Spotify, etc, or combine them all into one single platform.”
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Kantar global consumer insight director Dominic Sunnebo held a similar opinion, citing the iPhones’ flat year-on-year price as evidence of a new, developing strategy by Apple.
“Holding entry prices flat for the latest iPhone models is a prudent move by Apple, demonstrating understanding that consumers have been pushing back against steep rises over the last few years, by holding onto their device for longer. iPhone XR has been critical to Apple’s sales over the last year and its successor will be just as important,” he said.
“In the UK, it has been the iPhone XR which has been Apple’s best seller for the last 9 months, not its flagship iPhone XS models. With strong competition from Samsung’s rejuvenated A series models, iPhone 11 will be key to Apple’s success, until a 5G model comes online in 2020.”
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The Galaxy A-series is a growing focus for Samsung. This year the firm has released numerous A-series phones, including the Galaxy A80 which features a nifty rotating camera design. The company is rumoured to be working on a 5G A-series phone for release in the very near future.