iPhone 11 Pricing Impresses Analysts; iPhone XR Features More Value Due to Latest Discount


The iPhone 11 pricing caught us by surprise during Apple’s official announcement of the cheaper model, and in a good way. That’s because, for the $699 asking price, it’s cheaper than the iPhone XR and offers more upgrades in return. The same positive sentiment can be expressed by analysts, as they praise Apple’s pricing strategy, while also stating that the company’s move to reduce the iPhone XR and iPhone 8 prices will enable it to garner more units in the future.

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JP Morgan, Cowen, and Rosenblatt Securities all see the iPhone 11 pricing compared to the iPhone XR as a positive sign. Being $50 less than the introductory price of iPhone XR, analysts believe that the latest model can be a catalyst for growth in the entry-level premium segment. The technical upgrades are also mostly in line with the expectation of firms and the additional camera in the iPhone 11 Pro is expected to enhance user experience.

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However, some believe that shaving $100 off the price of older models may cause some consumers to go for them instead of the iPhone 11 and iPhone 11 Pro. Although the Q3 shipments are expected to be slightly better compared to the year-ago quarter because of the same launch time for all new phones, overall estimates for sales remain the same.

Moving on, analysts also believe that the $4.99 subscription fees for the Apple TV+ and Apple Arcade are pretty attractive when compared to rival services. Similarly, the fact that Apple TV+ will be free for a year for new device purchases is also being seen as a healthy sign. That being said, Rosenblatt believes that despite the competitive pricing, it will take some time before the new offerings make a meaningful contribution to Apple’s services division.

Apple Watch Series 5, on the other hand, has been termed a disappointment, owing to the fact that most upgrades are related to just the casing and display. However, the marked down price of Apple Watch Series 3 has been termed as a strategic step to enter the value segment. Still, Apple Watch and AirPods shipments are expected to take a beating because of the 15 percent import tariffs.

The iPhone 11 pricing will most likely be noticed by competitors such as OnePlus and Google, who are expected to launch their own premium handsets in the near future. Just to give our readers a reminder, the iPhone XR became the most popular smartphone in the world for the first six months of this year. With the cheaper iPhone 11 pricing, can Apple register even more sales with this model than it did with its predecessor? Tell us your thoughts down in the comments.

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News Source: AppleInsider