Lower iPhone 11 price shows Apple got the message [Opinion]


iPhone 11 colors
The iPhone 11 will bring a serious boost in sales because it’s what people asked for.
Photo: Apple

You spoke and Apple listened. There was widespread criticism that last year’s iPhones were too expensive, and so the just-announced iPhone 11 is a better device for less money.

Even as the target of negative comments, the iPhone XR was the world’s best-selling smartphone for many months. The cheaper replacement is going see even stronger sales because the iPhone 11 is certainly a better value.

iPhone XR was not really a budget offering

Apple doesn’t have a knack for making low-end phones. It sort of tried with the iPhone XR and this handset ended up faster than the Galaxy Note 9, Samsung’s new flagship smartphone at the time.

But the XR’s powerful specs were reflected in its $749 pricetag. Potential customers complained that Apple was pricing itself out of the market.

Not everyone agreed, though. People were buying the iPhone XR in big numbers, to the point that this handset easily outsold every other smartphone during the first half of 2019, according to data from a market-research firm.

Despite that win, Apple’s overall phone revenue was down. The company was very aware that there were plenty of people who still weren’t buying an XR because of what it cost.

The iPhone 11 is the response.

iPhone 11 costs 8% less than the XR

Apple took the criticism of its prices to heart, and its new mainstream model costs $50 less. That’s amazing, as Apple isn’t known for lowering its pricetags. It happens, but not often.

And the designers didn’t cut any corners to reduce the drain on our wallets. The iPhone 11 has the same processor as the iPhone 11 Pro that sells for $300 more. The device has an identical screen as last year’s model, Apple added a wide-angle lens, and there’s a much better front camera: a 12MP up from 7MP.

In short, this is the best value in a phone Apple has offered for years. It doesn’t have all the high-end features of the iPhone 11 Pro models, but it has quite a few, and it costs almost 30% less.

The market loves it

A huge surge in Apple’s stock price is likely built on optimism that the new iPhone 11 is what grumbling smartphone buyers have been hoping for. Yesterday, before this handset was announced, shares were selling at about $215. They closed this afternoon at over $223, pushing this company’s market capitalization back over the $1 trillion mark.

Investors could have read a research note JP Morgan wrote after Apple’s press event to unveil its 2019 handset lineup: “We came out largely positive from the event led by Lowered Pricing of iPhone 11 relative to XR, which could act as positive driver for volumes in entry level premium smartphone segment, while maintaining robust pricing for the other two higher end models.”

In other words, there’s some real upbeat feelings that Apple is going to have a winner in the iPhone 11. And it’s all the result of everyone who criticized the cost its predecessor. The company should probably thank you.


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