“The new iPhones are jam-packed with new capabilities and an incredible new design.” – Tim Cook
Apple
unveiled its iPhone 11 models last night (Thai time) with a price cut
for the most basic models while also laying out plans for streaming and
gaming services as it bids to weather the slump in the global smartphone
market.
No
major surprises. But in a surprising tone for the tech leader, Apple
focussed on ‘price’ as a key strategy in today’s announcements.
Price
appeared to be a key consideration as the tech giant reduced the entry
level price for the iPhone 11 to $699 and undercut rivals for its gaming
and streaming television subscriptions.
Apple unveiled three
versions of the iPhone 11 including “Pro” models with triple camera and
other advanced features starting at $999 and $1,099, unchanged from last
year’s prices, touting upgraded features including ultra-wide camera
lenses.
The surprise from Apple was the reduction in the starting price at
$699, down from $749 for the iPhone XR a year ago even as many premium
devices are being priced around $1,000.
The new iPhones are
“jam-packed with new capabilities and an incredible new design,” Apple
chief executive Tim Cook told a launch event in Cupertino, California as
the company set plans to sell the new handsets on September 20.
.
.
Apple’s announcements appeared to be aimed at emphasising value as
the company looks to shift its business model to reduce its dependence
on smartphones and tie in digital content and other services to its
devices.
“We got a stream of nonstop product launches, with
content being used as a sweetener,” said Avi Greengart, analyst and
consultant with Techsponential.
“I think the iPhone 11 is
compelling and may convince people to upgrade earlier than they might
have otherwise given the lower price and longer battery life, not just
an improved camera.”
With the new devices and services, “I think
there are more reasons to stay with Apple than to defect from Apple,”
said Patrick Moorhead, analyst at Moor Insights & Strategy.
Apple
TV+ service will launch November 1 in more than 100 countries at
US$4.99 per month and will include a “powerful and inspiring lineup of
original shows, movies and documentaries.”
While Apple’s streaming
service will have limited content at first, its price is below the
$6.99 for the forthcoming Disney+ service and the more expensive plans
from Netflix.
“Clearly Cupertino is looking for market share coming out of the gates
with these surprising price points that we loudly applaud,” said Daniel
Ives of Wedbush Securities.
.
.
Apple is featuring scripted dramas, comedies and movies as well as
children’s programs in the service, which will compete against streaming
giants like Netflix and Amazon.
“With Apple TV+, we are
presenting all-original stories from the best, brightest and most
creative minds, and we know viewers will find their new favorite show or
movie on our service,” said Zack Van Amburg, Apple’s head of video.
Apple said customers who purchase an iPhone, iPad, Apple TV, iPod touch or Mac will get the first year of the service for free.
The
company’s online gaming subscription service, Apple Arcade, will launch
next week, offering exclusive titles for mobile and desktop users.
The
new service, which will also cost $4.99 per month, will include more
than 100 game titles made for Apple devices and will be available in
some 150 countries.
“You can’t find these games on any other
mobile platform or subscription service. No game service ever launched
as many games, and we can’t wait for you to play all of that,” product
manager Ann Thai told the Apple media event.
Apple also unveiled updates to its iPad tablet and Apple Watch
smartwatch, also emphasising stable or lower prices with cuts to older
versions.
“We think the lower iPhone 11 price point and trade-in
program will help promote upgrades, specifically in China, while the
Apple Arcade and TV+ offerings will help accelerate services growth,”
CFRA Research analyst Angelo Zino said in a note about Apple.
Apple
shares ended the formal trading day up slightly to $216.70, while
streaming television rivals Netflix and Disney both finished down about
two percent.
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Source - The Thaiger
