iPhone 11 shows that Apple has learned important lesson: most people don't want to spend € 1,000 on a phone


iPhone 11 shows that Apple has learned important lesson: most people don't want to spend € 1,000 on a phone

  • Apple markets the cheapest new iPhone, the iPhone 11, as a flagship.
  • Apparently Apple understands that many people are not willing to pay more than 1,000 euros for a phone.
  • The launch follows last year's iPhone XR, a cheaper device that became Apple's best-selling smartphone.
  • People also buy a new smartphone less often, especially now that the prices of top models have risen enormously.

The launch of the iPhone X in 2017 was a milestone for Apple. Not only was it the first iPhone with face recognition and the design was brand new, the price also raised eyebrows.
The iPhone X was the first phone with a price tag of more than a thousand euros. And that became the new normal for a top smartphone.
But this year Apple seems to have recovered. Yes, the new iPhones still cost more than a thousand euros. But those are high-quality devices with the addition 'Pro'. The regular iPhone 11 is available from 809 euros.
With that, Apple clearly opts for a different strategy than in 2018 when the iPhone XS and iPhone XS Max were put on the market for respectively 1,159 euros and 1,259 euros. The tech group also unveiled the iPhone XR for 859 euros, but that was mainly seen as a cheaper alternative to the top model - not as the flagship.
The fact that the iPhone 11 is now shows that Apple has learned an important lesson: most people are not willing to spend more than a thousand euros on a phone.
The popularity of the iPhone XR is a good indication of this. The device accounted for 48 percent of all iPhone sales in April, May and June , according to a report from Consumer Intelligence Research Partners.
Data from marketing company Awin also shows that the iPhone XR sold two and a half times as well as the iPhone XS in the first month after the launch. In fact, even older, cheaper iPhone models such as the iPhone 7 and iPhone 8 would sell better in the first months after the presentation of the expensive iPhone X.

Increasing competition from Google and OnePlus

That the cheaper iPhone 11 should pull the lead also indicates that Apple is feeling competition increase. For example, internet giant Google came in May with the Pixel 3a, which only costs 399 euros and has many the same functions as the Pixel 3.
And there is also OnePlus, the Chinese telephone maker that has entered the top five in the United States in the premium category. You can purchase the OnePlus 7 Pro for € 709. For that you get a superior screen that runs from edge to edge, fast charging and a triple camera. And that for hundreds of euros less than with the Samsung Galaxy S10 or the iPhone 11 Pro.
Speaking of Samsung: the South Korean manufacturer is in the vicinity of the iPhone 11 Pro with the S10 series and Note line in terms of price, but Samsung also sells many devices in the middle segment, such as the Galaxy A series.
By presenting the cheapest iPhone as the most important model, it seems that Apple admits that high prices are not the best strategy.

Upgrade less often

That Apple and Google bet on devices with a friendlier price tag is also because consumers are less likely to buy a new device. US telecom provider Verizon said in April that the customer upgrade rate had dropped to a record low. Financial director Matt Ellis knows that with the “minute adjustment” to new top models, according to news agency Bloomberg .
Another cause is the sky-high prices of new smartphones, says market researcher Kantar's Dominic Sunnebo. The price of flagships from major manufacturers has risen by 50 percent in two years, he wrote in a blog .
At the same time, the global market for smartphones has been shrinking for seven consecutive quarters, according to figures from market research agency IHS Markit . That touches Apple. For example, iPhone revenues fell by no less than 12 percent in April, May and June compared to a year earlier.
Apple was also overtaken by the Chinese company Oppo and is now the fourth smartphone maker in the world, according to IHS. The market researcher identified the towering iPhone prices as one of the causes.
With 809 euros, the iPhone 11 is not exactly cheap, but it is 50 euros lower than the suggested retail price of the iPhone XR last year. Apple understands that it can not only bring expensive devices on the market if it wants to remain competitive.

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