Let's Talk About That $699 iPhone 11 By Dave2D

Okay, so this video is about the iPhone 11, the iPhone 11 Pro the big boy, expensive version, which it feels kind of like a placeholder for next year's models. That is a very camera focused product, and I'll. Do in two separate video of that in another day, I want to talk about the six hundred and ninety-nine dollar iPhone 11. I think this is the most interesting product that Apple has launched in the past two three years. So it's not the specs. The specs are super boring it's the same phone as the previous generation.

I would consider to be a refresh model with just a second camera, but the price tag of $6.99 is very interesting because at that price point they are literally leaving billions of dollars on the table. So here's the thing we recently saw the sales figures of the top 10 smartphone models sold around the world in the first half of 2019, so this chart has just from top to bottom the best-selling phone to the 10th best-selling phone and at the top of that list, is the iPhone 10, our that is a phone that's sold for seven hundred and forty-nine dollars u. s. So basically some fifty, but if that phone had sold for one dollar less like just one dollar cheaper for the customer to buy Apple would have made twenty-six point: nine million dollars less money this year, the iPhone 11 is selling for $6.99. That's fifty dollars cheaper than the previous year, and if you take 50 dollars and multiply it by that sales figure, that's over 1.3 billion US dollars. That Apple is willing to leave on the table now.

Obviously, that number is going to be affected by carrier subsidies, but point being it's a lot of money. It's and that's only six months of sales figures like if you go for the course of the year. It's like who knows how much that is point being Apple, willingly, knowingly lowered the price on their phone and just left that money on the table and even though Apple is a super rich company, a billion dollars is still a lot of money for them, especially in a market where a percentage gained here percentage loss here is a big deal like people pay attention to that stuff, and it affects Apple's stock price, leaving a billion dollars out. There is a big business decision and what I think we're seeing here are two factors: come into play number I think that Apple is finally feeling market pressure. This is a company like if you think, about what Apple has been doing over the years when other companies were releasing like $300 flagship killers.

Apples like boom. Here's, my thousand dollar iPhone 10, that's Apple. They rarely fold to market pressure, but maybe it was all the cheaper Samsung phones out there. Maybe it's like the cheap phones from Xiaomi or maybe I, don't know OnePlus or pixels three devices finally got under their skin. It doesn't matter what happened, but I think that market pressure finally got into Apple's head, and they lowered the price because they felt like they had to, but the second more important reason why I think they lowered the price on this phone is because apples in a different phase right now they are no longer as dependent on their iPhone revenue to stay profitable.

They don't need to make a lot of money off of their phones because their services' revenue is just growing so rapidly. It's actually quite surprising to analysts. We've got Apple Music Apple games, Apple news, Apple TV, like iCloud storage. There are a ton of services that Apple is selling to people and what is the best way to snowball the revenue from those services cheaper, iPhones, so sure you lose a billion dollars in iPhone revenue, but as you capture a bigger audience with this cheaper phone, you just make that money back, maybe double triple that with services. And now, when a consumer is looking at that mid-range market, I guess mid-range is relative.

But if you look at that $700 price point, you now have a very compelling product from Apple with the iPhone 11. Now, if that price tag is still uncomfortable, if that seven hundred dollar price tag feels a little steep, the iPhone 10 are from the previous year is $600 I. Think that's actually a pretty good value for what it is. I was actually one of the very few people last year that didn't rip on the 10r, but I actually think it's a pretty solid experience for the money, and it's just even better of a value this year. But that's basically what these videos about I'm I'm very excited to see how Apple takes this like? What's their next step, they have these cheaper phones, obviously their whole product line isn't super cheap, but the fact that they lowered this one by this much it means something.

It's significant. Okay, hope you guys enjoyed this video thumbs. If you liked it subs have you loved it see you guys next time.

Source : Dave2D