Apple has unveiled its new lineup of smartphones for the 2020 holiday season, and the Apple Maven covered the event live on October 13. In my “key takeaways” article, I mentioned that pricing had been the best piece of news to investors coming out of the iPhone 12 launch.
Today, I explore this topic in a bit more detail.
Competing in 5G at a low price point
I believe that Apple’s best marketing move this October was the launch of the iPhone Mini. For starters, this is the first time that one of Apple’s higher end smartphones is equipped with a smaller screen size (5.5 inches or less) since the iPhone 8 launched, in 2017.
But more importantly, the more compact model that comes in a smaller box (due to the absence of corded earbuds and power adapter) could be priced at the same $699, to start, as last year’s iPhone 11. The benefit here is twofold.
First, the iPhone Mini will give consumers access to 5G technology at a compelling price point in a year of pandemic, when many seem (and others should be) concerned about too much discretionary spending. Second, the iPhone Mini could open doors in less developed, more price-sensitive markets. Pricing the new iPhone lineup too richly could have alienated a whole chunk of the market in a period of economic uncertainty.
Now, Apple has devices available at every price point from $399 to $799, in $100 increments:
- iPhone SE starts at $399
- iPhone XR starts at $499
- iPhone 11 starts at $599
- iPhone Mini starts at $699
- iPhone 12 starts at $799
But still lots of room at the high end
Still, Apple has a few compelling alternatives at the higher prices points. Sure, the iPhone 12 Pro Max starts at the same $1,099 as last year’s iPhone 11 Pro Max. But the fully-loaded version, with 512 Gb of storage, still sells for as much as $1,399 – one of the most expensive mass-production smartphones in the world.
Now, Apple’s iPhone lineup is “loaded” at virtually every price point, from $399 to $1,399. This should help consumers at different price tolerance levels and different global markets, from developing to developed ones, find their ideal smartphone model for the 2020 holiday season.
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(Disclaimers: the author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Apple Maven)