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September 16, 2019

Launch of iPhone and TV+ must overcome pricing, content and prestige hurdles

By MarketLine

Apple unveiled its iPhone 11, Pro and Pro Max at a keynote event recently. The entry-level iPhone 11 will start at $699. Prices will rise to $1,099 for the 11 Pro Max, which has a 6.5-inch display.

In a bid to keep apace with Android competition, the new iPhone 11 includes a significant upgrade to its camera capabilities. The rear dual-camera system allows for stereoscopic effects and greater depth of field, while the triple rear camera on the 11 Pro and 11 Pro Max comes with ultra-wide and telephoto lenses. 

It appears the California-based US tech giant is targeting a different audience to other leading smartphone manufacturers, with the iPhone classified as a luxury item, clearly targeting a consumer base used to high spending.

Apple products appeal to social media influencers or consumers looking to demonstrate their social status through their smartphones, and to achieve this brandishing the most up-to-date device, typically an iPhone, is de rigueur.

However, for the latest products to be successful and boost company growth, new consumers must be tempted away from rivals. But with large numbers of consumers choosing a cheaper alternative to the latest iPhone, potential sales are simply lost. 

In the battle to win over customers, Apple is offering a year’s free subscription of its TV+ services, with any purchase of any new iPhone, iPad, Apple TV, iPod touch or Mac. Apple TV+ will be available on 1 November in 100 countries around the world, including the US and the UK. Standard subscription will cost $4.99 a month.

However, questions remain of how many series, documentaries or movies Apple TV+ customers will enjoy. Currently, only eight original shows have been confirmed for Apple TV, with 18 being rumoured. Turnover of this amount would not seriously rival Netflix, which provides more than 100 shows daily, even if TV+ is cheaper than Netflix.

So, it is not quite clear how Apple’s TV+ will be able to compete with major players such as Netflix, even at a lower price. Despite this, the service is still in its infancy and has great future potential for growth.  

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