Apple reveals cheaper iPhone, streaming TV
CUPERTINO, California — Apple unveiled new iPhones that are largely unchanged from previous models and accompanied by an unexpected price cut for the cheapest model, underscoring the company’s efforts to counteract a sales slump of its flagship product.
The company’s new models are so similar to last year’s lineup they may be upstaged by Apple TV Plus, the company’s upcoming video service, which is rolling out Nov. 1 at $5 per month.
Apple, in fact, is already using the video service to promote iPhones, offering a free year of Apple TV Plus with new device purchases.
IPhone shipments are down 25% so far this year, according to the research firm IDC, putting more pressure on Apple to generate revenue from services such as music and video streaming, games and its App Store. Revenue from services rose 14% to nearly $23 billion during the first half of this year.
It is cutting the price of the iPhone 11 to $700 from $750, the price of last year’s XR. The lower prices reverses a trend in which premium phones get more expensive as people upgrade them less often.
Like Netflix and similar services from Amazon and Hulu, Apple has been lavishing billions of dollars for original programs featuring stars such as Oprah Winfrey, Jennifer Aniston and Reese Witherspoon. The service will launch with nine original shows and films, with more expected each month. It will only carry Apple’s original programming, and will be available in 100 countries at launch.
Apple also announced a new video game subscription service will cost $5 a month when it rolls out Sept. 19. Called Apple Arcade, the service will allow subscribers to play more than 100 games exclusive to the service.