Apple executives spent nearly two hours on Tuesday discussing new innovations across the iPhone, iPad, and Apple Watch lines. But it was the company’s decision about the price of its new iPhone 11 that may have been most notable—especially when it comes to pending trade tariffs with China.
Apple said the iPhone 11 would start at $699 when it goes on sale September 20—or $50 cheaper than the $749 iPhone XR that it’s replacing.
The price reduction was a surprising move. Apple usually charges the same for successor phones as for their predecessors. And when introducing a big upgrade, the company has often increased prices. In 2017, for instance, Apple unveiled the iPhone X with a starting price of $999—at the time, the company’s most expensive phone ever.
This time, the decision to go with lower prices comes as Apple grapples with new tariffs, starting on December 15, on many of its devices. The Trump administration recently said it would increase tariffs from 10% to 15% on all smartphones produced in China, where Apple’s phones are produced.
Manufacturing costs for iPhones will therefore be higher than previously. And with a lower price on top of the tariffs, Apple’s profits from …read more
Source:: Fortune.com – Tech