Apple's least expensive iPhone quietly got a price cut

Read full story

Tim Cook Halo Getty Apple CEO Tim Cook.

Apple had a big coming out party for its new iPhones on Tuesday.

After revealing the new iPhone 8 and iPhone X models, Apple kept to its custom of reducing the prices for its previous generation of iPhones.

But Apple went a step further on Tuesday, and also dropped the price of the iPhone SE, the entry-level iPhone which was already the least expensive iPhone Apple sells.

With Tuesday's price changes, Apple's least expensive new iPhone now costs $349. It previously cost $399.

So on a day that Apple introduced the new, $999 iPhone X that stretches the high-end of what a smartphone costs, it also made its entry-level device more affordable - creating a broader range of prices for its iPhone line up.

A iPhone for every price range

The "Apple Tax" - the premium over similar products from other companies that you would have to pay for Apple's design and software - has been on its way out for awhile.

Apple has been making its entry level products more affordable for a few years, signaling a shift in pricing where it simultaneously pushes in the high end - the $1000 iPhone or the $1300 Apple Watch - while pricing its entry-level products at a level where middle class consumers in developing countries can afford them.

"If you look across our product lines, you can buy an iPad today for under $300. You can buy an iPhone, depending upon which one you select, for in that same kind of ballpark," A pple CEO Tim Cook told Fortune on Monday . "And so these are not for the rich."

Apple's least expensive new iPad is $329, and now its least expensive new iPhone is $349. That gives Apple premium products targeting a completely different part of the market than its entry-level products. This helps Apple keep its margins high, and gives it a way to crack into new markets, because when you're as big as Apple, you need new strategies to keep growing.

Here's what Apple's full iPhone lineup looks like now:

Apple iPhone lineup Apple

Visit Markets Insider for constantly updated market quotes for individual stocks, ETFs, indices, commodities and currencies traded around the world. Go Now!

Add Comment()

Comments ()

X
Sort By:
Be the first one to comment.
We have sent you a verification email. This comment will be published once verification is done.