On Tuesday afternoon Apple (NASDAQ: AAPL) unveiled its new line of products at the Apple Special Event, its annual autumn product event at the Steve Jobs Theater in Cupertino, California. The tech giant also divulged some details about upcoming products and services.
The main event for Apple investors and customers was the introduction of the new flagship smartphones. Three new phones debuted: the iPhone 11 Pro, iPhone 11 Pro Max, and iPhone 11 as the successors to the iPhone XR and XS. The iPhone 11 Pro and 11 Pro Max boast 5.8-inch and 6.5-inch OLED displays and are offered in green, space gray, silver, and gold colors with a new matte finish on the back panel. The phones also feature an all new triple-lens camera system with a telephoto camera, wide angle camera that allows 40% more light, and ultra-wide camera with a 120 degree field of view. The cameras can also shoot 4K resolution video at 30 frames per second. Finally, the new phones all boast new A13 processing chips and longer battery life. The new phones will be sold starting at $399, $599, and $699, depending on memory capacity, trade-ins, and special carrier financing or offers.
Apple also unveiled its new services Apple TV+ and Apple Arcade. The streaming service is slated to debut on November 1 and will only cost $4.99 for a family account. Apple TV+ will be available in 100 countries and feature new shows each month. It will offer original programming, and customers can enjoy a free year subscription after buying a new iPhone, iPad, Mac, or Apple TV. Apple Arcade is a gaming subscription service offering 100 new games with more added monthly, also $4.99 for a family account. The company also introduced the Apple Watch Series 5, which features an always-on display and battery life of 18 hours, starting at $399. Apple also unveiled the new 10.2-inch iPad to replace the 9.7-inch model. The new tablet boasts a A10 Fusion chip, Retina display, and 8 megapixel camera, starting at $329.
Finally, Apple announced it will reopen its flagship Fifth Avenue store in New York on September 20, the date of its new iPhone launch. Overall, Apple's event seems to be a boon for long-term investors and diehard customers alike. Apple needs new customers to join its branded ecosystem, so its move to cut the price of the cheapest iPhone model is a smart move. By offering an option geared toward discount shoppers, Apple is hoping to make up the revenue through services subscriptions. Compared to Netflix (NASDAQ: NFLX) and Google (NASDAQ: GOOGL) Stadia, Apple's prices for Apple TV+ and Apple Arcade make them more valuable, meaning the services can potentially attract more subscribers. Apple is in the middle of its transition from a hardware to a services firm, and the price competition is a good way for the behemoth to keep growing.
The author holds a small long position in AAPL.