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More Consumers Will Take A Bite of Apple with Cheaper, Bigger Phones

After lackluster sales for the iPhone X, the company announced plans to release three cheaper, bigger phone models.
Gabriella Hoffman
by Gabriella Hoffman Read Profile arrow_right_alt

Consumers will rejoice over news of the unveiling of three iPhone models slated to debut this fall—if it goes to plan. These three models, if released, will be markedly cheaper while retaining many high tech features from newer models—including facial recognition and edge-to-edge screens. Here’s more on what consumers can expect from Apple this fall:

With the new lineup, Apple wants to appeal to the growing number of consumers who crave the multitasking attributes of so-called phablets while also catering to those looking for a more affordable version of the iPhone X, according to people familiar with the products.

Apple, which is already running production tests with suppliers, is expected to announce the new phones this fall. The plans could still change, say the people, who requested anonymity to discuss internal planning.

This breakthrough hopes to quell consumer uncertainty after the iPhone X was revealed to be a major PR flop last winter.

Moreover, Apple seems more optimistic about consumer attitudes about their products given a better economic forecast—largely attributed to the Trump tax cuts going into effect. Last month, Apple announced its plans to invest $350 billion over 5 years into 20,000 new jobs and building a new campus (location to be announced later this year). Here’s more from Apple on this:

Combining new investments and Apple’s current pace of spending with domestic suppliers and manufacturers — an estimated $55 billion for 2018 — Apple’s direct contribution to the US economy will be more than $350 billion over the next five years, not including Apple’s ongoing tax payments, the tax revenues generated from employees’ wages and the sale of Apple products.

Apple, already the largest US taxpayer, anticipates repatriation tax payments of approximately $38 billion as required by recent changes to the tax law. A payment of that size would likely be the largest of its kind ever made.

Like other Apple users, this is an announcement we can get excited for. Why are SmartPhones exceeding $1,000? When demand is high, lower the costs to make it more affordable. Consumers looking to upgrade their phones will be happy to invest in these newer models without bursting their budget. Smart move, Apple!


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