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Tim Cook, President and CEO of Apple Inc., talks about the new iPhone 11.
David Paul Morris | Bloomberg | Getty Images
Two Wall Street analysts told CNBC on Wednesday that the Apple iPhone bundle was a reversal from its past mistakes.
Apple announced Tuesday the release of new iPhones with improved technology, but the focus is on the attractive price. The tech giant is selling the iPhone 11 at $ 699, a $ 50 drop from the equivalent model of last year. The fall in prices is an unusual move for the company, which has always maintained the price of premiums.
Analysts believe, however, that the new pricing strategy of Apple could boost iPhone sales, which peaked in 2015. Apple has stopped publishing unit sales this year.
"Apple has demonstrated its ability to be tactical and understand the dynamics of the market," said Wamsi Mohan, Senior Equity Research Analyst at Bank of America Merrill Lynch, in "Squawk Alley."
An analyst at Goldman Sachs echoed sentiments similar to those of CNBC earlier in the day.
"Prices on the iPhone, the basic iPhone, are interesting," said Rod Hall, senior equity analyst. "I would expect the unit's share to become aggressive."
Hall added that there was not much room left to raise prices on the iPhone, even though it's becoming "more attractive" with the upgrades.
It's a move that has taken several analysts by surprise.
"We came out largely positive from the event … led by the reduced price of the iPhone 11 compared to XR, which could play a positive role for volumes in the segment of smartphones. entry-level high-end, "wrote JP Morgan in a research note Wednesday.
However, Hall said that he was not convinced that lower prices would boost sales.
"You will probably not receive much more unitary demands because of lower prices," he said.
Apple's shares rose about 2.87% on Wednesday after climbing more than 1% on Tuesday.
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