Following its pricing approach over the past years, Apple has cut down the price of its past iPhone models this week to allow the recently launched iPhone 6 and iPhone 6 Plus to have the highest prices, as reported by Business Insider.

Last Tuesday, the tech giant made an official announcement that they will continue selling the iPhone 5S starting at $99 up to $199, depending on storage size, when users enter a two-year agreement. The iPhone 5C will be made available in its 8GB version with a two-year contract free of charge, such as that of Sprint, while the 16GB version will cost 97 cents for Walmart. While customers in the U.S. are already enjoying the news, the phones' prices and availability are still to be announced in Australia and the U.K.

Apple's approach in slashing its price on older phone models allows the company to make the most of the number of customers and target various price points. Consequently, the company gains increased ability to become a strong competitor against other phone manufacturers that offer Android devices.

Prior to the release of the latest iPhone models, having a two-year deal for the iPhone 5S came with a $199 tag for 16GB, $299 for 32GB and $399 for 64GB. Customers who did not take on a contract paid a retail price of $649 for 16GB, $749 for 32GB and $849 for 64GB.

Before its official release in 2013, the iPhone 5C was expected to be made available at a price lower than what it actually costs. In contrast to Apple's goal of attracting a low-end market, the 5C did improve its position among the high-end customers. However, the device initially did not have a strong performance in terms of sales, as pointed out by Apple CEO Tim Cook during the company's earnings report in January.

Nonetheless, Cook expressed his assurance that "amazing" new products along with "exciting new product categories" that will go beyond smartphones, tablets and computers can be expected before 2014 ends, referring to such lineup as the "best product pipeline in 25 years."