Over the past few weeks, Apple has lowered the prices of their iPhone X and XR. The reason this all happened was because U.S. stock projections were looking slightly lower at the beginning of January. The question remains: why?
A number of electronic stores in China have also reduced iPhone prices this month, as Apple blamed its shrinking profits on the low level of smartphone sales in this country. In its first three months on the market, the iPhone XR has been under the shadow of the iPhone X and XS. Sales of these new devices are down significantly. According to a report made by the Wall Street Journal, Apple is still producing iPhone X for certain markets. It is not yet known how starkly the price of the iPhone XR will decrease until next week.
“Lower than anticipated iPhone revenue, primarily in Greater China, accounts for all of our revenue shortfall to our guidance and for much more than our entire year-over-year revenue decline,” Apple CEO Tim Cook said in a letter to investors.
Price cuts from Apple are rare but not unprecedented. The company has used this tactic from time to time to target specific markets where devices repeatedly underperform. We would not expect to see price cuts reflected worldwide, but rather in certain specific geographic regions, writes 9to5Mac. While China’s Apple sales may be on the decline, Japan has turned out to be home to one of the company’s hotter markets in recent years. In nations like India, however, Apple still struggles to make a name for itself.
Up until now, multiple reports have suggested lower iPhone XR demand than expected. However, because these were frequently based on supply chain reports, there was no way of knowing how accurate these predictions were. Apple’s lowering of the iPhone XR prices in one market certainly doesn’t make it a massive failure.
Due to some sluggishness in iPhone XS and iPhone XS Max production, bringing back the iPhone X allows Apple to use the excess OLED screen components in a product that was shown to be very popular during its lifetime, at a discounted price that a wider range of people can afford. In addition, Apple has removed iPhone 7, 8, and X from their website.
It’s not clear if the iPhone X will go back on sale all around the globe sometime soon or not. Apple did something similar in the past by re-launching the iPhone 6 years after it was officially discontinued.