Apple Cuts iPhone XR Prices for Third-Party Distributors in China

Discussion in ' News Discussion' started by MacRumors, Jan 10, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Apple has dropped the price of the iPhone XR by about $100 for its channel partners in China, reports Yahoo Finance. The price cut allows third-party vendors to purchase the iPhone XR more cheaply, which allows the device to be sold to customers at a lower price.

    Apple is not offering direct discounts on the device in China, but third-party retailers implemented price cuts on Tuesday after Apple dropped purchasing prices.


    An Apple partner that buys from Apple and sells to distributors and retailers dropped the iPhone XR's price from 5980 yuan ($881) to 5380 yuan ($793) with an additional 150 yuan ($22) coupon available.

    According to Yahoo Finance, the partner in question was told by Apple to drop prices to boost iPhone XR sales.

    Many vendors in China are now offering the iPhone XR at a discount. is offering customers a 400 yuan coupon that drops the price of the iPhone XR to 6099 yuan ($899), while Suning, an electronics store similar to Best Buy, now sells the iPhone XR for 6199 yuan ($914).


    Both of those prices are cheaper than the 6499 yuan ($958) that Apple asks for the iPhone XR from its website and retail stores.

    The discount comes just ahead of the Chinese New Year in February, and could spur additional iPhone XR sales. A report from China's National Business Daily this week suggested Apple has also implemented distributor price drops on other iPhones including the iPhone 8, 8 Plus, X, XS, and XS Max. The biggest price cuts are on the iPhone XR, however.

    Another recent report suggests that Apple has cut production on the iPhone XR, XS, and XS Max by about 10 percent for the next three months.

    The price drops and the production cut follow a recent Q1 2019 guidance downgrade, with Apple expecting revenue of $84 billion during the quarter. That's a year-over-year decline and a drop from the $89 to $93 million revenue guidance Apple provided in November.

    Apple CEO Tim Cook said that a major reason for the earnings downgrade was a weakening Chinese economy, where Apple saw softer iPhone sales than expected.

    Article Link: Apple Cuts iPhone XR Prices for Third-Party Distributors in China
  2. itsmilo macrumors 68030


    Sep 15, 2016
    Now the rest of the world needs to follow suit and just not buy it at those redic prices
  3. joshwenke macrumors regular


    Mar 26, 2011
    Hopefully Apple will follow through with more price cuts for more models in more countries!
  4. Tech198 macrumors G5

    Mar 21, 2011
    Australia, Perth
  5. The Game 161 macrumors P6

    The Game 161

    Dec 15, 2010
    Hopefully means lower prices for 2019 iPhones that’s all that matters going forward.
  6. paul4339 macrumors 65816

    Sep 14, 2009
    >> is offering customers a 400 yuan coupon that drops the price of the iPhone XR to 6099 yuan ($899), while Suning, an electronics store similar to Best Buy, now sells the iPhone XR for 6199 yuan ($914).

    $899 and $914 is the discounted price? wow.
  7. nfl46 macrumors 604


    Oct 5, 2008
    We'll take a $100 price cut in America as well.

    $649 starting price is pretty good.
  8. Baymowe335 macrumors 601

    Oct 6, 2017
  9. The Game 161 macrumors P6

    The Game 161

    Dec 15, 2010
  10. Baymowe335 macrumors 601

    Oct 6, 2017
    Don’t hold your breath. The revenue reduction was over 100% a result of China and many other countries set records, including the US, Canada, Germany, Italy, and Korea.

    Apple will only cut prices where they have to and they still only did it at third parties in China.
  11. JPack macrumors 601


    Mar 27, 2017
    The price includes 17% VAT, which is collected by China for non-domestic phones.

    Pre-VAT, this price puts it less expensive than Canada, which was previously the least expensive place to buy it outside the U.S.
  12. sinsin07 macrumors 68040

    Mar 28, 2009
    Apple cutting prices.
    About freakin' time.
    Must be a disruption in the RDF.
    Please continue.
  13. Kanyay Suspended


    Dec 14, 2018
    Mar-a-Lago, Russia
    lets get that in usa pls thx

    my last mixtape not selling so hot. i need to save dat $
  14. MacRazySwe macrumors 6502a

    Aug 7, 2007
  15. apolloa macrumors G4

    Oct 21, 2008
    Time, because it rules EVERYTHING!
    I like my XR :) I’m not sure if lowering the phones price in a China will help its sales though? I thought Apple was stirring as they use that app there and ANY phone will run it?
  16. rmoliv macrumors 6502a

    Dec 20, 2017
  17. GrumpyMom macrumors G3


    Sep 11, 2014
    Because it’s where they want to expand their market share.

    However, I do find it odd they don’t seem to notice or care more people in the U.K. and Europe are having the same reticence over pricing and moving to Android.
  18. Nagy Dávid macrumors member

    Oct 1, 2014
    Here in Hungary the 64GB XR costs 300000 HUF that is around $1070.
  19. Sasparilla macrumors 65816

    Jul 6, 2012
    That trade war thing going on over there...its resulting in public social pressure to buy Chinese...which is probably affecting sales there. So here this is.
  20. 78Bandit macrumors 6502a


    Jun 13, 2009
    Because Apple's market share in China has dipped under 10% and is still falling. That is pretty significant in a country where the middle-class population is exploding and sales of exclusive phones should be increasing. They will try what they can to protect sales for now. It was also in Japan where they allowed Japan's biggest carrier to discount the retail price of the XR by $100 too.

    In countries like the U.S., with a market share over 40%, there isn't quite so much incentive to boost sales through reduced pricing. Apple is going to have to look long and hard at overall profit numbers before deciding on U.S. pricing. It will take a lot of additional sales to make up for the lost revenue/profit on a $100 cut and I'm not sure the numbers are actually there as Americans have shown a propensity to buy the "best" regardless of price. I look for Apple to adjust prices in Western countries with the 2019 models if they do it at all.
  21. UndefinedxJoker macrumors newbie


    Apr 22, 2014
    Hopefully Apple lowers the price for 2019 iPhones without lowering bar for innovation. (i.e. lower quality materials or components)

    The iPhone XR should have started at $649 and the XS at $849.
  22. 78Bandit macrumors 6502a


    Jun 13, 2009
    I wonder if this includes all taxes and fees. I bought an XR in November and had over $100 in sales taxes and fees on top of the quoted price.
  23. PlayUltimate macrumors regular


    Jul 29, 2016
    Boulder, CO
    Let's not forget that outside of the US, Sales tax (VAT) is included in the listed price. Albeit, that does not account for all of the price discrepancies. For example, Santa Monica, CA, the tax rate is 10.25%. (Boulder, CO is only 8.85%. )
    Thus the 64GB Xr at $750 is actually about $816 out the door. Your taxes will vary.
    In Hungary, the VAT rate is 27%. That translates to a comparable price of $842 pre tax.
  24. racerhomie macrumors 6502


    Aug 14, 2015
    Buy from unauthorized sellers or 2nd hand(used)

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