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

[slide_to_unlock]

Apple increased the price of new iPhones so much that now people think the old price is "cheap". See that is how Apple is playing you all. $649 is also NOT cheap. They have to lower it even more if they want us to buy their product and compete with equally or even more better alternatives like folding or flying phones. $500 starting sounds good to me.

 

[KPandian1]

Hope the rest of the smartphone makers are forced to lower their prices on the top end models too.

These little candy bars are getting too expensive!

 

[MICHAELSD]

Having used the XR the screen is otherwise beautiful but its critical mistake was a sub-1080p display. It would have sold more units and had a lot less negative press if it shared a 3x point resolution with the XS.

 

[sofila]

Apple Reportedly Reassigned Some Marketing Staff to Work on Bolstering Sales of iPhone XS and iPhone XR

Ming-Chi Kuo Says iPhone XR Demand Has Been Lower Than Expected, Slashes Shipment Estimates

Apple Extends iPhone XR and iPhone XS Trade-In Promotion to Europe, Canada, Australia, China, Japan, and Elsewhere

Apple Lowers Revenue Guidance for Q1 2019 Citing 'Fewer iPhone Upgrades' Than Anticipated

Apple CEO Tim Cook Calls Reports That iPhone XR is a Flop 'Bologna'

Apple Tells Suppliers to Cut iPhone XR and XS Production by 10% for Next Three Months

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

But Nikkei reports are always made up

 

[CWallace]

Not sure why this is only china...

Because, as others have noted, China is where the biggest dip in sales is. And the reason for this is the Chinese Market is not nearly as interested in the "S" models as they are the initial release because they buy on design, not on features. And this is because Weichat is the most-used and most-important app on a Chinese user's smartphone and Weichat is cross-platform.

Ben Thompson over at Stratchery outlined this in his most recent article - Chinese sales of the 5 and 6 were very strong, but the 5S and 6S saw significant sales drops because they looked the same so there was no "new" or "prestige" factor. The 7 and 8 looking much like the 6/6S didn't help, either, which is why the X sold very strong (it was the first "all-new design" in years). But the XS looks like an X so interest in it is less. And the XS and XR are just bigger X models (from a pure design point - technical features aside) so they too are probably being impacted by the "not new" issue.

But Nikkei reports are always made up

A broken clock is correct twice a day, but it's still wrong the rest of the time.

 

[Nagy Dávid]

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.

The difference is more than 10%. In my opinion that is far from comparable.

 

[tcphoto1]

I was tempted by the trade in offer for my iphone6 but I didn’t fall for it. How much do you think Apple profits on those trade ins? Perhaps a more realistic pricing scheme would make customers, stockholders and Wallstreet happier.

 

[genovelle]

Not sure why this is only china...

Maybe because it’s the only market that it’s not the best selling phone.

 

[FreshBoy]

After currency conversion, the base iPhone XR costs $1010 here in Ireland. That is just ridiculous. I had every iPhone up until the 7. I refuse to upgrade until they sort their pricing out and if I were to upgrade it would be to the XS which is even more ridiculously priced.

 

[bdore89]

Hears a concept.... iPhone the size of the XR, no notch - instead the top bezel could be slightly larger to accommodate the face ID censors and not interfere with the screen, a separate headphone jack or ditch the lightning port for USB-C and include USB-C headphones, & put 3D touch (optional) & touch ID back. $799. No one would care how thick it is. Would be the best selling iPhone EVER. Too bad Apple doesn't listen to it's customers. This would satisfy customers screaming for an updated SE phone, customers screaming because of how "brave" they were removing the headphone jack, customers that complain about the notch, and customers that complain about the prices.

 

[coolbreeze]

If the XR had 3d touch, I'd happily pay full price for it. Lower prices are always better though. Apple products are so expensive now that only wealthy people can afford them. Crazy.

 

[dazz87]

We'll take a $100 price cut in America as well.

$649 starting price is pretty good.

for a 825p screen in 2019? Nah more like $499

 

[78Bandit]

Having used the XR the screen is otherwise beautiful but its critical mistake was a sub-1080p display. It would have sold more units and had a lot less negative press if it shared a 3x point resolution with the XS.

I just don't think it matters much with most consumers. Apple doesn't even advertise the resolution of the phones (the XS has "super retina" and the XR has "liquid retina"). I do wish it had shipped with the same 401ppi pixel density as the previous Plus models, but in the end those whose purchases would be affected by screen resolution would likely be technophiles and would buy the XS over the XR anyway.

 

[MrAperture]

Hears a concept.... iPhone the size of the XR, no notch - instead the top bezel could be slightly larger to accommodate the face ID censors and not interfere with the screen, a separate headphone jack or ditch the lightning port for USB-C and include USB-C headphones, & put 3D touch (optional) & touch ID back. $799. No one would care how thick it is. Would be the best selling iPhone EVER. Too bad Apple doesn't listen to it's customers. This would satisfy customers screaming for an updated SE phone, customers screaming because of how "brave" they were removing the headphone jack, customers that complain about the notch, and customers that complain about the prices.

That’s called the iPhone 8 Plus.

 

[Infinite Vortex]

$100 off, while a start, doesn't make the Xr anywhere near the price of a Xiaomi/Huawei nor does it make it a Chinese phone. I doubt it'll make a difference.

 

[JPack]

Here's what 6000 RMB buys in China:

Huawei Mate 20 Pro with 128GB of storage. 6.4" OLED. It has the same dot projector, TOF proximity sensor, flood illuminator as iPhone. In-display fingerprint sensor. Three cameras on the back.

Apple iPhone XR with 64GB of storage. 6.1" LCD. No in-display fingerprint sensor. One camera on the back.

 

[Piggie]

I'm sorry.
Was it not the official line that "being to dam expensive" was not the reason for poor sales?
If that were true then dropping the price will have zero effect.

If Apple drops the price anywhere and they sell more, then that proves cheaper phones will sell easier.
With Apple desperately scrabbling to get into services that come from people consuming Apple content.
Apple should make iPhones as cheap as possible, sell masses more of them, then make the money back later.

 

[jayducharme]

I'm not sure what I'm going to do in the future with Apple. I loved the SE, and reluctantly traded it in for an 8. I do like the 8, but even it is too large for me. If Apple had come out with an updated SE, I would have gotten it. Now that all of Apple's phone offerings are bigger than I want, I guess I'll just wait it out until the Watch can be used independent of an iPhone. I just want a small communication device that I can use for a little browsing, gaming and music. I'd be content with the Watch.

 

[spiddyman007]

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. JD.com 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

China is a funny different place

 

[iRutherford]

lets get that in usa pls thx

my last mixtape not selling so hot. i need to save dat $

Mixtapes are given for free, Kanye. Albums aren't.

 

[kiranmk2]

Amazed that the iPhone costs so much in China given that it's manufacturered there meaning no import taxes on the phones from the factory. Our US friends may be amazed at the price of the iPhone these days, but as has been pointed out the prices in the rest of the world are insane.
I wonder if come September iPhone XR price drops to $599 (with no new second tier phone) - would that spark an upgrade cycle (from iPhone 6 and up).

 

[Infinite Vortex]

Amazed that the iPhone costs so much in China given that it's manufacturered there meaning no import taxes on the phones from the factory.

Because 1) it's not India and 2) by having the factory next door all they will "save" is the free shipping.

 

[bdore89]

That’s called the iPhone 8 Plus.

Clearly you missed my entire suggestion... The iPhone 8 plus is NOTHING like the description I gave...

 

[JPack]

Amazed that the iPhone costs so much in China given that it's manufacturered there meaning no import taxes on the phones from the factory.

There are import taxes. The Foxconn plant sits in a bonded zone, similar to an embassy.

Any input materials that go inside the zone for building iPhone aren't taxed. But anything that comes out is taxed as a foreign product.

This makes it attractive for manufacturing to operate and protects domestic industries at the same time.

 

[KPandian1]

China is a funny different place

Amazed that the iPhone costs so much in China given that it's manufacturered there meaning no import taxes on the phones from the factory.

Yes, it is.

Apple products assembled in China are not technically made in China; it is like buying duty-free stuff at the airport, you still pay "tax" at customs. Same applies to other companies, and other countries that have such zoned manufacturing areas.