Apple Reportedly Plans to Cut Price of iPhone XR in Japan Due to Poor Sales and Restart iPhone X Production

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Nov 22, 2018.

  1. MacRumors macrumors bot

    MacRumors

    Joined:
    Apr 12, 2001
    #1
    [​IMG]


    Apple plans to discount the price of iPhone XR models in Japan by offering subsidies to Japanese carriers, according to a new report out this morning.

    The Wall Street Journal said the price decreases on the $750 iPhone models could come as early as next week, citing sources familiar with Apple's sales strategy in the region.

    [​IMG]
    The decision comes in the wake of a WSJ report earlier this week that claimed Apple has slashed production orders for its latest iPhone XS, iPhone XS Max, and iPhone XR models due to lower-than-expected demand.

    Part of the problem for Apple is that the iPhone 8 is apparently still hugely popular in Japan because of its affordability, given that it's cheaper than the XR and was still available when Apple launched the XS and XS Max.

    According to WSJ's sources, Apple suppliers have also resumed making the iPhone X, the 2017 model that Apple no longer sells at its own stores. If Apple plans to sell the older model in Japan, it wouldn't be the first time the company has produced previously discontinued models for regional markets where it sees sufficient demand for cheaper devices. The strategy also allows Apple to benefit from lower-cost components and depreciated production line machinery.

    However, supply chain sources who spoke to WSJ claim the resumption of iPhone X production is partly due to Apple's need to use OLED panels ordered from Samsung - panels that were previously earmarked for use in the iPhone XS and XS Max devices that have since been hit by swingeing production cuts.

    Article Link: Apple Reportedly Plans to Cut Price of iPhone XR in Japan Due to Poor Sales and Restart iPhone X Production
     
  2. ondert macrumors regular

    ondert

    Joined:
    Aug 11, 2017
    Location:
    Italy
    #2
    looks like shareholders are angry maybe with Tim Cook's greed, huh?
     
  3. Agit21 macrumors regular

    Joined:
    Mar 9, 2016
    #3
    Better cut those bezels in half Apple. They look hideous!
     
  4. TComm macrumors member

    Joined:
    Dec 28, 2017
    Location:
    New York, NY
  5. ChrisMoBro macrumors 6502

    ChrisMoBro

    Joined:
    Oct 31, 2016
    #5
    It’s simple economics: wages are stagnant, inflation is rising so fewer people can justify spending a months mortgage payment on a device or £60-£80 a month for a contract. If the price of iPhones keep going up, sales will go down. Simple.
     
  6. levitynyc, Nov 22, 2018
    Last edited: Nov 22, 2018

    levitynyc macrumors 65816

    Joined:
    Aug 19, 2006
    #6
    Things they need to cut the price of everywhere:

    iPhone XS
    iPhone XS Max
    iPhone XR
    iMac
    MacBook Pro
    MacBook
    MacBook Air
    Mac Mini
    iPad Pro
    iPad Air
    iPad
    AirPods
    Apple Watch
    Memory Upgrades
    Apple Pencil

    EDIT: Forgot about the Apple HomePod.

    What did I miss?
     
  7. Bokito macrumors regular

    Joined:
    May 29, 2007
    Location:
    Netherlands
    #7
    It more and more looks like Apple overplayed it's hand with this year's high-priced products.

    The iPhone XS and XR are not worth the upgrade for many over an iPhone 7 or 8 as the only things that are improved are the camera and the screen (for an almost 50% premium!). Even on an iPhone 7 you won't max out the processor or the GPU and I still think Touch ID is worth way more than face ID.

    Here in the Netherlands you'll be registered for having an outstanding loan if you buy a subsidized phone, making iPhones way less attractive for people who want to buy a house as the registration will cut thousands of euros from your maximum mortgage and will increase your rent. Just putting down € 1500 at once for a phone is not something a person does every day.
     
  8. rmoliv macrumors 6502a

    Joined:
    Dec 20, 2017
    #8
    You can't sell a phone with the XR specs at such a high price point and expect huge sales especially when the competition offers the same or better for less money. iOS is not enough to keep people loyal to Apple.
     
  9. novakk86 macrumors member

    novakk86

    Joined:
    Apr 9, 2018
    #9
    Dongels?
     
  10. XtremeArtists macrumors member

    XtremeArtists

    Joined:
    Nov 2, 2018
    #10
    The camera and screen are two of the most important things to most of my friends who are not tech savy.
     
  11. nfl46 macrumors 604

    Joined:
    Oct 5, 2008
    #11
    Take $100 off of the XR, XS and Max while they’re at it.

    $649 starting price for the XR is reasonable.
     
  12. run1976 macrumors member

    Joined:
    Feb 4, 2010
    Location:
    Germany
    #12
    The Apple Watch is not too expensive imho. Garmin sells sport watches for 800$. So if Apple can increase functionality via software it is almost a steal.
     
  13. Imory macrumors 6502a

    Joined:
    Feb 2, 2013
    Location:
    Wonderland
    #13
    I have a hard time believing this to be true, but I'd welcome it.
     
  14. Mydel macrumors 6502a

    Mydel

    Joined:
    Apr 8, 2006
    Location:
    Sometimes here mostly there
    #14
    Time to cut 15% in europe to compensate for 25% VAT. Without that its not reasonable to splash over 1000USD on XR. Actually its crazy when you compared to top of the line Android phones.
     
  15. maflynn Moderator

    maflynn

    Staff Member

    Joined:
    May 3, 2009
    Location:
    Boston
    #15
    I think apple is reaping what they have sown. I think they will be facing this issue worldwide to some degree. The prices are too high to justify the phones, financing (or leasing) masked the high cost to some degree but the Xs and Xs Max are so expensive, its a lot even if you finance them over two years.
     
  16. lambertjohn macrumors 6502a

    Joined:
    Jun 17, 2012
    #16
    Tim Cook's salary.
     
  17. dotnet macrumors 65816

    dotnet

    Joined:
    Apr 10, 2015
    Location:
    Sydney, Australia
    #17
    Yet it seems that this year's lower priced product is the one in the firing line.

    I don't agree about Face ID vs Touch ID, and I think the upgrades over my 7+ are compelling, but they were not compelling enough for me last year to get the X or this year to get a XS or XR. The expenditure is in no relation to the gain for me. So, I'll happily use my 7+ for another year, and see what next year brings :)

    Those crazy Dutch... Here, the banks are far more reckless and will lend people money they will never in a lifetime be able to repay.
     
  18. TwoBytes macrumors 68030

    TwoBytes

    Joined:
    Jun 2, 2008
    #18
    read it loud and clear Apple. Your 'budget' phone needs to have a budget price. Especially in this climate and especially in the far east where Apple isn't a dominating phone brand. Lower the cost already. This XR Budget price xtra ridiculous.
     
  19. Steve121178 macrumors 601

    Steve121178

    Joined:
    Apr 13, 2010
    Location:
    Bedfordshire, UK
    #19
    Apple have bitten the hands that feed them with some outrageous price increases in recent years. Good.
     
  20. HobbesInVA macrumors regular

    HobbesInVA

    Joined:
    Aug 29, 2018
    Location:
    Chesapeake, VA
    #20
    The XR is overpriced at $700+USD. IMHO, the start cost should start at $500USD. With regards to the other iPhones, most people do not think it's worth it to upgrade every year when improvements are marginal. The smartphone industry has matured and the exponential leaps aren't there at this time. The next big thing for smartphones may be 5G and that's likely 3-5 years off for the iPhone.
     
  21. MacWorld78 macrumors 6502

    MacWorld78

    Joined:
    Jul 25, 2012
    #21
    The mobile phone should cost no more then £500 +/-, anything over £1k that's pretty extreme "profit" for the high volume sales.

    Living in Japan is really expensive already.
     
  22. Wando64 macrumors 6502

    Wando64

    Joined:
    Jul 11, 2013
    #22
    Two wrongs don't make a right.
     
  23. sshambles macrumors 6502a

    sshambles

    Joined:
    Oct 19, 2005
    Location:
    Australia
    #23
    This won’t happen. Mark my words. Happy to eat them if it does, but no way does this happen.
     
  24. recoil80 macrumors 68020

    Joined:
    Jul 16, 2014
    #24
    Don't know if that specific rumor is true but in my country we can buy iPhone Xs with a 200€ discount for black friday and I don't remember such a good discount after 2 months. iPhone X is now on sale for less than 800€ and iPhone 8 for less than 600
    We have always had good deals on old models, so a huge discount on an iPhone 7 or a 6s wouldn't surprise me, but not on a brand new model.

    I don't expect discounts from Apple.com for BF tomorrow, but the deals I'm talking about are on the equivalent of Best Buy in Italy, not an unknown online shop.
    It is possibile Apple started to discount the iPhones to carriers and resellers to they can keep the price high on their own store but sell more phones via third party shops.
     
  25. Emanuel Rodriguez macrumors member

    Emanuel Rodriguez

    Joined:
    Oct 17, 2018
    #25
    Yeah, I'm a huge fan of TouchID myself. FaceID seems like interesting technology, but not quite as practical.
     

Share This Page