MacRumors

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Original poster
Apr 12, 2001
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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.

iphonexr.jpg
"A price cut within a month off the release is rare not just for Apple but for smartphone makers in general," said a senior official at a wireless operator, who monitors sales.

Analysts say weaker-than-expected demand for iPhone XR may mirror what happened with the iPhone 5c in 2013, where sales picked up the following year. Apple's higher-priced XS and XS Max models, released a month earlier, appeal more to tech's early adopters who typically fuel initial sales of new iPhones.
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
 

ChrisMoBro

macrumors 6502a
Oct 31, 2016
672
2,673
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.
 
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levitynyc

macrumors 65816
Aug 19, 2006
1,116
3,390
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?
 
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Bokito

macrumors regular
May 29, 2007
231
706
Netherlands
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.

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.

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.
 
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run1976

macrumors regular
Feb 4, 2010
101
74
Germany
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
EarPods
Apple Watch
Memory Upgrades
Apple Pencil

What did I miss?
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.
 
Comment

maflynn

Moderator
Staff member
May 3, 2009
68,451
36,147
Boston
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.
 
Comment

dotnet

macrumors 65816
Apr 10, 2015
1,254
959
Sydney, Australia
It more and more looks like Apple overplayed it's hand with this year's high-priced products.

Yet it seems that this year's lower priced product is the one in the firing line.

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.

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 :)

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.

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.
 
Comment

TwoBytes

macrumors 68030
Jun 2, 2008
2,810
1,664
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.
 
Comment

HobbesInVA

macrumors 6502
Aug 29, 2018
374
512
Chesapeake, VA
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.
 
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recoil80

macrumors 68040
Jul 16, 2014
3,110
2,752
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.
 
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Emanuel Rodriguez

macrumors 6502
Oct 17, 2018
370
590
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.
Yeah, I'm a huge fan of TouchID myself. FaceID seems like interesting technology, but not quite as practical.
 
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