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

[dotnet]

The Air just became the cheap model. When it was first released it was very expensive for what it was... it was never meant to be the Volkswagen of laptops. It just became that way due to age and lack of updates.

Indeed, when the MacBook Air was introduced in 2008 it cost $2500 in Australia. The regular MacBook at the time started at $1500. The Air was seen as exclusive bling for people who could afford it or who treasured portability above all else.

 

[Romeo_Nightfall]

Why do people whine about prices? Too expensive for you, don't buy it. Problem solved.

There are tons of Windows computers you can buy cheap, and crappy android phones that wont ever see one update to buy

Apple has far more insight into what consumers buy of their products and at what price points than a group of people chatting in a forum ever will. Apple, like all businesses, sets prices according to what they perceive the market will bear.

The iPhone you buy will last you a LONG time if you care, i've been keeping my iphones 3.5 years on average. Name me one android phone that gets support that long? Apple is likely charging more because they see consumers are using their phones years longer than they used to...

Sir? You think your comment is very smart? I have to disappoint You.
Apple has great insight as do brokers but still there a methods where many people guess and most of the time are as good or better than the experts.

They made the iphone 6 slow on purpose and it was not usable after a year / they now have to suffer and replace accus for cheap

AND android has now many phones and brands who offer a guaranted 3 year update cycle /

And proven, Android phones offered or offer same or better quality hw BEFORE apple offers it. Huawai mate 20 pro for example / take a look at it. Oled screens samsung was offering for ages, and so on

I hope You dont shoot the messenger!

 

[Glideslope]

Apple is very good at playing chess, this is just another chess move, if in fact this proves to be true.

The WSJ has been known to be wrong on occasion. Or maybe the market in Japan is very different and as such, a different regional tactic is needed.

The Japanese market is being mentioned as an example of a global problem with Apple’s business model. IMO, Tim has no idea where he wants Apple to be in 5 years.

 

[ValO]

Uhm ... am a techy ... bit older but the camera and screen on my 7 are insanely good. The photos are surreal good. Am not used to such good fotos. I dont need it any better and I doubt there are a lot of people who even care about. The just try to manipulate people with the new unsharp effect and stuff.

If You need good zoomed photos You need a real camera still anyways.
Samsung had good oled screens with the s8 already You can buy this for a far smaller amount, and its still a superior phone with its edge display

I personally hate that edge display, it triggers accidental touches, and distorts the image perhaps even more than a notch .
So, everything is subjective.

 

[Rob_2811]

Unfortunately, this discussion has Become circular talk. Where you’re off tangent, is I’m not contesting Ming Kuo’s hardware predictions, that’s not really the concept of this discussion, I am discussing the iPhone productions been halted based off frivolous data that has no concrete evidence of anything regarding hardware slowing production. My point being, and (I think I made this clear as possible at least three times), you were referring about Ming-Kuo making hardware future predictions, what does that have to do with anything with those ‘sources’ making claims stating Apple is limiting iPhone production? Kuo is one source, and I do give you credit that he is the most accurate source for product releases, what in terms of actually having anything of evidentiary nature regarding limiting production, but has no relation to what you’re referring to at all in this article.

There isn't any confusion. You erroneously tried to claim that analysts don't have inside information with Apple suppliers in this post here which I'll quote again ...

Realistically, I don’t know how much I actually believe in these analyst predictions. Last year, as an example, the 2017 iPhone X was rumored to be decreased in production early on after its initial release, yet Tim Cook stated that the X was the most popular selling iPhone every week for that quarter. So what does that tell you?

Analysts don’t have inside information to Apple suppliers, they merely are making predictions based off what they believe, not what they know.

I pointed out that this is clearly nonsense as Ming Chi Kuo has a rock solid track record of hardware release predictions based on what is almost certainly inside information from the Far East supply chain.

Again to be really really clear your claims that nobody would know if Apple were cutting orders from suppliers is absolute nonsense.

It has been proven time and time again that Apple is unable to control information coming from their Asian suppliers.

 

[ValO]

Sir? You think your comment is very smart? I have to disappoint You.
Apple has great insight as do brokers but still there a methods where many people guess and most of the time are as good or better than the experts.

They made the iphone 6 slow on purpose and it was not usable after a year / they now have to suffer and replace accus for cheap

AND android has now many phones and brands who offer a guaranted 3 year update cycle /

And proven, Android phones offered or offer same or better quality hw BEFORE apple offers it. Huawai mate 20 pro for example / take a look at it. Oled screens samsung was offering for ages, and so on

I hope You dont shoot the messenger!

We won’ t . Just that it isn’ t entirely true what you are stating.

 

[9081094]

Uhm ... am a techy ... bit older but the camera and screen on my 7 are insanely good. The photos are surreal good. Am not used to such good fotos. I dont need it any better and I doubt there are a lot of people who even care about. The just try to manipulate people with the new unsharp effect and stuff.

If You need good zoomed photos You need a real camera still anyways.
Samsung had good oled screens with the s8 already You can buy this for a far smaller amount, and its still a superior phone with its edge display

The S9 has a comparable screen and camera as the iPhone XS. It has more ram and storage. Yet it’s cheaper to even the cheapest iPhone XR which it far succeeds. Let Tim explain the reasons why... for me as a customer I feel robbed and it’s Apple that’s driving me away.

 

[CaTOAGU]

Steve Jobs was no philanthropist but he knew there is a difference between premium and ridiculous.

And he also knew that computing is very dependent on the network effect.

Network effect, is precisely what is being imperilled by exorbitant pricing.

 

[Peperino]

looks like shareholders are angry maybe with Tim Cook's greed, huh?

Shareholders angry with Cook's greed and users are angry with the zero innovation and lame spec entry products.

 

[ValO]

The S9 has a comparable screen and camera as the iPhone XS. It has more ram and storage. Yet it’s cheaper to even the cheapest iPhone XR which it far succeeds. Let Tim explain the reasons why... for me as a customer I feel robbed and it’s Apple that’s driving me away.

Samsung has a lot more headroom to do that, because they are asking and receiving a ridiculous high price for oled panels and dram from.... apple.
Their mobile division is in trouble if you look at revenue, and their parts manufacturing department is booming in revenue.
Both facts are tied with your question.
But they stopped giving sales numbers of their smartphones a long time ago so...

 

[9081094]

I really hesitate to agree with the, it wouldn't have happened under Steve arguments but in this specific instance you might be right. Steve spoke out against Apple going after ridiculous profits, he wanted a balance of great products sold to as many people as possible. He cut the price of the original iPhone, and update after update kept the prices mostly the same. During Keynotes much was made of the *relatively* reasonable prices. Under Tim Cook prices have gone up much further much quicker.

In Apples dark days, when they nearly went bankrupt, they were selling terrible products that no one wanted for insane prices. Today the products are still compelling, all be it with some caveats e.g the butterfly keyboard, lack of ports. On the plus side the A12X processor in the iPad Pro is class leading and then some, beating out most laptop processors across the board. The screens on the iPhone XS, XS Max and XR are the best you can get, if you want an accurate display. The MacBook Pros storage speeds are insane. But...

The prices however are getting beyond anything reasonable for most people. Aside from the iPhones the biggest indicator for me is the MacBook Air starting at around $1200. During its introduction Tim stated it was Apples most beloved product, one of the reasons for that was, undeniably, its price. Not it's original price but what it became - a sub $1000 laptop, that was fast, reliable, secure and great to use. And therein lies the problem, Apple needs profits but to get those profits it needs a viable ecosystem, and that requires sufficient numbers of users to be able to afford their products. This key fact is what Steve Jobs recognised and it is here there *appears* to be a potential weakness in Apples under Tim. Apple have never been interested in a race to the bottom or in chasing market share, and that is correct, they don't need the most users, however they *do* need enough users. Tim's pricing of current hardware is in my opinion starting to threaten that need and Steve demonstrably would not have let that happen.

I totally agree with you except the Mac hardware. The whole range is overpriced and from a technology point of view: outdated. It still may look nice but so do the new laptops from hp and dell or the copycats. The newly introduced Mac mini and iMac pro can’t handle the heating of the processors. If this is the case it means a failure in design for me. So still compelling....

 

[dotnet]

The Apple Watch actually has increased in price point considerably over the last two years. The stainless steel Apple Watch increased from $600 from where it was two years ago to now $750.00 for the 44MM.

You are forgetting that the watch from two years ago didn't have cellular connectivity, whereas today's SS watch does. If you compare the aluminium cellular and non-cellular models you'll find that the price difference is only $20 short of the "price rise" you're complaining about. The watch prices have essentially remained the same, it's just that non-cellular isn't an option with SS anymore.

 

[9081094]

Samsung has a lot more headroom to do that, because they are asking and receiving a ridiculous high price for oled panels and dram from.... apple.
Their mobile division is in trouble if you look at revenue, and their parts manufacturing department is booming in revenue.
Both facts are tied with your question.
But they stopped giving sales numbers of their smartphones a long time ago so...

Except the iPhone XR doesn’t come with an oled display from Samsung, has lower specs than a Galaxy S9 and is still more expensive to buy than the Galaxy S9. I hope Tim can explain that.

 

[44267547]

You are forgetting that the watch from two years ago didn't have cellular connectivity, whereas today's SS watch does. If you compare the aluminium cellular and non-cellular models you'll find that the price difference is only $20 short of the "price rise" you're complaining about. The watch prices have essentially remained the same, it's just that non-cellular isn't an option with SS anymore.

Is a $150 price for the Series 4 price hike really factor that much of a consumers decision because of LTE? I don’t think that’s a major selling point currently for the Apple Watch to justify that price influx, even though the Apple Watch has many other improved capabilities, it’s not a complaint, it’s a general observation that the consumer likely isn’t spending that because the aluminum model performs the same watchOS, you’re essentially purchasing aesthetics with the Sapphire display and stainless steel casing with the Series 4, Which I suspect the average consumer does not care about aesthetics as much as Apple is pricing the stainless model at.

 

[mscice]

Much better phones with better tech and cheaper out there ... BUT they dont have IOS

All apple stuff is WAY overpriced... apple stock is going down, maybe now they will wake up

Macbook air was 999... why did they spoke up 200$ ?? thats not a AIR replacement, its being greedy.

 

[ValO]

It has a better camera (s9 is single cam, just like the xr) and soc though.
What Samsung makes less on profits of their smartphone line up, they compensate with upping their prices and profits on components(especially dram and oled).
So Samsung is in a position to do that now.
That is their business model right now, but it is risky, if other oled suppliers are up to par, they will have different problems.

 

[9081094]

Is a $150 price for the Series 4 price hike really factor that much of a consumers because of LTE? I don’t think that’s a major selling point currently for the Apple Watch to justify that price influx, even though the Apple Watch has many other improved capabilities, it’s not a complaint, it’s a general observation that the consumer likely isn’t spending that because the aluminum model performs the same watchOS, you’re essentially purchasing aesthetics with the Sapphire display and stainless steel casing with the Series 4, Which I suspect the average consumer does not care about aesthetics as much as Apple is pricing the stainless model at.

For € 150 I can get a whole watch with SS and real sapphire. My edit: also a SS band included.
[doublepost=1542924587][/doublepost]

Much better phones with better tech and cheaper out there ... BUT they dont have IOS

All apple stuff is WAY overpriced... apple stock is going down, maybe now they will wake up

Macbook air was 999... why did they spoke up 200$ ?? thats not a AIR replacement, its being greedy.

iOS these days isn’t a compelling reason anymore. Maybe it was till a few years ago. Now android is on par and in some areas even ahead of iOS.

 

[run1976]

Apple's own guidance shows they expect to continue growing.

Apple's guidance for this coming holiday quarter is for revenue between $89 billion and $93 billion.

Last holiday quarter Apple posted quarterly revenue of $88.3 billion.

They have been growing double digits lately. Seems like quite a reduction in growth rate to me.

 

[ValO]

For € 150 I can get a whole watch with SS and real sapphire. My edit: also a SS band included.
[doublepost=1542924587][/doublepost]
iOS these days isn’t a compelling reason anymore. Maybe it was till a few years ago. Now android is on par and in some areas even ahead of iOS.

Yeah, except that it needs about 8gb of ram to keep up with ios on 4gb. But 8gbs ... specs!!!

 

[tromboneaholic]

How do you think he makes the predictions about their upcoming releases. Do you think he is just guessing? He is being fed information on component orders from Apples supply chain!

Here is a rundown of his predictions over a four year period up to and including the iPhone 6s courtesy of cult of Mac. Twenty nine predictions of which only two were incorrect. That some record for someone who is "guesstimating’s based off stock market value".

Forgive me for my ignorance but I'm fairly sure he isn't able to predict the components of future hardware based on a stock price.

He is clearly very well connected within Apples supply chain.

Of course he can only estimate future sales, he isn't any different from anybody else in that regard but would he have access to information about orders Apple is placing with suppliers? Very likely.


Year Prediction Outcome
2015 iPhone 6s coming in fall with tougher aluminum case in new colors, including Rose Gold. Also featuring Force Touch; A9 chip; 12-Megapixel camera and more Correct
2014 New Apple TV with motion-tracking technology will be announced in the fall. Wrong
2014 Apple will unveil a 12-inch, redesigned MacBook Air with Retina display in the fall. Correct
2014 A bigger 5.5-inch iPhone will ship separately at the end of the year. Correct, but timing wrong
2014 The 4.7-inch iPhone 6 is on track for a fall release with a 1334×750 resolution. Correct
2014 Apple will unveil the iWatch in the third quarter. There will be two models with 1.3-inch and 1.5-inch flexible AMOLED displays. Expect wireless charging, a 200-250 mAh battery, a Sapphire cover, biometric recognition capabilities, and NFC. Mostly right
2014 The third-gen iPad mini will get updated with an A8 chip and Touch ID while the current model will likely be sold at a lower cost. Correct
2014 The second-gen iPad Air will be announced in the fall with an A8 chip, Touch ID, and 8-megapixel camera. Correct
2014 Apple will release a lower-cost iMac in the second quarter. Correct
2013 Apple will introduce the iPhone 5s in the summer. Correct
2013 The fifth-gen iPad will be significantly thinner and lighter with new bezel, 7.5mm thickness, and 64-bit A7X processor. Correct
2013 The second iPad mini will be Retina. Correct
2013 Apple will kill the iPhone 4s and repackage the iPhone 5 in a cheaper, plastic model with multiple colors. Correct
2013 The 5s home button will be convex instead of concave, and there will be a 128GB model. Wrong
2013 The iPhone 5s will feature a Sapphire fingerprint sensor in its home button, an A7 chip, an improved camera, a dual-LED flash, and come in gold. Correct
2013 Apple will phase out the non-Retina MacBook Pro completely in the fall. Correct
2013 The MacBook Air will not get a Retina display and instead get a processor upgrade to Intel’s Haswell chipset in June. Haswell also coming to the iMac. Correct
2013 Deals with content providers are keeping Apple’s bigger plans for the TV at bay, so don’t expect anything major in that area until at least 2014. Sounds right
2013 There will be a minor Apple TV refresh within the first quarter. Correct
2012 Redesigned iPod Nano, iPod touch and iPhone 5 launch in September. Correct
2012 Tweaked fourth-gen iPad will be released in the fall. Correct
2012 iPad mini will be announced in September. Correct
2012 13-inch Retina MacBook Pro coming by end of year. Correct
2012 Retina MacBook Pro coming at WWDC with SSD/HDD options and no disc drive. Correct
2012 Apple will kill the 17-inch MacBook Pro. Correct
2011 MacBook Air with Thunderbolt will go intro production in May. Correct
2011 The iPhone 4s will feature slight design modifications from the iPhone 4 and come with A5 chip, improved camera, dual baseband. Fall release planned. Correct
2011 Apple will ship the white iPhone 4 in April. Correct
2011 Apple will not put a Retina display in the iPad 2. Correct

The issue is not his accuracy about upcoming products. It’s about his inaccuracy in regards to sales.

 

[ikramerica]

I agree 100%. I guess I wasn’t very clear before. Some analysts (and posters) are focused on Apple’s overall increased guidance for Q1 without taking into account the iPhone has stagnant unit sales for four years now and could have reached peak revenue last year. Devices drive everything Apple does due to their relatively closed ecosystem. If devices peak then the amount of services flowing over those devices will also peak shortly thereafter.

I’m one of the people they are slowly losing after 27 years.

I don’t want to upgrade from iPhone 7 because I don’t want to pay $1200 for an equivalent phone that’s hobbled by Face ID and all glass construction.

I am happy with my MacBook Pro non-retina 4 core-i7, legacy ports and discrete graphics. I’ve upgraded memory and SSD over time. My TB dock connects a big monitor, Sata drive bay, enet, etc. It just works.

But Apple will stop supporting these products with OS updates and then I’ll be forced to buy something. And what they are selling is much more expensive and less expandable. I’d have to shell out many thousands just to get what I have.

So they will lose me on the services and subscription side too. And my wife. And son.

 

[ValO]

They have been growing double digits lately. Seems like quite a reduction in growth rate to me.

Yeah, that is why Apple will beat it at least with 2 billion...95 to 96 billion.

 

[tromboneaholic]

They have been growing double digits lately. Seems like quite a reduction in growth rate to me.

That’s how cycles go. The person I replied to apparently thinks more means fewer.

 

[ValO]

That’s how cycles go. The person I replied to apparently thinks more means fewer.

Yeah, apple is going down. Lol.
I think it is great that apple won’ t disclose unit sales anymore.
Wall Street is driven by certain metrics, and that is asp and units sold. That is it.
This will give Apple some room to cut prices without having to handle shareholders all the time. It will be less transparent and shareholders won’ t get access to all the numbers, I think that could have a positive effect on customers.

 

[Baymowe335]

So these "fake" news reports help apple out in the long term? They can get more shares off the street for cheaper?

They have a sliver lining. Long term, value always prevails and profits matter.