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

[Khedron]

Why doesn’t it multi task?? iOS on iPad has split screen. App testing and memory management is better on iOS via iPhone XS and Max. It’s been proven in testing to keep more apps open in memory over other android phones with 6-8 GB of ram. Everyone knows android is more power and ram hungry.

Two apps side by side. Wow. On my Android home screen I have 5 constantly updated widgets before I even launch an app, and can do split screen on my phone not a separate tablet.

The grid of icons interface demonstrates have pathetically out of date iOS is.

 

[iMEric984]

Two apps side by side. Wow. On my Android home screen I have 5 constantly updated widgets before I even launch an app, and can do split screen on my phone not a separate tablet.

The grid of icons interface demonstrates have pathetically out of date iOS is.

And? I have widgets too. Grouped notifications. Sorry. Android will never be as efficient as iOS.

I have like 10 widgets running at the same time.

 

[MacDanF]

From Apple's most recent earnings call:

"We sold 46.9 million iPhones during the quarter, with growth of 20% or more in several markets, including Japan, Australia, New Zealand, Sweden Norway, Chile, and Vietnam."

Some declined and your missing China and India that are accounting for almost all of the growth there. If you remember 2 years ago Apple projections were very very ambitious. Chinese market was suppose to become bigger for Apple than US. It did not materialized and probably never will. Apple can’t compete there on prices and there is not a huge fan pool that grew with the brand like in the US.

 

[ronno]

Looks like it's happening:
"iPhone XR price drops by ~$100 at Japanese carrier over two year contract"

https://9to5mac.com/2018/11/26/iphone-xr-price-drop-japan/
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You seem to have made some snarky comments after I mentioned that it would be naive to take this article at face value, despite examples of this type of report being incorrect for the past 5 years...

ahem: As rumored, iPhone XR price drops by ~$100 at Japanese carrier over two year contract


"Apple is believed to have authorized carriers to discount XR models more heavily due to lower-than-expected demand for the XR in the country. Apple iPhone dominates the smartphone market in Japan with about 50% of sales, but it seems demand for Apple’s latest models was lukewarm.

Rather than switching to Android, Japanese customers appear to be buying iPhone 8 and iPhone 8 Plus in large volume, which has impacted sales of the XS and XR in the region.

Do not expect to see price cuts instated worldwide for the iPhone XR based on the changes in the Japanese market. Apple is careful to apply discounting practices selectively in specific markets, where it deems it necessary to boost sales."

 

[tromboneaholic]

Looks like it's happening:
ahem: As rumored, iPhone XR price drops by ~$100 at Japanese carrier over two year contract


"Apple is believed to have authorized carriers to discount XR models more heavily due to lower-than-expected demand for the XR in the country. Apple iPhone dominates the smartphone market in Japan with about 50% of sales, but it seems demand for Apple’s latest models was lukewarm.

Rather than switching to Android, Japanese customers appear to be buying iPhone 8 and iPhone 8 Plus in large volume, which has impacted sales of the XS and XR in the region.

Do not expect to see price cuts instated worldwide for the iPhone XR based on the changes in the Japanese market. Apple is careful to apply discounting practices selectively in specific markets, where it deems it necessary to boost sales."

Actually, the rumor was a $100 price cut by Apple in Japan, which this is not.

It's an incentive subsidy from the carrier only on select plans with a 2-year contract, and the subscriber has to pay back the discount if they cancel service before the contract terms are up.

That's a huge difference from Apple cutting the price of iPhone Xr in Japan.

 

[ronno]

Actually, the rumor was a $100 price cut by Apple in Japan, which this is not.

It's an incentive subsidy from the carrier only on select plans with a 2-year contract, and the subscriber has to pay back the discount if they cancel service before the contract terms are up.

That's a huge difference from Apple cutting the price of iPhone Xr in Japan.

Maybe you missed this part, which is the point of the article...

"Apple is believed to have authorized carriers to discount XR models more heavily due to lower-than-expected demand for the XR in the country. Apple iPhone dominates the smartphone market in Japan with about 50% of sales, but it seems demand for Apple’s latest models was lukewarm."

Anyway, not going to argue here.

Cheers.

 

[Rum_Becker]

Actually, the rumor was a $100 price cut by Apple in Japan, which this is not.

It's an incentive subsidy from the carrier only on select plans with a 2-year contract, and the subscriber has to pay back the discount if they cancel service before the contract terms are up.

That's a huge difference from Apple cutting the price of iPhone Xr in Japan.

Nope

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.

 

[tromboneaholic]

Chinese market was suppose to become bigger for Apple than US. It did not materialized and probably never will. Apple can’t compete there on prices and there is not a huge fan pool that grew with the brand like in the US.

That's a bold statement considering Apple was the top-selling mobile phone brand on Alibaba platforms during Singles Day, beating Chinese rivals:
https://www.cnbc.com/2018/11/12/ali...e-was-the-top-selling-mobile-phone-brand.html

Xiaomi and Huawei are normally the top brand...
[doublepost=1543282222][/doublepost]

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.

Apple has no incentive to lock people into a 2-year contract.

This is a carrier subsidy. The carrier recoups the discount if the contract is canceled.

Apple authorized the carrier to promote it.

 

[ronno]

Nope

MacRumors said: ↑
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."

BTW:

sub·si·dy
/ˈsəbsədē/
noun
plural noun: subsidies

1. 1.
   a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.

 

[tromboneaholic]

MacRumors said: ↑
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."

BTW:

sub·si·dy
/ˈsəbsədē/
noun
plural noun: subsidies

1. 1.
   a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.

The carrier is offering the subsidy, not Apple. That's why there is a 2-year contract required.

 

[dotnet]

This wouldn't be related to Apple's antitrust rumblings in Japan? Seems like this is nothing new:
https://www.japantimes.co.jp/news/2...dog-says-apple-may-violating-law-iphone-deals

FWIW, in Australia, Telstra is discounting the AU$1,479 iPhone XR (256) to between AU$1,200 and AU$0 on the smallest and largest data plans, respectively. The AU$2,199 iPhone XS (512) is discounted to between AU$1,800 and AU$0, respectively. There have been similar discounts for iPhones (and others) on contracts for years.

Those Japanese carrier subsidies sound puny in comparison, but I suspect the contract cost for a similar amount of mobile data might be much lower there.

In short, this is non-news, and there is no indication that Apple "intends to cut prices".

 

[ronno]

The carrier is offering the subsidy, not Apple. That's why there is a 2-year contract required.

Apple plans to discount the price of iPhone XR models in Japan by offering subsidies to

Goodnight, I am now officially off this topic.
Just ignored you so hope not to see your posts anymore.

 

[I7guy]

Apple will not be satisfied if the Xr sells at the same level of the Note 9 or S9. (That is if, since nobody knows the sales numbers (much less by country or region) or even if this rumor is true)

 

[vipergts2207]

Actually, the rumor was a $100 price cut by Apple in Japan, which this is not.

It's an incentive subsidy from the carrier only on select plans with a 2-year contract, and the subscriber has to pay back the discount if they cancel service before the contract terms are up.

That's a huge difference from Apple cutting the price of iPhone Xr in Japan.

I will say, nice try at rewriting the rumor because it didn’t fit your narrative.

 

[tromboneaholic]

I will say, nice try at rewriting the rumor because it didn’t fit your narrative.

When I bought my iPhone 6 for $199 in 2014, it wasn't because Apple had discounted the price in the US by offering subsidies to carriers (due to poor sales of iPhone 6).

The price of the phone was still $649, but my carrier offered me a subsidy if I signed a 2-year contract.

The carrier offers a subsidy on popular phones as an incentive to attract new customers and lock in existing customers on a contract.

 

[78Bandit]

Actually, the rumor was a $100 price cut by Apple in Japan, which this is not.

It's an incentive subsidy from the carrier only on select plans with a 2-year contract, and the subscriber has to pay back the discount if they cancel service before the contract terms are up.

That's a huge difference from Apple cutting the price of iPhone Xr in Japan.

But who is paying the difference for the majority of customers who don't cancel their agreement before the 24 months are up? The carriers aren't leaving $100 of revenue on the table for one particular phone out of the goodness of their hearts. It certainly sounds like Apple is selling the iPhone XR to Japanese carriers for a lower amount than they were before on the condition that the wholesale price drop only be passed on to the customer through a 24 month financing period.

 

[tromboneaholic]

But who is paying the difference for the majority of customers who don't cancel their agreement before the 24 months are up?

The carriers recoups their cost over 24 months. That's why the customer has to pay the carrier if they cancel. Just like all carrier subsidies have always worked forever. Carriers offer subsidies all the time. This is nothing new.

The lie was that Apple was offering the subsidy.

 

[ftaok]

But who is paying the difference for the majority of customers who don't cancel their agreement before the 24 months are up? The carriers aren't leaving $100 of revenue on the table for one particular phone out of the goodness of their hearts. It certainly sounds like Apple is selling the iPhone XR to Japanese carriers for a lower amount than they were before on the condition that the wholesale price drop only be passed on to the customer through a 24 month financing period.

On these carrier subsidy deals, the carrier pays the difference. However, they more than make up for it because they've locked in the subscriber for 24 months. Ultimately, the subscriber pays for it one way or another.

My interpretation is that Apple is still selling the Xr to this particular Japanese carrier at the same price. What they've seemed to allow is for this carrier to offer a promotion.

For the WSJ and other outlets to purport this as an "Apple Discount" is misleading and irresponsible. If this were an Apple discount, all Japanese carriers would have the same deal, no? I seriously doubt that Apple is offering a subsidy to just one Japanese carrier as the others would cry foul and Apple Japan would likely have some sort of trade organization up their @$$.

 

[The Game 161]

Two apps side by side. Wow. On my Android home screen I have 5 constantly updated widgets before I even launch an app, and can do split screen on my phone not a separate tablet.

The grid of icons interface demonstrates have pathetically out of date iOS is.

Guessing this comes in IOS 13

 

[78Bandit]

On these carrier subsidy deals, the carrier pays the difference. However, they more than make up for it because they've locked in the subscriber for 24 months. Ultimately, the subscriber pays for it one way or another.

My interpretation is that Apple is still selling the Xr to this particular Japanese carrier at the same price. What they've seemed to allow is for this carrier to offer a promotion.

For the WSJ and other outlets to purport this as an "Apple Discount" is misleading and irresponsible. If this were an Apple discount, all Japanese carriers would have the same deal, no? I seriously doubt that Apple is offering a subsidy to just one Japanese carrier as the others would cry foul and Apple Japan would likely have some sort of trade organization up their @$$.

I get what you are saying, but there is still quite a bit of doubt in my mind as to Apple not making contributions in some manner.

My take from your explanation is both Apple and the carrier in this single market believe they will make more money in the long run if they sell the iPhone XR for $100 less than Apple is forcing them to do while still paying Apple the same unit wholesale cost. If they are going to pay Apple the same amount per phone and sell more of them, why in the world wouldn't Apple encourage this in every market? More units at the same wholesale price equals more revenue & profit to Apple. It sounds like Apple is deliberately leaving money on the table by forcing the carriers to price at a level that inhibits sales.

I'm not saying you're wrong, but if you are right then it would be evidence Apple mispriced the XR by a pretty substantial amount in evaluating the price/demand analysis if the carriers can sell them for $100 less and still make more money while giving Apple the same unit cost.

I do think it is likely Apple is providing some incentive to the carrier beyond just allowing them to sell it at a discount. This could easily be a test case to see how a $100 cut affects sales, and if it turns out positive I would expect to see something similar in more markets.

 

[tromboneaholic]

I get what you are saying, but there is still quite a bit of doubt in my mind as to Apple not making contributions in some manner.

My take from your explanation is both Apple and the carrier in this single market believe they will make more money in the long run if they sell the iPhone XR for $100 less than Apple is forcing them to do while still paying Apple the same unit wholesale cost. If they are going to pay Apple the same amount per phone and sell more of them, why in the world wouldn't Apple encourage this in every market? More units at the same wholesale price equals more revenue & profit to Apple. It sounds like Apple is deliberately leaving money on the table by forcing the carriers to price at a level that inhibits sales.

I'm not saying you're wrong, but if you are right then it would be evidence Apple mispriced the XR by a pretty substantial amount in evaluating the price/demand analysis if the carriers can sell them for $100 less and still make more money while giving Apple the same unit cost.

I do think it is likely Apple is providing some incentive to the carrier beyond just allowing them to sell it at a discount. This could easily be a test case to see how a $100 cut affects sales, and if it turns out positive I would expect to see something similar in more markets.

Do you see Apple having an incentive to lock the customer into a 24 month contract for cellular service it doesn't sell?

 

[ftaok]

I get what you are saying, but there is still quite a bit of doubt in my mind as to Apple not making contributions in some manner.

My take from your explanation is both Apple and the carrier in this single market believe they will make more money in the long run if they sell the iPhone XR for $100 less than Apple is forcing them to do while still paying Apple the same unit wholesale cost. If they are going to pay Apple the same amount per phone and sell more of them, why in the world wouldn't Apple encourage this in every market? More units at the same wholesale price equals more revenue & profit to Apple. It sounds like Apple is deliberately leaving money on the table by forcing the carriers to price at a level that inhibits sales.

I'm not saying you're wrong, but if you are right then it would be evidence Apple mispriced the XR by a pretty substantial amount in evaluating the price/demand analysis if the carriers can sell them for $100 less and still make more money while giving Apple the same unit cost.

I do think it is likely Apple is providing some incentive to the carrier beyond just allowing them to sell it at a discount. This could easily be a test case to see how a $100 cut affects sales, and if it turns out positive I would expect to see something similar in more markets.

The mechanics of how a carrier prices their services is up to them. In a competitive market, which I assume Japan is, the overall churn rate is what drives the carriers nutty. I suspect the level of friction for a subscriber to change carriers in Japan to be very low, so there's huge incentive for a subscriber to shop around for the best monthly rates.

So for the carriers to minimize churn, they will probably have to offer incentives for subscribers to sign long term deals. By having many subs locked in, they reduce the extraneous costs of churn. So to offer a subsidy of $500 (a poster said that he got the Xr for $310 after signing a contract) or so, the carriers expects to reduce churn losses exceeding $500 over the course of two years.

It would be interesting to know whether all carriers are offering discounts on iPhones, or just this single carrier. Also, it would be interesting to know whether this is the first time it's happened in Japan where the lower priced iPhone has been discounted.

 

[UK-MacAddict]

The XR is cheaper than last years models, and you can still buy last years models for less.
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The XR pricing is what the XS/XS Max should be priced at.

I only purchase the latest models and never buy older generations once the new models have been released. In terms of the XR I would not want to buy an inferior product either.

 

[pankajdoharey]

[doublepost=1543034338][/doublepost]
Sorry but you’re wrong. Android is NOT more efficient. That’s why iOS can multitask and hold more apps in memory with much less RAM than android phones with 6-8 GB of RAM.
[doublepost=1543034889][/doublepost]

Read it again i said Android is not the most efficient its the Smartest OS, iOS is quite dumb in comparison.

 

[iMEric984]

Read it again i said Android is not the most efficient its the Smartest OS, iOS is quite dumb in comparison.

So if iOS is “dumb” and better at ram management, and faster. What does that make android??