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

[Wiesenlooser]

We’ll know when they report earnings but their guidance for the holiday quarter wasn’t weak. So either Apple is totally wrong with their expectations or these rumors aren’t painting an accurate picture. Just curious, when is the last time Apple really missed its own guidance? I’m talking after they changed how they forecast so they weren’t lowballing guidance every quarter. Anybody know?

The iPhone XR makes you look stupid on two fronts:


- It makes you look like you can't afford the "real" iPhone

- And yet, It is still a very expensive phone. It is okay for Apple to have a lower priced model (SE), but it can't be priced the same as the flagship models of the competition.

 

[CWallace]

WSJ working overtime this year to drive the stock price down. Is there any reason we should trust WSJ rumors? I mean, remember these WSJ gems?

Exactly. These analysts cherry-pick the one of the multiple suppliers that Apple has reduced orders for and proclaim that the entire chain has seen cuts when they have in fact just seen a readjustment of allocations between them.

Apple will announce a record-breaking Q1 2019 and iPhone Average Sales Prices will be higher than ever, which will be proof that the XS and XR lines were their best-sellers.

 

[decafjava]

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.

Bingo, this is why I paid the discounted battery price and am hanging on to my 7 plus for another year or two. A friend of mine opted for the 8 plus rather than the X for the same reason. BTW didn't know that subsidized phones will affect house buying in the Netherlands.

 

[MacWorld78]

The iPhone XR makes you look stupid on two fronts:

- It makes you look like you can't afford the "real" iPhone

- And yet, It is still a very expensive phone. It is okay for Apple to have a lower priced model (SE), but it can't be priced the same as the flagship models of the competition.

Having a iPhone XR doesn't make you look stupid.

 

[Someyoungguy]

That's why Apple sold only 3 million iPhones in the USA. Oh, wait...

Oh wait, 3M is <1% of the US population.

 

[69Mustang]

WSJ working overtime this year to drive the stock price down. Is there any reason we should trust WSJ rumors? I mean, remember these WSJ gems?

Apple Cuts Orders for iPhone Parts
By Juro Osawa
Updated Jan. 13, 2013 10:20 p.m. ET

Apple Inc. has cut its orders for components for the iPhone 5 due to weaker-than-expected demand, people familiar with the situation said Monday.

Apple's orders for iPhone 5 screens for the January-March quarter, for example, have dropped to roughly half of what the company had previously planned to order, two of the people said.

Or this?

Apple to Cut iPhone X Production in the Face of Weak Demand
By Yoko Kubota in Beijing and
Tripp Mickle in San Francisco
Updated Jan. 30, 2018 12:55 p.m. ET

Apple Inc. AAPL -0.11% is slashing planned production of the iPhone X for the three-month period ending March 31, people familiar with the matter say, in a sign of weaker-than-expected demand for the pricey handset.

Apple plans to make about 20 million iPhone X handsets in the first quarter, down from roughly 40 million initially planned, according to a person with knowledge of Apple’s production goals. Other people familiar with the iPhone supply chain said Apple had cut orders for components used in the iPhone X by 60%.

You do this on every thread about production. You make the claim that the analyst were wrong, yet never produce any evidence to support your claim. It would be really nice if you actually provided evidence. Otherwise, you are just the opposite side of the WSJ coin that you rail against.

On topic. This claim will be easily proven or disproved shortly. If the pricing of the XR goes down in Japan - true. If not - false. If the production of the X comes back - true. If not - false.

 

[tromboneaholic]

One day, Tim Cook can't take all his money to the heaven, because we all enter this world with empty hands and leave this world empty hands once again.

He's actually already started donating his wealth to charities. He's paying for his nephew's college education, and giving the rest to philanthropic projects.

 

[Matthew.H]

The iPhone XR makes you look stupid on two fronts:


- It makes you look like you can't afford the "real" iPhone

- And yet, It is still a very expensive phone. It is okay for Apple to have a lower priced model (SE), but it can't be priced the same as the flagship models of the competition.

1. If you care what people think about you based on your choice of phone you likely have bigger problems. Also I have the XR myself and price wasn't a consideration. I can easily afford the more expensive models but the OLED screens give me eye strain so the X, XS and XS Max were write offs for myself and likely other customers with the same issue.

2. Yes the XR could be cheaper but the OLED models are also considerably more expensive than the competition as well yet have similar specs. Apple products have always been priced higher than the competition.

 

[Danilo - Italy]

Here in Italy not many people can buy a phone that cost more than 800 Euros. Only very few if it cost more than 1,000 Euros.

 

[HobbesInVA]

Possibly because it falls between two stools.... people who have that kind of money to spend on a phone want the best model. For those who just want a decent iPhone, the XR may be too expensive.

You hit the nail on the head! Apple would need to eliminate iPhone 7 and iPhone 8 for new sales for the XR to take off.

 

[FelixDerKater]

I prefer the look of the screen on my Xr to my XS Max, BUT the bezels have to shrink.

 

[CaTOAGU]

This has the whiff of Apple losing its way completely , like the last time Steve wasn’t at the helm .

Being run by an accountant is the road to ruin

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.

 

[tromboneaholic]

Apple's own guidance and decision to no longer report sales for starters. You honestly think that was just a coincidence?

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.

 

[WatchFromAfar]

Exactly. These analysts cherry-pick the one of the multiple suppliers that Apple has reduced orders for and proclaim that the entire chain has seen cuts when they have in fact just seen a readjustment of allocations between them.

Apple will announce a record-breaking Q1 2019 and iPhone Average Sales Prices will be higher than ever, which will be proof that the XS and XR lines were their best-sellers.

How do you come to the conclusion that because "Average Sales Prices will be higher than ever" it's proof that "the XS and XR lines were their best-sellers"? Wasn't the lower than average priced iPhone 8 Apple's best selling iPhone last year?

What's to say it will still be this year?

 

[ikramerica]

I’ve recommended iPhone 8 to people who ask me what to buy. And my wife and I put in the $29 battery upgrade to make our phones like new.

I don’t want Face ID, ever. So probably my last iPhone.

 

[JosephAW]

Funny they should say restarting the iPhone X production.
My friend when to buy a iPhone XS who didn't have an iPhone before and when we saw it we said, are you sure that's not a X? Looked up the model model and sure enough they sold him an old X model.

 

[RebelOU812]

Maybe it’s because:

XR is 177 grams
XS is 174 grams

SE is 113 grams

Apple quit peeing down customers backs and telling them it’s raining. Quit locking your customers down with ball and chain....and liberate them from being slaves to their device.

 

[decafjava]

He's actually already started donating his wealth to charities. He's paying for his nephew's college education, and giving the rest to philanthropic projects.

Ahhh well good for him, I am not in the "fire Tim Cook" club nor do I think he's the bees knees but this is a point in his favour, just like Bill Gates.

 

[pickaxe]

Patently obviously based on what? There is zero hard evidence just supply chain rumors that show up like clockwork every freaking year. Just because MR posters want these rumors to be true doesn’t mean they are.

Gotta say, I've been here for years and you're one of the biggest unpaid shills I've ever seen in my 30 years of browsing internet message boards. What are you even gaining from this?

 

[magicschoolbus]

Apple is the greediest company. They are still selling an iPad mini that hasn’t been updated since 2015 for 400$. Insane.

 

[HobbesInVA]

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.

Apple is cannibalizing the iPhone line up. Offering a consumer too many choices is just as bad if not worse than not offering enough choices. A person sees this in their other product lines - iPad, Macbooks, Macbook Airs, Macbook Pros, etc.

 

[tromboneaholic]

Gotta say, I've been here for years and you're one of the biggest unpaid shills I've ever seen in my 30 years of browsing internet message boards. What are you even gaining from this?

To be fair, last year at this time the same sources kept reporting on iPhone X production cuts despite the fact that it wound up being the world's best-selling smartphone for its first 6 months.

 

[coolfactor]

Better cut those bezels in half Apple. They look hideous!

Have you actually used an iPhone XR, held one in your hand? There's nothing wrong with the bezels. It's a beautiful phone, just a tad too big. They should have made it slightly smaller overall.
[doublepost=1542895865][/doublepost]

Yeah, I'm a huge fan of TouchID myself. FaceID seems like interesting technology, but not quite as practical.

Two weeks ago, I would have disagreed with you, but I'm finding FaceID to be better than TouchID, particularly with how iOS 12 handles passwords. It makes unlocking via passwords to be a seamless experience. It's almost magical how it works.

Logging into a site on a TouchID device requires:
1) Choose which password to auto-fill with.
2) TouchID to authorize auto-fill.
3) Tap to log into site.

Logging in with FaceID requires:
1) Choose which password to auto-fill.
(authorization happens automatically with FaceID)
2) Tap to log in.

I'm loving FaceID, although I do agree with others about the annoyance of having to lift the device to unlock when it's laying on a flat surface at my desk. But a future upright Qi charger will solve that, while keeping the phone charged.

 

[Eithanius]

Discontinue the 7, bring the 8 and XR prices down one notch...

 

[69Mustang]

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.

Apples guidance is predicting a ~1% to ~5% gain in revenue. For Apple to expect such meager gains in revenue, they must be expecting lower unit sales or at best, flat unit sales. iPhones account for an outsized portion of Apple's revenue and have an equally outsized impact on their gains/declines.

If Apple posts $89 Billion... that's flat YoY. For AAPL's sake, Apple shouldn't post $89 Billion.