Apple Reportedly Reassigned Some Marketing Staff to Work on Bolstering Sales of iPhone XS and iPhone XR

[I7guy]

You are joking, right? The XR has a screen resolution of 1792x828 in 2018 that’s a joke! No dual lens camera, no 3D Touch, oh and it’s starting price is £749! The XR is a misstep by Apple. It’s over priced when you can just get the iPhone 8 or if you want to pay more the XS.

He's not joking.

A screen is only one component of a phone that as an SOC, that can kick dust in every android handset. It's the 2nd tier 2018 handset and as such doesn't not have the same features as the first tier. And for some people like me, I'm satisfied with a good LCD.

Not the first time apple has done this. The iphone 7 was missing the dual lens of the 7+, except in 2018 the only difference in the two top tier handsets is size.

 

[dguisinger]

People (read: me) are not acting like VAT is unique outside the US. I’m a regular visitor to the US and I know exactly how much sales tax is added at the point of sale. Now, correct me if I’m wrong but there is no US state where sales tax is as high as 20%. My point was simply to remind commenters from the US that prices charged around the world may be significantly more than they are at home and that may account for at least some of the perception of overpricing.

I didn't mean you specifically, just that VAT constantly comes up in this forum by people who compare just on the advertised price alone.... Just felt the need to point out comparing international pricing to US domestic pricing isn't a Apples-to-Apples comparison, because of what order the tax is applied vs the marketing/sales process.

I would believe you are correct, I doubt the US has a 20% sales tax. Here in Minnesota, its somewhere around 6.5 and 7%, it changes depending on the county you are in.

That said.... Apple also seems to add costs for either distributing internationally, or at a minimum they calculate an exchange rate that is estimated high in their favor so that they a) can round up to a clean number and b) insulate themselves from the actual daily changing exchange rate..... so some of the charges overseas seems to be Apple using whatever excuse they can to make more money. I don't believe that is new to Tim Cook, though as a bean counter he may have been influential in that side of things during the SJ days

 

[macsrcool1234]

Instead of throwing more heads at the symptom, fix the cause: These phones are way too expensive.

After AppleCare+ and taxes my iPhone XS Max 512 cost nearly $2000, which is simply ridiculous.

And yet you still bought it.

You're exactly the reason they keep getting away with it.

 

[Mosey Potter]

Apple would do well to market the superior security features of iOS compared to Android, which as I have become aware of recently appears to be a huge data collection/surveillance system feeding Google. This is what keeps me with iPhone, Apple really does not exploit their customer data, and that is worth a few extra bucks for the handset. Says the guy who just upgraded from a 5 to a 7. No way would I spend the big bucks on the Xs or Xr though, way too spendy for what I need in a device. I woulda sprung for a new SE2 though, just for the form factor....

 

[bbednarz]

Many would probably view me as a fanboy but I gotta say these prices are getting to a point of being crazy. Every single product released this year saw a price increase with the exception of the Xs and standard iPad. I think these prices going up are because more and more people are hanging onto their devices for longer. Gotta make that money back somehow. Its a double edged sword for Apple though. People want powerful devices. The more powerful the device the longer it will tend to last. Just disappointing to see the iPad get a $150 increase and last years model not see a decrease of any kind. Apple Watch going up. Mac Mini and MacBook Air prices going up. Base iPhone Max starting at 1100... There becomes a limit and I think people are reaching that point.

 

[Mr. Dee]

I think Apple needs to put profit and greed aside for a change and just make their products realistically affordable starting prices

iPhone XR - $500 64 GBs of storage
iPhone XS - $650 128 GBs of Storage
iPhone XS Max - $750 128 GBs of Storage

iPad Pro 11 inch WiFi - $500 128 GBs of storage
iPad Pro 12.9 inch WiFi - $650 128 GBs of storage

(cellular models $100) extra

MacBook 256 GBs - $800
MacBook Air 256 GBs $999

MacBook Pro $1200

MacBook Pro 13 with Retina 512 GBs $1399
MacBook Pro 15 with Retina 512 GBs $1799

Apple Watch Series 3 - $200
Apple Watch Series 4 (42 mm) - $300
Apple Watch Series 4 (46 mm) - $350

And this goes for all finishes, whether its stainless steel or space gray; stop with pointless, confusing expensive tiered finishes. Stop with non-sensical editions at over a thousand dollars. No watch bad no matter how premium should go over $100. Its a watch bad, not a lifesaver. The cheaper watch bands should be sold only for $19.99, with special packs containing all colors for $99. The Nike ones should only cost like $24.99.

I think these are reasonable prices Apple could surely make good revenue on yearly.

Stop requiring customers to pay for the logo at these extreme prices. The smartphone, tablet and laptop market are basically saturated.

I could upgrade to everything Apple sells today, but I gouging I believe doesn't make it fair. So, I am keeping my 2015 MBP a little longer, my 2017 iPhone X a little longer, as well as my iPad Pro 2017 and Apple Watch Series 3.

 

[Cosmosent]

RE: "While there were similar concerns about the iPhone X, that device ultimately sold well, so time will tell whether these headlines are baseless again. "

NO correlation ! ... the X was the SUPER-HYPED 10-year Anniversary iPhone, & a first of it's kind for AAPL !

With the XR, XS, & XS Max, AAPL clearly over-played their hand, & many of us knew it when they announced them on Sept 12th.

Each should have been priced $100 USD less than they were !

ALSO, the XR is a Dog of an iPhone when the camera is active ... it does NOT act like a true 3 GB DRAM iPhone, NOT when compared to others like the 7+ !

Regardless as to however AAPL's marketing dept may spin it, the XR never got off the ground !

 

[bbednarz]

I think Apple needs to put profit and greed aside for a change and just make their products realistically affordable starting prices

iPhone XR - $500 64 GBs of storage
iPhone XS - $650 128 GBs of Storage
iPhone XS Max - $750 128 GBs of Storage

iPad Pro 11 inch WiFi - $500 128 GBs of storage
iPad Pro 12.9 inch WiFi - $650 128 GBs of storage

(cellular models $100) extra

MacBook 256 GBs - $800
MacBook Air 256 GBs $999

MacBook Pro $1200

MacBook Pro 13 with Retina 512 GBs $1399
MacBook Pro 15 with Retina 512 GBs $1799

Apple Watch Series 3 - $200
Apple Watch Series 4 (42 mm) - $300
Apple Watch Series 4 (46 mm) - $350

And this goes for all finishes, whether its stainless steel or space gray; stop with pointless, confusing expensive tiered finishes. Stop with non-sensical editions at over a thousand dollars. No watch bad no matter how premium should go over $100. Its a watch bad, not a lifesaver. The cheaper watch bands should be sold only for $19.99, with special packs containing all colors for $99. The Nike ones should only cost like $24.99.

I think these are reasonable prices Apple could surely make good revenue on yearly.

Stop requiring customers to pay for the logo at these extreme prices. The smartphone, tablet and laptop market are basically saturated.

I could upgrade to everything Apple sells today, but I gouging I believe doesn't make it fair. So, I am keeping my 2015 MBP a little longer, my 2017 iPhone X a little longer, as well as my iPad Pro 2017 and Apple Watch Series 3.

While I agree the prices are getting out of hand these prices are not realistic at all. Your products are not old, no need to replace what is working perfectly well...

 

[venom600]

I am thoroughly convinced that the only reason Apple is selling phones at these numbers since the 7 came out is highly aggressive carrier promotions. I only upgraded to a 7 because a promotion from ATT literally gave it away a few weeks after it launched, and those promos persisted throughout the life of the phone. That's unprecedented. Same thing happened with the 8 and the X, plus copious amounts of buy one get one free promotions.

When you are literally giving away phones, of course it looks like you're selling a lot. They never had to do that before.

 

[Dave245]

He's not joking.

A screen is only one component of a phone that as an SOC, that can kick dust in every android handset. It's the 2nd tier 2018 handset and as such doesn't not have the same features as the first tier. And for some people like me, I'm satisfied with a good LCD.

Not the first time apple has done this. The iphone 7 was missing the dual lens of the 7+, except in 2018 the only difference in the two top tier handsets is size.

Yea but look at the price, it’s a joke! Certainly not worth £749

 

[Uofmtiger]

iPhone market is very mature/saturated by now and there are still cheaper brand new iPhones sold by Apple. iPhone XR might be the cheapest of the 2018 iPhone line, but it is certainly not cheap per se for many people, hence there are no crowds of people wanting to change their existing iPhone now. I use iPhone 7, for example, and find it hard to justify an upgrade to 8, XS or XR. For me iPhone is simply a frame for iOS and my existing one does everything I need it to remarkably well.

Above Avalon did an article on the "gray market". It is definitely one avenue people are going because they just want an iPhone better than the one they are getting rid of and places like Ebay have them for a lot less money. It is still people entering their ecosystem, so I am not sure the idea that people are leaving iOS for Android is true.

As you said, the fact that the 7 does what you need, it is hard to justify an upgrade. That means you are still a candidate for Apple services and haven't left the ecosystem. It shows why services are becoming more and more important to Apple. The iPhone is currently approaching the law of diminishing returns from year to year which is pushing off updates longer than it used to. I have no plans to upgrade my 7Plus right now, but I am not leaving the ecosystem, either.

 

[I7guy]

I think Apple needs to put profit and greed aside for a change and just make their products realistically affordable starting prices

iPhone XR - $500 64 GBs of storage
iPhone XS - $650 128 GBs of Storage
iPhone XS Max - $750 128 GBs of Storage

iPad Pro 11 inch WiFi - $500 128 GBs of storage
iPad Pro 12.9 inch WiFi - $650 128 GBs of storage

(cellular models $100) extra

MacBook 256 GBs - $800
MacBook Air 256 GBs $999

MacBook Pro $1200

MacBook Pro 13 with Retina 512 GBs $1399
MacBook Pro 15 with Retina 512 GBs $1799

Apple Watch Series 3 - $200
Apple Watch Series 4 (42 mm) - $300
Apple Watch Series 4 (46 mm) - $350

And this goes for all finishes, whether its stainless steel or space gray; stop with pointless, confusing expensive tiered finishes. Stop with non-sensical editions at over a thousand dollars. No watch bad no matter how premium should go over $100. Its a watch bad, not a lifesaver. The cheaper watch bands should be sold only for $19.99, with special packs containing all colors for $99. The Nike ones should only cost like $24.99.

I think these are reasonable prices Apple could surely make good revenue on yearly.

Stop requiring customers to pay for the logo at these extreme prices. The smartphone, tablet and laptop market are basically saturated.

I could upgrade to everything Apple sells today, but I gouging I believe doesn't make it fair. So, I am keeping my 2015 MBP a little longer, my 2017 iPhone X a little longer, as well as my iPad Pro 2017 and Apple Watch Series 3.

There is a certain amount of the price is the price.

If Apple is off on their demographic information and what the prices should be, they will hit the ground at full speed.

From my own anecdotal market research, I think a good price for the XR is about $350. See how easy that was?

But to be clear, you can afford to upgrade every year, given current prices. But you're not as you are punishing Apple by not upgrading? It seems more as if you are punishing yourself. To each their own.

 

[ottchris]

In Canada the plans are priced much higher if you want a decent discount on the XR/XS, so I picked up two iPhone 8+ instead and saved a ton on plan fees.

 

[groadyho]

I think Apple needs to put profit and greed aside for a change and just make their products realistically affordable starting prices

iPhone XR - $500 64 GBs of storage
iPhone XS - $650 128 GBs of Storage
iPhone XS Max - $750 128 GBs of Storage

iPad Pro 11 inch WiFi - $500 128 GBs of storage
iPad Pro 12.9 inch WiFi - $650 128 GBs of storage

(cellular models $100) extra

MacBook 256 GBs - $800
MacBook Air 256 GBs $999

MacBook Pro $1200

MacBook Pro 13 with Retina 512 GBs $1399
MacBook Pro 15 with Retina 512 GBs $1799

Apple Watch Series 3 - $200
Apple Watch Series 4 (42 mm) - $300
Apple Watch Series 4 (46 mm) - $350

And this goes for all finishes, whether its stainless steel or space gray; stop with pointless, confusing expensive tiered finishes. Stop with non-sensical editions at over a thousand dollars. No watch bad no matter how premium should go over $100. Its a watch bad, not a lifesaver. The cheaper watch bands should be sold only for $19.99, with special packs containing all colors for $99. The Nike ones should only cost like $24.99.

I think these are reasonable prices Apple could surely make good revenue on yearly.

Stop requiring customers to pay for the logo at these extreme prices. The smartphone, tablet and laptop market are basically saturated.

I could upgrade to everything Apple sells today, but I gouging I believe doesn't make it fair. So, I am keeping my 2015 MBP a little longer, my 2017 iPhone X a little longer, as well as my iPad Pro 2017 and Apple Watch Series 3.

If those were truly Apple prices I'd be all in. Sell my droid, sp5, and remaining PC's. Even buy an ATV. All in cash.

 

[kemal]

New killer app that only runs on X models. OR ..... Lower the effing price.

 

[Spizike9]

They should hire me. I’ll tell them to drop their prices either a lot or drop prices a little and add more base storage. Then they will sell like Apple would like.

 

[redheeler]

Seriously? How about actually lowering the price, instead of pretending to lower the price.

 

[timber]

He's not joking.

A screen is only one component of a phone that as an SOC, that can kick dust in every android handset. It's the 2nd tier 2018 handset and as such doesn't not have the same features as the first tier. And for some people like me, I'm satisfied with a good LCD.

Not the first time apple has done this. The iphone 7 was missing the dual lens of the 7+, except in 2018 the only difference in the two top tier handsets is size.

Yeah, but I can get a Galaxy S9 (not really a Samsung fan, just an example) for 500 euros on Amazon and Apple wants 879€ for 64 GB XR.

 

[groadyho]

I am thoroughly convinced that the only reason Apple is selling phones at these numbers since the 7 came out is highly aggressive carrier promotions. I only upgraded to a 7 because a promotion from ATT literally gave it away a few weeks after it launched, and those promos persisted throughout the life of the phone. That's unprecedented. Same thing happened with the 8 and the X, plus copious amounts of buy one get one free promotions.

When you are literally giving away phones, of course it looks like you're selling a lot. They never had to do that before.

You know what's funny about those promotions, I have att as well 12yrs now. If you want the bogo iPhones you have to make payments, you can't pay cash. Where as when I bought our galaxy s9+ bogo att let me pay cash for both. With payments you can never leave and if you trade in every 2 yrs you're basically renting the phone.

 

[jonnyb098]

It’s probably not - but it’s also not a phone which I imagine many X owners are going to move to.

I remember that Apple were *reportedly* surprised by the high demand for the X last year, as they’d expected more of a split between the 8 and the X. If that’s true, it would appear that people prefer to own the flagship models even when there’s a very capable and much cheaper second-tier model such as the XR. The problem is that, for some, the XS is just prohibitively expensive - particularly in the non-US market were import taxes and sales taxes such as VAT (20%) are added.

Indeed. The XR isn't for people coming from an X. Thats just silly. Its for people coming from 3 and 4 year old phones that want a really good phone for under $1000, which it is. The XR is a massive upgrade in ever imaginable way from an iPhone 6, 6S or 7......of which there are millions of users. Theres a reason its their most popular new iPhone. Its a lot of phone for the money FOR PEOPLE WITH OLDER PHONES.

I think there are way too many butt hurt people around here ticked off that Apple didn't make some new Jesus phone for people who have an iPhone X. Thats entirely their problem. Apple has fully admitted they don't expect people to get a new phone every year, hence the XS being the most lackluster S model to be released to date. People whining that they will just keep their iPhone X since Apple sucks and didn't give them enough reason to upgrade. Exactly right. Apple is done giving people a reason to upgrade on a yearly basis as far as features. Those days are over. People are keeping phones for 3 years on average. The gap of how "awesome" this years phone is over last years is quickly narrowing. Apples mission is to sell phones to the tens of millions that are still using 2, 3, 4 year old phones. Not the chronic upgraders. The iPhone 8 and X will still be awesome 3 years from now as will the XR and XS.

The X ended up selling very well because it was "the future" of the smart phone. Premium price yes, but lots of new technology. So its 2018 and the future is now. The standard lineup is XR and XS. People can get premium for a reasonable price (XR) or the Ultra premium for more (XS).

Phones are becoming exactly like cars. To use a car analogy (I'll use American), the XS is like the Lincoln and the XR is the fully loaded Ford. Same engines just slightly nicer trim and materials on the Lincoln. Its seriously that simple now. Phones, like cars, are utilities. Premium is there for those who want it. Everyone will get the best bang for the buck for this model year......in this case, the XR. IF people don't like the reality of the Apple ecosystem they are free to leave.....and then come back in a few years when they realize what a garbage heap the Android phone/software ecosystem is.

 

[LovingTeddy]

Im a little confused on how the XR is overpriced for what it is. Its literally 90 percent of the XS Max for $350 less. It also has the best battery life out of any iPhone including the Max. That $350 gets you a zoom lens and a higher res OLED screen. Most wont see that as worth $350 since Apple has the best LCDs in the business and no one cared for 10 years except nerds (which apple doesn't cater to any more or else they'd never be the most valuable company on the planet). Now ,lets use the 8 plus as the example since the plus size phones are so popular now. The screen is larger than the 8 Plus, gets better battery than the 8 plus, faster than the 8 plus, still does portrait mode like the 8 plus and does smart HDR portrait selfies which the 8 Plus CANNOT do. The only 2 advantages the 8 plus has is that it has a zoom lens and a little higher res screen. Other than that the XR is an improvement in every single way for only $50 more today.

So....again....how exactly is the XR overpriced for what it is??

It is expensive compare with Android counterpart. I can think of few high end Android phone selling less than iPhone XR and offers lot more than XR.

Given iPhone 8 Plus itself is overpriced right now, XR is even more overpriced.

 

[Ramchi]

Next year(2019) without 5G Modem, competing against 5G mobiles with further increased Price, I think the Sales and Marketing team would already start packing their bags looking for their next career move...

 

[one more]

Above Avalon did an article on the "gray market". It is definitely one avenue people are going because they just want an iPhone better than the one they are getting rid of and places like Ebay have them for a lot less money. It is still people entering their ecosystem, so I am not sure the idea that people are leaving iOS for Android is true.

They don’t even need to go via “gray market” - friends & family upgrades and Apple’s own new but more affordable solutions will keep the ecosystem rolling, for as long as people are convinced that it does a better job than Android. If this perception changes (things like security, privacy, fragmentation, etc.), then yes, Apple need to start worrying.

I have just double-checked official Apple iPhone prices in Switzerland (probably the lowest in Europe as the Swiss VAT is 7%) and we have these: the cheapest iPhone XR is CHF 879 = EUR 776, while the cheapest iPhone 7 is CHF 529 = EUR 467. That’s a 309 EUR difference or Animoji tax!

 

[mi7chy]

Sell a properly working product without excessively greedy markup and you won't need marketing.

 

[Nippi2000]

Apple told us the iPhone X was the best selling model in the lineup since release, so it was the best selling.

All investors know unit sales have been flattish for 3 years. The 2015 year was an outlier bc of large screen iPhones. The rising ASP has frankly been incredible and shows the strength of the iPhone, selling MORE units y/y at far higher prices. Pricing power.

They are frankly right that unit sales are no longer relevant and investors should be focused on the business rather than an arbitrary unit sales metric that tends to overshadow incredible results.

You are one of the prime examples why I dislike the direction Apple is heading these days.

All the talk about profits and investors interests, etc. Money talks and nothing else. Just like your repeated, broken record like blathering about fake news. It's soulless drivel.

God I miss the days when Apple was about passion. Not about money.