iPhone Sales Growing Following Price Cuts in China

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Feb 1, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Apple is seeing improved iPhone sales in China following some recent price cuts on the iPhone XR, XS, XS Max, and older models that were introduced earlier in January, reports Chinese site Feng.

    Apple dropped iPhone prices for third-party distributors in China on January 10, allowing vendors to purchase iPhones more cheaply and pass those savings on to customers. Apple cut prices on most iPhone models, but the XR saw the biggest discounts.


    Shortly after Apple implemented the pricing cuts, vendors in China started offering discounts on various iPhone models. The XR, for example, was available from JD.com for 6099 yuan ($899), while Suning, an electronics store similar to Best Buy, started selling iPhone XR for 6199 yuan ($914).

    Those prices are more affordable than the iPhone XR from Apple's own online store, where the device is priced starting at 6499 yuan ($958).

    According to Feng, data sourced from Alibaba suggests that iPhone sales on the site have increased by 76 percent in China since January 13. Suning, meanwhile, saw Apple traffic and sales "explode" with the iPhone 8, 8 Plus, and XR in particular seeing purchase boosts. Apple sales from Suning have increased by 83 percent since January 11.

    Apple launched the price cuts after seeing iPhone sales fall significantly in China during the holiday quarter of 2018, leading to lower iPhone revenue than expected. The Cupertino company is hoping sales will soar during Chinese New Year in February, improving overall performance in China.

    Apple is also promoting older iPhone trade-ins and monthly pricing for iPhones in many countries around the world, including the United States, in an effort to boost iPhone upgrade numbers.

    Earlier this week, Apple CEO Tim Cook said that Apple is reevaluating its pricing strategies in some international markets, returning to pricing that's "more commensurate" with what local prices were last year to boost its iPhone sales.

    Cook also said that he does believe Apple's higher prices were a factor in the declining number of iPhone upgrades that led to a weaker holiday quarter. In some international markets, the strength of the U.S. dollar amplified pricing increases.

    Apple is expecting revenue of $55 to $59 billion in the second fiscal quarter of 2019 (first calendar quarter), which is below the $61.1 billion in revenue Apple earned in the second fiscal quarter of 2018. It's not clear if the pricing changes in China and other international markets will be a big enough boost to pull Apple out of its slump going forward, but for the first part of the year, Apple is still expecting lower iPhone sales.

    Article Link: iPhone Sales Growing Following Price Cuts in China
  2. seatton macrumors 6502a


    Nov 7, 2013
    Seattle, WA
    I don't think Tim will learn from this. The new iPhone XI with 3 back cameras will start at 999 for 16GB and 256 GB for 1199.... since nobody wants the 16GB they have to get the more expensive one....
  3. AngerDanger macrumors 68040


    Dec 9, 2008
    AD Avatar Mindblown.gif

    I just… can't imagine why that would work…

    Maybe they actually raised the prices, and that's why sales are improving.

    Why would people would be more likely to buy a phone selling for less?

    I just can't wrap my mind around this…
  4. TComm macrumors member

    Dec 28, 2017
    New York, NY
  5. Baymowe335 macrumors 68040

    Oct 6, 2017
    China needed it. Other markets, did not.

    For all the doubters, Apple is going to execute over time. They have too good of a track record to miss targets, which they did in China due to various factors. They will fix it.
  6. I7guy macrumors P6


    Nov 30, 2013
    Gotta be in it to win it
    I’m thinking of using this promotion to pick up an XR.
  7. keysofanxiety macrumors G3


    Nov 23, 2011
    Don’t be sarcastic AD, Tim might read your post and think the sales are due to the alignment of Jupiter and Saturn instead. :eek:

    It’s the cost, Tim! It’s the cost!
  8. Shalev macrumors member


    Jul 18, 2015
    apple need to bring back the 649 starting price of the iPhone
  9. eeboarder macrumors member


    Jul 29, 2005
    Crazy concept! Hope this gets implemented in the US market.
  10. az431 macrumors 6502a


    Sep 13, 2008
    Portland, OR
    for the purpose of subsidizing the needs of self-entitled millennials?

    Buy the phone you can afford. It's not a constitutional right to own any phone you want.
  11. MacLawyer macrumors demi-god


    Aug 1, 2009
    I'm in the minority here, but I do understand that the price landscape has changed for Apple because carriers have become stingy with subsidies lately.

    That said, what's to prevent Apple from producing a reasonably priced, updated iPhone SE?
  12. EugW macrumors 603


    Jun 18, 2017
    Maybe if Apple cuts the price on the XS Max replacement in 2019 for Canada, I might actually buy one.

    Cuz I skipped it in 2018. Price way too high for a more-than-64-GB model. And no, it doesn't have to be 256 GB. 128 GB is enough for me, but 64 GB is not. The price premium for the more-than-64-GB 2018 XS Max over the more-than-64-GB 2018 XR is 56%. That's just ludicrous, considering the XR is not an inexpensive phone to begin with.

    If Apple doesn't cut the prices this year in North America, I'll probably just keep my 7 Plus another year and then weigh my options again in 2020.
  13. pacmania1982 macrumors 6502a


    Nov 19, 2006
    Birmingham, UK
  14. Eriamjh1138@DAN macrumors 6502a


    Sep 16, 2007
    BFE, MI
    Lower prices and sales increases are a delicate balance for maximizing profit. Go too low, sales peak and you only make so much. Go too high, sales drop and net profits go down. Apple is literally trying to find the sweet spot after making a mistake at the high end.

    The price literally made me wait another year for the first time since 2010. I know I’m upgrading this year because my phone is acting up. The question will be how much will it be?
  15. Gogeta-Blue macrumors regular


    Dec 10, 2018
    ok but who’s buying the iphone, the americans that live in china or the chinese people, that is the million dollar question and just because it went up a little it doesn’t mean that is going to star selling like crazy, there is always up and down in the buying and selling market, nothing new here, maybe there are just a few taking advantage of the price cut, if you really consider that little bit of discount a cut, for me is not much of a discount but some others will see it as a save never the less
  16. Soccertess, Feb 1, 2019
    Last edited: Feb 2, 2019

    Soccertess macrumors 65816

    Oct 19, 2005
    To all you Tim lovers who believe the man is infallible, this is a pretty obvious mistake.

    I agree that hindsite is 20/20, but this isn’t exactly rocket science. It’s pretty obvious to most long time Apple consumers who were used to the Apple premium that the value was not there anymore. Just think how much revenue he lost Apple. Do Angela and Tim still deserve their bonuses?

    All I needed to do was look at the price vs the product to make that determination. No trends, no graph, just common sense.
  17. gwaizai macrumors regular


    Aug 8, 2016
    It's also the beginning of the Chinese or Lunar New Year holidays,
    so people have more money. Usually your employer gives you
    a whole month's salary, kids get red envelopes and are flushed with cash,
    even parents get red envelopes from their prosperous adult children. So everyone is

    Anyway, hopefully Apple will learn something through this and
    will lower prices globally.
  18. EugW macrumors 603


    Jun 18, 2017
    Well, my 7 Plus works fine. I want to upgrade, but I am not paying those ludicrous OLED prices. Luckily I don't have to upgrade this year. The main reason I want to upgrade is for the camera. I couldn't give a chit about OLED in a phone, and I say that as an owner of an OLED TV that I love. I do care about pixel density though, along with that 2X lens, so the XR is not for me. The XS is also a downgrade in some ways from my Plus models. The upgrade that makes any sense for me technology-wise is the XS Max, but the pricing is just stupid high.
  19. cardfan macrumors 68000

    Mar 23, 2012
    Hopefully apple can raise prices a bit more in the US to offset it.
  20. Gogeta-Blue macrumors regular


    Dec 10, 2018
    maybe apple executives and enployees are buying iphone from china to give to friends and relatives to save themselves from the embarrasment, probably even redirecting sales, who knows.
  21. RickInHouston macrumors 65816

    May 14, 2014
  22. Gogeta-Blue macrumors regular


    Dec 10, 2018
    i will say to you what lex luthor told superman, beautiful i couldn’t have said it better myself

  23. MRrainer macrumors 65816

    Aug 8, 2008
    Zurich, Switzerland

    I'm not sure if they want to have another TouchID phone in the lineup. Especially a new one.
    Maybe - maybe - they can shrink the "notch" down to a level where an SE-sized phone would make sense.
    But then, it won't be cheap. Don't forget that.

    How many people would buy a 649 USD SE2 that encompasses even more compromises than the XR?
  24. Relentless Power macrumors Penryn

    Relentless Power

    Jul 12, 2016
    Because they have to believe there is a market for the SE. They tried that with the SE in 2016 for almost three years it was offered, before it was discontinued. (The SE probably wasn’t generating enough revenue) The reality is, the general consumer wants a larger phone and this has been the growing trend for years. The SE has a place in Apple’s line up, but they seemingly are not Under the impression it needs to be revamped at this point, but they need to broaden their spectrum. Consumers like diversity and hopefully Apple doesn’t lose that focus moving forward.

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