iPhone Sales Growing Following Price Cuts in China

[EssModelsRule]

This is just the initial wave of buyers who were on the fence before the price cuts. Not sure this signals a sustainable uptick in sales. And the Huawei executive thing is getting uglier too; more informal Apple boycotts in China coming?

The decision to keep more consistent pricing for each market (taking out exchange rate factor) probably eliminates the chance for price cuts in the US this year. They should’ve been $650 XR, $900 XS and $1k Max last year but now the US sales will be more important to Apple’s hardware margins.

 

[deebinem]

UPDATE: Nevermind. Poor attempt at humor. Carry on.

 

[EssModelsRule]

UPDATE: Nevermind. Poor attempt at humor. Carry on.

I chuckled.

 

[LovingTeddy]

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?

Profit Margin?

 

[deebinem]

I chuckled.

Thanks!

I was feeling that my snark, after a long work week, may not have been appreciated as such by the one I quoted. My brain is frazzled but maybe Dad jokes are all I have left?

 

[ryanwarsaw]

The prices are like the wall. You can call it anything but over priced. Okay let's call it a dollar problem. I can live with that as long as they take action which they have. I hope Apple doesn't have any future "dollar" problems.

 

[ronno]

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.

Yes, that, plus the prices have doubled

 

[LinusR]

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 use 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?

People have been claiming Apple sales would dip for years now -- they have been wrong every single year until now. We all knew that sales are bounded above, so all those sceptics were bound to be right some day. Granted, that day has come now, but claiming it's just common sense that led you to that conclusion is ridiculous -- it was sheer luck.

 

[m4mario]

Chinese import taxes and Indian import taxes are a serious problem for consumers.
$749 in US vs $958 in China. Are you kidding me?

 

[currentinterest]

The “lowered” price of the XR is still much higher than what it is in the US (USD $899 vs. $749). It is interesting purchasing has increased so dramatically at that high of price. It does seem the Chinese market will support quite a high price point for a premium phone.

 

[lec0rsaire]

I will never understand why some people just have to buy a new iPhone every year. Every 2-3 years makes sense but every year? I guess they just can’t stand being seen with an older model in public.
[doublepost=1549061160][/doublepost]

The “lowered” price of the XR is still much higher than what it is in the US (USD $899 vs. $749). It is interesting purchasing has increased so dramatically at that high of price. It does seem the Chinese market will support quite a high price point for a premium phone.

It’s the Apple logo on the phone. That logo is a symbol of prestige. It says,”I have more money than you.” Having the best is very important to the Chinese market. Keep in mind that this is a country that only recently has been able to afford luxury goods and in China and India the iPhone is a luxury phone.

 

[hiroden]

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.

I am on the same page as you. I'll stay my iPhone X till 2020 if the iPhone 11 is reasonably priced or is not a killer iPhone. The iPhone XS 256 GB should not be $1,589...

 

[alexnyc8]

People have been claiming Apple sales would dip for years now -- they have been wrong every single year until now. We all knew that sales are bounded above, so all those sceptics were bound to be right some day. Granted, that day has come now, but claiming it's just common sense that led you to that conclusion is ridiculous -- it was sheer luck.

it happened as soon as central banks slowed down the money print and the illusion of prosperity started to decelerate very quickly. very few people can afford these phones without access to cheap credit and that $60 monthly payment is what broke the camels back.

 

[femike]

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.

The thing is that profit margins on the smaller phones, are significantly less than larger more expensive phones. If Apple can steer customers to buy larger phones which are more profitable, they will, and they have. It all about the money.

 

[KPandian1]

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.

Here we go again - the PR department's spokesman for Apple.

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.

Why are you beating up the millennial generation? The usual stingy ones are the much older ones, remembering "the good old days" and reminding us how everything is so expensive today. There is fair share of whiners in all generations, people who buy things they can't afford by stretching a bit, and others who prefer to stand outside and just complain about a phone that they would never ever buy no matter if they can afford the bauble.
[doublepost=1549062026][/doublepost]

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.

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).​

The months of January and February are the November, December equivalent for the Chinese in spending, as the New Year for their calendar is in February, and they are more extravagant with their celebrations.

 

[Baymowe335]

Here we go again - the PR department's spokesman for Apple.



Why are you beating up the millennial generation? The usual stingy ones are the much older ones, remembering "the good old days" and reminding us how everything is so expensive today. There is fair share of whiners in all generations, people who buy things they can't afford by stretching a bit, and others who prefer to stand outside and just complain about a phone that they would never ever buy no matter if they can afford the bauble.
[doublepost=1549062026][/doublepost]

The months of January and February are the November, December equivalent for the Chinese in spending, as the New Year for their calendar is in February, and they are more extravagant with their celebrations.

You're here to balance out the sky is falling other side. Just be sure to bring facts.

 

[PickUrPoison]

Yes, that, plus the prices have doubled

Don’t be ridiculous.

The XS is the same price as the 2017 X, and the X sold very well. The XS Max is only $100 more, which is a very nominal surcharge for the larger display. At $749, the 6.1” XR is priced exactly between the 2017 iPhone 8/8 Plus pricing of $699/$799.

In addition, the 128GB XR at $799 is a sweet spot for many. With the 8, if 64GB was too small, the only option was the $849 256GB.

 

[ryanwarsaw]

The “lowered” price of the XR is still much higher than what it is in the US (USD $899 vs. $749). It is interesting purchasing has increased so dramatically at that high of price. It does seem the Chinese market will support quite a high price point for a premium phone.

They didn't lower the price they adjusted the dollar.

 

[and 1989 others]

That said, what's to prevent Apple from producing a reasonably priced, updated iPhone SE?

I've had a 3G, 4, 6, 6s, 8 and X.

Out of all of them the, 4's form factor was my all time favourite and if they released another SE in that form factor, next year I WOULD get one. And hopefully at a reasonable price. Not over £1000.

 

[avtella]

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.

https://hbr.org/2016/08/millennials-are-actually-workaholics-according-to-research

Then again every generation probably thinks the one that came after them are worse.... People always feel they are the center and irreplaceable .

Also I’m not sure what entitlement has to with adjusting prices based on the market.

Sales wise they still did pretty well but there is also the fact that people are keeping phones for longer and the real world usage difference for a lot of people between lower and upper end devices is not as stark as it was many years ago. The overall market is starting to stagnate so with all that, the current pricing is isn’t helping as either.

 

[hagjohn]

No ****!

 

[kikyuu]

Chinese import taxes and Indian import taxes are a serious problem for consumers.
$749 in US vs $958 in China. Are you kidding me?

In China, prices listed is not pre-tax like US (so sales tax etc. is also included). That being said, the ~20% value-added tax is still horrible.

 

[MacDanF]

I like it, American customers will pay through the nose to keep Apple’s profit up and we, the rest of the world gets discounts. While still not cheap we get a little bit more realistic price.

 

[Momof2.1107]

I am on the same page as you. I'll stay my iPhone X till 2020 if the iPhone 11 is reasonably priced or is not a killer iPhone. The iPhone XS 256 GB should not be $1,589...

Those who upgrade every year do so more than likely for the incremental upgrades that come with each phone. That’s what spurred me to upgraded every year until I got the X in 2017. I didn’t upgrade last year for reasons other than price. I don’t mind the price so it don’t bother me. I will be upgrading to the XS Max this month and upgrade again in September. After that I will more than likely remain on a 2 year upgrade cycle.

 

[Squirrelxb]

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....

iPhone Xi? Good pun