The iPhone XR, that budget-friendly variant that most saw as the logical Apple phone to buy has lived up to its billing. The said device ended up topping sales in the US market, shaming the higher end iPhone XS and iPhone XS Max.
This development is hardly surprising. Apple outrageously priced the iPhone XS and XS Max, a factor that made consumers think twice. Some ended up sticking with their current phone or paying more attention to the cheaper alternative, that of which was the iPhone XR, Slash Gear said.
However, there are little things to consider. One is that a consumer research used only a small sample of US customers in the last quarter although the logic behind this phenomena really needs to elaboration. The fact remains that phone buyers have now grown wiser and would prefer to dish cash starting at $749 rather than $999 for the iPhone XS, Tech Radar said.
Overall, it is really more about the pricing standpoint by Apple which has rocked their boat. The Cupertino company has been having issues with iPhone sales over in China, a reason why their revenue forecasts are being reduced.
Earlier this month, the New York Times pointed out how Apple had to lower its revenue expectations for the first time in 16 years due to poor iPhone sales in China. And while the governing conditions over China were singled out as a reason, the fact remains that people there are doing more wise spending and do have access to other high-end and cheaper phones.
“The iPhone is something that everyone knows and buys, and if people aren’t buying it, then that’s a pretty good sign they’re having a hard time," said Mark Zandi, chief economist at Moody’s Analytics.
Price cuts have been suggested and it remains to be seen if Apple would do just that. But it seems that in some regions such as Japan, such is happening.
After NTT Docomo announced a $100 price off last November, another Japanese carrier (SoftBank) has done something similar. Softbank announced that it is also cutting the iPhone XR price for about the same amount of $100, something that will take effect starting Jan. 30. Customers who would avail of it together with a two-year plan can get it at a cheaper price of 450 YEN per month, 9 to 5 Mac said.
It seems Apple has authorized the price cuts due to lower-than-expected sales. In Japan, the iPhone 8 remains a preferred device, particularly because it is cheaper.
