Apple could slash prices of the iPhone XR in markets like Japan, and revive production for the older iPhone X, even though that model is no longer sold at the company’s own stores. According to a new report in the Wall Street Journal, lower than expected demand for iPhone XR has prompted Apple to consider a price cut in the Japan mark.
The report says, Apple will offer “subsidies to mobile-network operators in Japan to shore up sales” of the iPhone XR. It adds that Japan’s major wireless carriers will cut the iPhone XR prices as early as next week.
Apple has reportedly cut production for the iPhone XR, iPhone XS and iPhone XS Max, according to an earlier report by WSJ. Coming to the iPhone X, it looks like Apple has resumed production for the device. The report is quoting people in the supply chain.
The reason for revival of iPhone X production: Apple’s deal with Samsung under which it has to buy a certain amount of OLED panels. Thanks to the cut in the iPhone XS and iPhone XR production, Apple needs to make up for it and has decided to do this by reviving production for the older variant.
WSJ is quoting people familiar with the matter on the iPhone X production.
Apple has reportedly slashed production for all three new iPhone variants. An earlier report by WSJ had said that the company’s decision had caused turmoil in the supply chain. In its earnings report for the fourth quarter of 2018, Apple forecast lower-than-expected sales for the Christmas quarter.
Apple CFO Luca Maestri had cautioned that going forward the company would have “uncertainty around supply and demand balance,” and said that the company is facing “some macroeconomic uncertainty, particularly in emerging markets.” The dollar strengthening in markets like India has also impacted sales for Apple’s iPhone, which is priced considerably higher in the market.
Apple analyst Ming Chi-Kuo had said that the company had slashed production for the iPhone XR in light of weaker than expected demand. He put the estimate at 70 million for fourth quarter 2018 till the third quarter 2019 for the iPhone XR.
The Apple analyst said that customers expected a more affordable price for the iPhone XR, especially given that it had a single rear camera.