Apple is planning to subsidize the price of the iPhone XR for mobile carriers in Japan in an effort to boost sales, according to the WSJ. This follows reports that Apple has cut production of all three new iPhone models.
Major wireless carriers in Japan plan to cut iPhone XR prices as early as next week, people with direct knowledge of the plan said, without giving details of the extent of the cut. Japan is one of the most lucrative markets for Apple, which has a dominant 46.7% share of the smartphone market, according to a survey conducted by MMD Labo from July 31 to Aug. 1.
In the past, Apple has used marketing dollars to discount iPhone models and manage inventory; however, a price cut on such a new device is rare for Apple and smartphone makers in general.
Some analysts now believe that weaker than expected demand for the iPhone XR may be similar to what happened with the low-cost iPhone 5c in 2013 which saw an increase in sales the year after its release.
In Japan, the iPhone 8 is still very popular due to its lower price point and the WSJ reports that Apple has restarted production of the iPhone X, possibly due to a combination of demand for the older OLED device and its production contracts with Samsung.
People involved in the supply chain said the resumption of the X is due in part to Apple’s contract with Samsung SDI Co. , a major provider of iPhone X’s organic-light emitting diode display, or OLED, panels. Apple needs to buy a certain amount of the panels from the South Korean maker, and given the cut in XS and XS Max, Apple is trying to fill the gap with the old device, they said.
More details in the full report below...
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Major wireless carriers in Japan plan to cut iPhone XR prices as early as next week, people with direct knowledge of the plan said, without giving details of the extent of the cut. Japan is one of the most lucrative markets for Apple, which has a dominant 46.7% share of the smartphone market, according to a survey conducted by MMD Labo from July 31 to Aug. 1.
In the past, Apple has used marketing dollars to discount iPhone models and manage inventory; however, a price cut on such a new device is rare for Apple and smartphone makers in general.
Some analysts now believe that weaker than expected demand for the iPhone XR may be similar to what happened with the low-cost iPhone 5c in 2013 which saw an increase in sales the year after its release.
In Japan, the iPhone 8 is still very popular due to its lower price point and the WSJ reports that Apple has restarted production of the iPhone X, possibly due to a combination of demand for the older OLED device and its production contracts with Samsung.
People involved in the supply chain said the resumption of the X is due in part to Apple’s contract with Samsung SDI Co. , a major provider of iPhone X’s organic-light emitting diode display, or OLED, panels. Apple needs to buy a certain amount of the panels from the South Korean maker, and given the cut in XS and XS Max, Apple is trying to fill the gap with the old device, they said.
More details in the full report below...
Read More