Apple’s iPhone XR Trouble Spreads to More Regions; Production Forecasts May Drop

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Nov 22
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The iPhone XR was touted as this year’s ‘budget’ option for those who do not have upwards of a thousand dollars to dish out for the iPhone XS and XS Max. However, it appears that Apple’s 2018 ‘budget’ offering might end up as a damp squib. New reports that have surfaced online appear to confirm a combination of factors for the iPhone XR’s failure to generate the initially forecasted enthusiasm.

It seems both Apple and industry pundits may have misjudged what consumers consider to be a reasonably priced handset. The iPhone XR still has the potential to sell, but not without discounts. During the big Singles’ Day shopping event held at China recently, the iPhone’s XR’s sales numbers did see a rise primarily because many local dealers gave anywhere between 10 and per content of the device’s usual price.

iphone-xr-2-8Related iPhone XR Has Slumped in Demand, Forcing Famed Apple Analyst to Reduce First Quarter Sales Forecast by 20%

Apple likely to tie up with carriers in several regions

Apple is reportedly planning to offer subsidies to several carriers to lower the iPhone XR price in regions where the iPhone 8 is popular. If the iPhone 8 is still popular, they’ll continue to sell, which, in turn, will directly eat into iPhone XR sales. Apple might also be looking to bring the iPhone X back to certain markets after discontinuing it after the release of its successors namely the iPhone XS and XS Max.

According to inside sources, iPhone X production should be restarted soon. Reports state that only 32 million iPhone XR units may need to be manufactured by the end of the year to meet the total target of 74 million units. It is worth noting that the number is well below the initial target of between 90 and 95 million units. It is clear that analysts and Apple overestimated just how many iPhone XRs they could sell. Shaving off a few dollars here and there might not be able to remedy the situation, and a massive price drop will be a slap in the face of people who paid full price.

Source: Phonearena

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