iPhone Receives Price Cut in China Due to Slow Sales
iPhone sales has been a hot topic for a while now. Rumors began swirling that sales of the new iPhone lineup did not meet expectations. It was almost confirmed when Apple did not reveal iPhone sales figures for Q4 FY’18 , and decided it will not do so for future ones.
Apple recent revised its revenue projections for the quarter that ended in December, 2018. The Cupertino giant cited declining sales in China as the primary reason. Now, Reuters is reporting that Chinese retailers, such as Suning and JD.com, have begun slashing prices on current iPhone models.
iPhone XR has been slashed by 800 yuan ($118) and iPhone 8 by 1,200 yuan ($177) by Suning. The prices on Apple’s official stores remain unchanged which may mean that the price cut is on a distributor level and not ordered by Apple.
However, Apple is advertising 4399 yuan price for iPhone XR and 6599 price for iPhone XS on its website for consumers looking to upgrade their current iPhones.
In a different report, Apple is reportedly looking to cut production for its new iPhone models by 10% for the current quarter.
The writing’s on the wall. If Apple did not witness an increase in iPhone sales – or at least stagnation, in the quarter that saw the launch of the affordable $699 iPhone XR, the situation is not likely to get better. In China, Apple is facing stiff competition from brands like Huawei and Xiaomi. With the increasing price ask and incremental upgrades in return, consumers are less likely to upgrade their phones every year.
About The Author
