In the company’s latest earnings call, Apple CEO Tim Cook couldn’t stress the impact of a sales drop in China as the main reason behind his company’s less than stellar performance. In fact, Mr. Cook also gave the reasons behind Apple’s iPhone sales slump in a detailed letter prior to the company’s earnings release. Now, news from China is suggesting that Apple’s iPhone woes might be abating. Take a look below for more details.
Apple’s Problems With The iPhone XR In China Seem To Have Abated As The Company Just Ordered 20 Million Units From Its Supply Chain
Given its size and reputation, any news that involves Apple’s misfortunes is reported far and wide. A recent wave of reporting related to the company stated that its iPhones aren’t selling well. The new iPhone XR was the subject of the majority of such reports, and the device caught this added flask especially since it was hyped to be the ‘low-cost’ solution to Apple’s upgrade problems prior to the company’s 2018 iPhone refresh.
Now we’ve got a report from the Chinese analyst Li Xiuli who believes that Apple’s iPhone sales troubles in China are easing. Li believes that the company’s decision to reduce iPhone XR prices in China has helped it regain some of the sales that it lost to local companies such as Huawei and Xiaomi.
Apple has reduced the price of the iPhone XR by 450RMB, bringing it down to approximately 5900RMB for the 128GB variant. This has significantly reduced the price difference between the iPhone XR and alternatives such as the Huawei Mate 20 Pro. This upward tick in Apple’s sales has resulted in the company placing orders for 20 million iPhones from its supply chain. At the time of its launch, the iPhone XR was expected to entice Apple’s customer base to upgrade from older iPhones.
However, the gadget’s high price point coupled with a clunky build dissuaded users from purchasing it. Apple’s problems in China were worsened by the surrounding economic conditions (read: Tariffs), and the fact that other manufacturers also offered attractive gadgets with lesser prices. As we head to September 2019, it’s unlikely that this sales boost in China will help the company in the long run, as it continues to be trapped by the high-expectations set by itself.
Nevertheless, Apple’s got a strong user base and it offers great features in its ecosystem. Therefore, even if the company’s revenues do take a short term hit, its sales will remain strong; regardless of anything that Wall Street would like you to believe.
Thoughts? Let us know what you think in the comments section below and stay tuned. We’ll keep you updated on the latest.
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