On last Thursday, Wall Street Journal quoting people familiar with the matter, unveiled the Apple’s next move of cutting prices of its iPhone XR in Japan because of the lower than expected sales. Apple, in a very short period of less than a month time period, has been offering subsidies to the network operators to boost the declining sales of its iPhone XR which is the cheapest of its newly released models.
The subsidy offering by Apple in Japanese market came after the sluggish sales of iPhone XR which Apple was not expected to be and earlier it has also deeply cutted the production of iPhone XR followed by reducing order from some component provider and also announced an unexpectedly lower forecast for the holiday quarter this year. The network-operators in Japan will reportedly be offering iPhone XR on lowered prices by the next week.
Eventually Apple is offering the discount to elevate the sales of iPhone XR in Japan to which consumers are less enthusiastic of because of the less features than that of available in the other two new models iPhone XS and iPhone XS Max and due to its price which is higher than the price of still popular iPhone 8.
In fiscal-fourth quarter this year, Japan with its share of $5.16 billion to the total revenue of $62.9 billion and growth rate of 34 percent remained one of the biggest markets for the Apple and year-over-year revenue growth from Japan is also higher than any other region of the Apple.
To fill the gap of lowered iPhone XR sale, Apple has reportedly been re-started the production of iPhone X, sale of which had been discontinued at Apple’ Stores in Japan previously.
Whether Apple, to carriers in U.S. and other markets, will offer such lower prices and similar subsidies, is a question to which answer is not yet known.