Sunday, 24 March, 2019

China retailers slash iPhone prices after Apple sales warning

Apple iPhone Xs and iPhone Xs Max Apple is planning to follow up its latest iPhones with a similar trio of new devices in fall 2019
Priscilla Morrison | 13 January, 2019, 11:24

Apple Inc AAPL.O held talks with Samsung Electronics Co Ltd 005930.KS and MediaTek Inc 2454.TW along with existing vendor Intel Corp INTC.O to supply 5G modem chips for 2019 iPhones, according to an Apple executive's testimony at a trial between Qualcomm Inc QCOM.O and the U.S. Federal Trade Commission on Friday. It is likely that the 2019 iPhone XR will gain a secondary telephoto lens like the iPhone XS.

At this point it's not known if retailers are taking a hit to their own profit margins by reducing prices across the board, or if Apple is instead footing the bill by providing incentives directly to the retailers (which are then passed on to the customer).

The price cut ranged from 400 yuan ($59) for most iPhone models to 450 yuan ($66) for the iPhone XR. According to the Journal's report, once again Apple will release three new models of iPhone. One seller had a 256GB version of the iPhone XS Max, Apple's most premium device, for 9,699 yuan ($1,436), much lower than the USA firm's official selling price of 10,999 yuan ($1,628).

As for the successor to the iPhone XR, Apple will continue to use LCD panels for the device.

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The discounting, as steep as $118 for the recently launched 64GB iPhone XR, is the latest sign that Apple's weak holiday sales in China may have extended to the current quarter. While the XR's successor is said to retain the LCD display of the 2018 model, the 2019 XR will reportedly get the dual-lens camera system that is now only found on the iPhone XS series. We are also unsure what this new device will be called - iPhone XRS? iPhone XR 2? iPhone 11R?

Chatter earlier today circulated around the camera and display technology that would be used in this year's new iPhones.

We still have a long way to go before the next-gen iPhones arrive, but it makes sense that Apple will focus on the cameras in the iPhone 11 generation.

Last week, Apple issued its first revenue warning in almost 12 years, sending its shares down 10 percent, their biggest intra-day fall in six years. The smartphones could be revealed by Apple in September, when it regularly shows off its latest new models. Declining sales for lower end models. and the escalating price of higher-end models, caused Apple to restrategize and cut back on their cheaper phones.

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