Apple may have overestimated demand for both the iPhone XR and iPhone XS/XS Max

Apple may have overestimated demand for both the iPhone XR and iPhone XS/XS Max
After initially being predicted to substantially outsell its pricier iPhone XS and XS Max cousins, Apple’s slightly lower-end iPhone XR appears to be disappointing both the company and overly optimistic financial analysts.

Various supply chain sources have hinted at not one, but two massive production cuts lately, with orders canceled at key assemblers and parts makers struggling to keep their businesses afloat.

Believe it or not, things could be even worse than previously thought, according to trusted sources cited by the Wall Street Journal (via Reuters). These anonymous insiders claim Apple has had to reduce manufacturing operations for its entire 2018 iPhone family rather than partially offsetting weak XR demand with better-than-expected XS and XS Max sales, as other analysts and publications purported.

The iPhone XR remains “particularly problematic”, as Apple’s original production plan is reportedly down by “up to a third of the nearly 70 million units some suppliers had been asked to produce between September and February.” But at the same time, the iPhone XS and XS Max are seemingly not generating an enthusiasm that was already forecasted as relatively low.

Of course, we may never know for sure if these bleak new predictions will come true, as the Cupertino-based tech giant no longer intends to report quarterly shipment numbers for either iPhones or iPads.

Then again, it’s probably safe to assume now that decision came as Apple started receiving signals from retailers and customers of lower-than-usual demand for new iPhones over the holiday season. Either way, as long as profit margins don’t collapse, the company will be just fine.

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37 Comments

1. JustFluffy

Posts: 4; Member since: Nov 16, 2018

They actually predicted their sales would go down, with global smartphone sales going down as well. They increased the profit margin this year so that the profits don't go down with the sales.

18. Atechguy0

Posts: 918; Member since: Aug 03, 2018

There demand would have stayed up, but Apple's greed is getting in the way. It's one thing to pay high prices for a smartphone, but it's another to pay for ridiculous repair costs as well. Crack the glass back, and pay more than Apples manufacturing and packaging cost for a new iPhone. People say Apple has great service, but its a moot point when you are charged more than Apple pays to actually build the entire smartphone and all its packaging. It makes it feel like you Apple is holding you down while they have their way with your wallet. I want to screem, rape.

31. Vokilam

Posts: 1096; Member since: Mar 15, 2018

That is a really good post, techie.

2. TheOracle1

Posts: 2038; Member since: May 04, 2015

This is true for the entire smartphone market. But it seems the Xiaomi's and Huawei's etc are also eating into both Samsung and Apple with reasonably priced mid-rangers and very competitive and innovative flagships. I'll wager that it's in Europe and not the US that the damage is being done. Now that I've made a reasonable post, I'll gloat and enjoy the sales decline of the greediest company on earth. Lol

3. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Apple needs to give more than they're giving us. People are just not as excited over a 6.5 inch phones, that doesn't nothing more than the 5.8, except cost more. There's simply nothing to get hyped about, and people are speaking with their wallets. No long lines, no long campouts, no store sellouts, and all 3 available in store fully stocked on the day of release, and since. That should tell us enough right there. It's gotten boring and outperformed Apple.

7. meanestgenius

Posts: 21453; Member since: May 28, 2014

Totally agree. Apple can’t keep charging more while not really giving more and expect people to keep buying the iPhone in the same amounts as before. People are opening their eyes to what other smartphone vendors are providing (features, etc) and they want it, too. Apple can’t expect their name and ecosystem (their ecosystem is the best in the business) to carry them forever while they keep increasing prices without giving enough back in the way of features. As you said, the 6.5 inch iPhone does the exact same thing as the 5.8 inch one does, and costs more. People are getting wise to that, and are either choosing other options, or just not upgrading to the latest iPhone because of this.

15. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Even Samsung is feeling the heat from Hauwei, and the OEM that starts with a X. It's time to deliver more, especially for Apple, cause Samsung does deliver a ton and takes a lotta risks, that we sometimes call gimmicks. Apple keeps giving us the same basic experience, and it's just getting more and more stale. I still like the iPhone, but I not into them like I used to be, and the one I have was actually a surprise gift from my wife. iOS needs a massive makeover, and more killer features that we're not used to. The fastest phone on geek bench, is not impressive, and seems to be the main bragging right along with sales. iOS 13 needs to kill it, or that profit margin crap is gonna shrink up.

36. Venom

Posts: 3110; Member since: Dec 14, 2017

Why are you so afraid of saying the same thing about Samsung? Why not just get to the point and say instead of trying to hide behind bias. Samsung and Apple have been failing recently due to lack of innovation and ridiculous pricing for their products. That's adding to the fact that they removed TouchID and the headphone jack. Samsung hasn't struck gold in a few years only marginally making progression in innovative particularly with the S-Pen, and that's pushing it. You are afraid to admit that your favorite OEM is doing just as bad.

4. ramdroid

Posts: 126; Member since: May 21, 2016

does anyone else keeps getting only iphones reviews in featured videos in every article ?

6. TheOracle1

Posts: 2038; Member since: May 04, 2015

Yep. What do you expect from this site?

9. worldpeace

Posts: 3099; Member since: Apr 15, 2016

They'll do anything to help Apple's sales.

5. redmd

Posts: 1910; Member since: Oct 26, 2011

Does this mean that people don't want to shell out that much cash for a phone? IPhones are just too expensive these days. Even the high end galaxies and mates are just too expensive. I will keep my phone for 2 years more.

20. Nokfan1603

Posts: 54; Member since: Mar 13, 2013

Or buy the Mate 20 Pro in one year for less than 500$. A great phone for a good price. I think, this is what I will do.

8. Nimbus

Posts: 442; Member since: Apr 02, 2018

Reason they are not doing this well because they are not giving software features to their IOS like how microsoft and google keep giving software features to own OS base on user demands and request every yearly,monthly updates and at the same time keep charging high price on their low tiers to high tiers of smartphones range so what you can expect from this company who doesn't care about true and real innovation(don't tell me Face id and Animoji screw that) but only profits.If apple to improve on their close OS ecosytem then they should follow in microsoft foot step just how redmond company keep giving 2 major update every 6 months to close os windows 10 base on user laptop configuration unlike android which oems use android skins for more features and less features in google stock android.One+ only give few not everything.Also Apple has halted the 3.5 jack and no SD card and a notch on it and no Updated iphone SE succesor in line without notch thus has reduce people interest in buying their iphones.

10. basher

Posts: 102; Member since: Sep 20, 2015

Companies can bankrupt with Apple

11. Wazupmrg

Posts: 141; Member since: Apr 10, 2017

We could have told you this a long time ago. Apple innovation, which was already was close to non existent, just gets worse. Meanwhile, Samsung and Huawei are coming out with next gen foldable displays. Apple will soon become the Blackberry of companies.

37. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

I'm a little late to the party on this article... but what Apple lacks in innovation, they make up for in marketing. Rarely is Apple ever actually the first company to field a new product. No, what they do is wait to see what the competition offers, let's them do all the heavy lifting of R&D, and then once they see what's in the consumer space they will tweak it with improvements. Then they advertise it with a catchy trade marked feature.

38. TheOracle1

Posts: 2038; Member since: May 04, 2015

In other words, they don't innovate. Thanks for stating the obvious.

12. Tsepz_GP

Posts: 1134; Member since: Apr 12, 2012

Reminds me of Nokia at their peak. Will be interesting to see where Apple are in the next decade.

13. rouyal

Posts: 1567; Member since: Jan 05, 2018

This is great fandroid bait. They’re coming in, watering mouths, taking it hook line and sinker. The stench of haters is too strong here. I’m out.

17. koioz unregistered

There's a solution to your problem. Just buy a aerospace grade, surgical precisioned, state of the art Liquid retina pill. Lmao.

26. iushnt

Posts: 3060; Member since: Feb 06, 2013

Lmao.

14. bucknassty

Posts: 1305; Member since: Mar 24, 2017

Remember this piece when this year's iphones become the best selling iphones of all time... just like they report EVERY YEAR

16. TheOracle1

Posts: 2038; Member since: May 04, 2015

But they're no longer giving sales numbers. If the numbers were so fantastic they'd be shouting from the rooftops.

21. sissy246

Posts: 7001; Member since: Mar 04, 2015

Yep, that

32. mootu

Posts: 1409; Member since: Mar 16, 2017

The problem with your statement is that iPhone sales have been flat for the last 4 years. The record profits are coming from the increased ASP and services not from increased iPhone sales.

35. bucknassty

Posts: 1305; Member since: Mar 24, 2017

the problem with your statement is that this site wont report that... each year same stuff... 'iphone sales arent what they expecte... *3 months later*... BEST SELLING IPHONE EVER!'

19. midan

Posts: 2575; Member since: Oct 09, 2017

And then Apple announce great holiday quarter, we have heard this same thing so many times already. iPhone sales are very good just wait and see.

22. TheOracle1

Posts: 2038; Member since: May 04, 2015

There's nothing to wait for. They're no longer reporting quarterly sales numbers. They'll report obscene profits as usual and you sheep will do back flips. But constantly raising prices to cover for lower sales is unsustainable and will hurt them badly unless they come up with something new.

23. cmdacos

Posts: 3872; Member since: Nov 01, 2016

When the ultimate fangirl Brianna Wu takes her ipXSM back in favor of her old ipX, you know the update isn't compelling.

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