Apple's iPhone XR trouble spreads to more and more regions, production forecasts continue to drop

Apple's iPhone XR trouble spreads to more and more regions, production forecasts continue to drop
Did analysts have unrealistic expectations from a new iPhone model that’s inferior to the XS duo in a number of big ways or is Apple truly going through an unusually rough patch? A couple of new reports appear to essentially confirm a combination of factors for the iPhone XR’s failure to generate the initially forecasted enthusiasm.

First and foremost, it seems both Apple and industry pundits may have misjudged what consumers consider to be a reasonably priced handset. The iPhone XR still has the potential to be a global phenomenon... at a discount, noticeably boosting its sales figures in China during the big Singles’ Day shopping event recently.

That was primarily because many local e-tailers shaved anywhere between 10 and 15 percent off the device’s usual price, but it’s obviously not enough to boost the overall production predictions of analysts like Rosenblatt’s Jun Zhang.

Meanwhile, Apple is reportedly planning to offer subsidies to Japanese carriers to lower the iPhone XR price in the region due largely to the enduring success of the... iPhone 8. That sounds particularly distressing as the Cupertino-based tech giant was never able to crack the Chinese market while completely dominating Japan.

If the iPhone 8 is still popular around those parts, the sales domination is unlikely to end anytime soon, but profits could take a significant hit. On a similar note, Apple might be looking to bring the iPhone X back to certain markets after discontinuing the 2017 “all-screen” model on the heels of the XS, XS Max, and XR announcement. 

iPhone X production should be restarted soon, according to inside sources, while only 32 million iPhone XR units may need to be manufactured by the end of the year with an eye towards selling 74 million of those bad boys overall, down from an initial goal of between 90 and 95 million units. So, yeah, analysts definitely overestimated this LCD device, but most likely, so did Apple.

Related phones

iPhone XR
  • Display 6.1" 828 x 1792 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A12 Bionic, Hexa-core, 2490 MHz
  • Storage 64 GB
  • Battery 2942 mAh(25h talk time)

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53 Comments

1. scarface21173

Posts: 700; Member since: Aug 17, 2014

In the uk its a $1000, people are very tech savy these days. They know they can buy better spec phones for half the price. Its just way to expensive for what it is.

10. hjl2345

Posts: 90; Member since: Aug 11, 2018

I kinda think that Apple reached a tipping point in their price point. It's somewhat ironic that more users are buying the iPhone 8 series than the new iPhones. And I really can't blame them. The XS series seems too high of a price to justify compared to other S series iterations. A slightly better camera, processor and...that seems about it. Sure the whole NPU and the 2 billion transistors all sound cool and all, but does that all relate to something that the customer can really feel in their everyday use?

49. TheOracle1

Posts: 2340; Member since: May 04, 2015

The US market is what's sustaining the iPhone these days. The alternatives in other regions are numerous and compelling. US consumers simply don't have the choices other regions do and when that changes Apple will suffer. https://www.gsmarena.com/samsung_huawei_and_apple_shipped_the_most_phones_in_q3_of_2018-news-34360.php

2. Peaceboy

Posts: 640; Member since: Oct 11, 2018

What could have been worse in selling 74 million units?

3. Ali888

Posts: 100; Member since: Apr 13, 2018

In my country it costs 1450!!! It's priced the same, or higher, as the Galaxy note9 here. (This is southern Africa btw)

54. kanagadeepan

Posts: 1271; Member since: Jan 24, 2012

In India, Note 9 is lot cheaper than Xr...

4. whatev

Posts: 2333; Member since: Oct 28, 2015

Well, if this happens to be true (which every year turns to be false), I think apple needed this little spank so they think twice about releasing or not an iPhone SE 2 with lower price than the current lineup

5. miketer

Posts: 531; Member since: Apr 02, 2015

This is proof that the iPhone is looked upon as a fashion brand like Gucci, Armani, etc. Just like the clothing brand, people will either flash the original in their apparel, or buy a knock off from the market. People will never buy an original fashion branded item that's marketed as the 2nd best for the people who can't afford the top of the line. On the contrary, even with those big fashion houses, there's nothing like 2 ranges of clothing or accessories, even if the price of a particular Gucci bag might be a 1000 US and an other 750. The 750 USD item is never marketed as the 2nd best. The XR range is marketed as the 2nd best to the XS series and that's not good for the brand conscious. This clearly shows that the common Man is not using the iPhone for it's capabilities or simplicity or whatever. The common man is using it for it's brand value. No wonder there's stories of kidneys been sold for it. The XR will not give that brand value for the common man nor the style statement to the rich man.

8. rouyal

Posts: 1583; Member since: Jan 05, 2018

Why do you keep trying to disguise yourself with new usernames? It’s creepy AF. And you are looking way to deep into the situation, putting your own Apple hate bias in there to draw a conclusion.

11. bokimaricu

Posts: 89; Member since: Dec 21, 2013

Well he is right, kind of. It doesn't make sense to buy a $1000 Gucci bag because you can find a similar bag with the same materials for 10 times less. The same applies to the phone industry - Apple has a good OS, but the hardware is more or less the same as some phones that cost 3 or 4 times less. Repair costs are 5 times bigger, doesn't come with presumed essentials like fast charging, dongles and whatnot, but there's the Apple hype that never dies and a lot of people only care about the Apple logo. I can respect the people that actually use all the resources that the Apple ecosystem gives you, but those that just have it for showing off i really can't. And there is no reason anyone should support a company that inflates it's prices year after year without apparent reason to do so. If you like overpaying for your stuff - good for you.

14. rouyal

Posts: 1583; Member since: Jan 05, 2018

No, his post is speculation based on a heavy dose of bias. The only thing to take away from this article is that the forecasts were TOO optimistic for sales, it doesn’t mean that sales are bad.

41. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

What? Apple usually increases production for rhe holidays and now for 3 holidays in a row, they are decreasing producrion and you think its only analysts forecasting too high???? Hahahaha. Go with that. People here claimed rhe XR would kickstart that made up supercycle baloney. The sales are bad because the price is frikking crazy. If Samsung doesnt sell the S9 or Note 9, they can get higher sales on other models. Apples otyer models wont make them much money and so they stand to have lower ASP, do to higher sales of cheaper options. The XR was a complete waste of money and time and the other 2 models are just simply priced out of reach of even more people. People have awaken and God bless them for finally doing so. Hopefully Samsung will get a wake up too with S9 sells being lower and Note sells too. The Note should still be no more than the same $850/900 the 7 was. But at least with Android, when i decide i dont want to pay $1000 foe a phone, i have some veey good options to choose from. I dont with Apple. This is where real choice matters. The iPhone is over $2000USD in many countries.

13. iushnt

Posts: 3126; Member since: Feb 06, 2013

@rouyal His post seems to make sense in a way!!

40. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

Haha. Yes. Apple is a brand like Nike, Sony and the ones you mentioned. In many countries, having an iPhone means you are richer than most. But sorry bruh, rhwy arw not the majority. I have gotten many of my inlaws and their familiy to stop buying iPhones and getting Samsung instead. My qife got her son for his college graduarion a Note 8. For $700 she got a much better phone than what the XR is and that is a fact. Apple makes all rhis money. But they could make more money if rhey actually gave tou rhe quality for what they are charging. Amd aince these Chinese oems are even passing Apple is a telltell sign if Apple becoming even more obsure

6. cloud1704

Posts: 6; Member since: Feb 27, 2014

In Malaysia, iPhone XR is more expensive than Note9 and Mate 20 pro.

9. darkkjedii

Posts: 31328; Member since: Feb 05, 2011

By any other means, this is great, but for Apple it's poor. These new iPhones just lack a wow factor, and any killer innovative new features. Just a bigger screen on the Max, and more color options on the XR. People are starting to speak with their wallets Apple...pay attention... Huawei looms.

15. rouyal

Posts: 1583; Member since: Jan 05, 2018

Huawei is a threat to Samsung and other Chinese android brands, not Apple. You think someone is going to drop Apple for a Chinese knock off brand? C’mon, dude.

18. darkkjedii

Posts: 31328; Member since: Feb 05, 2011

Wallets are speaking.

21. rouyal

Posts: 1583; Member since: Jan 05, 2018

That’s your imagination speaking.

28. darkkjedii

Posts: 31328; Member since: Feb 05, 2011

Wallets are speaking.

27. meanestgenius

Posts: 22291; Member since: May 28, 2014

Exactly. For example, I left the iPhone for a high end Huawei Phone, and not only does it provide me with a great experience, but it's packed with features that I love. Apple needs to step it up. They can't expect people to stick with them indefinitely without them bringing that "wow" factor to the table.

30. darkkjedii

Posts: 31328; Member since: Feb 05, 2011

I just don't get why Apple won't really give some good features, and make the phones more interesting. I'm using my Max less and less, and am thinking about selling it.

35. meanestgenius

Posts: 22291; Member since: May 28, 2014

I agree. I wanted to stay with the iPhone as my daily smartphone driver so much, but I found that I was missing the features that I had grown used to using with Android. Once I got the Mate 10 Pro, it was a wrap, lol.

48. darkkjedii

Posts: 31328; Member since: Feb 05, 2011

Huawei's Mate 20 Pro is in the running for phone of the year, and won it on Mr. Mobile's channel.

50. meanestgenius

Posts: 22291; Member since: May 28, 2014

That’s the next Huawei smartphone I pick up soon. I just took advantage of the Amazon Black Friday deal and ordered a smartphone from Huawei's sub-brand, Honor. I ordered the Honor View 10. At $349 for a smartphone that’s running on the same Kirin 970 in the Mate 10 Pro, it was a no-brainer to me.

52. darkkjedii

Posts: 31328; Member since: Feb 05, 2011

I'm really thinking about buying one. I have a Note 9, and Max right now, and have never owned 3 phones at once, but I might pull the trigger on one. My main reason for keeping am iPhone around, is the hide amount of vested content in iOS, having used iOS since 07 when it was iPhone OS. I'm gonna look deeply into a 20 Pro, and find a good deal.

53. meanestgenius

Posts: 22291; Member since: May 28, 2014

I've been a fan of having multiple smartphones at once. I currently have a Mate 10 Pro, BlackBerry KEYᵒⁿᵉ all Black Edition, a Nokia 6, 6.1 and 7.1, and I still have my BlackBerry Passport and BlackBerry PRIV. The Honor View 10 will make s nice edition, and I'm definitely looking at the Huawei Mate 20 Pro and the Nokia 9. I have my iPad Pro 9.7 inch because I'm still a fan of iOS, but Apple is not giving enough in the way of features to have me use iOS as my daily smartphone driver. I only have 2 cellphone lines, with one being data only, but I do get to enjoy using 2 at a time.

51. almostdone

Posts: 449; Member since: Sep 25, 2012

I think Apple believes their customers will stick with them regardless so they get away with giving tiny incremental improvements and maximizing profits. Why innovate and offer more features when they have been getting away with it? Finally some iFans are waking up to the fact.

33. sissy246

Posts: 7124; Member since: Mar 04, 2015

Huawei has already past apple and is now #2. They put apple down to #3.

42. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

Outside the US? Most definitely. I guwss you arw blind to fact anither Android OEM sells morw phones than Apple. That means those people are not buying iPhones even if they had one before. Just because those brwnds use Android and dont dorectjy compete, doesnt mean Apple sales dont suffee from it. Because then that would make you a biased fanboy. Because people go back and forth between Apple and Samsung. Many own both. Since i have an iPad i dont want an iPhone. But i do like rhe XS Max. But im not willing to pay $1000 for onw phone. Especially after i got 2 Note 9 for the price of one.

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