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Why Apple Is Making iPhone XR Cheaper in Japan

The indicator of Product Performance

Apple is reportedly making plans to assist its wireless carrier partners in subsidizing the costs of reducing the price at which iPhone XR is sold in Japan. That is the most recent signal that the recently launched iPhone XR isn’t performing as expected.

Earlier in the month, a media outlet reported that the company also instructed the suppliers to cancel the plans in order to increase the production of the phone. That was also indicative of the fact that the XR isn’t performing up to expectation.

Apple’s decision to discount the price of iPhone XR is a sign that the product isn’t performing as projected

This iPhone XR is deemed the most affordable out of the 3 iPhones that Apple launched earlier this year. The company brought a lot of features to light in its iPhone XS and XS Max, including a large display and also Face ID support. However, reports have it that the Japan customers are still going for the iPhone 8 which was released last year.

Although, one has to bear in mind that seeing a lot of discounted phones in the period leading up to the holiday season is quite common. Other manufacturers including Google and Samsung also discount their phones. Also, their carriers from time to time have made bargains offer available to their customers in America in a bid to increase sales. For Apple, the holiday quarter most times is dominated by the sale of iPhone. In 2017’s holiday quarter, Apple sold about 77.3 million iPhones. It, however, announced earlier in the month that it won’t make available the total number of iPhone units it sells. This announcement is coming less than one month after it released its iPhone XR.

Commencement Of Discount Offers

According to sources familiar with the plans, the cuts by the primary wireless carriers for the company in Japan is expected to start as early as this coming week. Japan has a spot on the list of Apple’s highly lucrative markets. It accounted for 46.7 percent of the smartphone market in Japan in a survey conducted between July 31 and August 1.

The discount plan is expected to kick off very soon in Japan

The phone is available all across the Apple stores located in Japan and starts from $750. However, the pricing of carriers is deemed more opaque since the phones have data plans bundled on them. It is unknown whether Apple has plans to make a program like that available in other regions. The company has declined to pass any comment on the issue.

Common Strategy

In times past, Apple made use of marketing dollars to discount select iPhone models and also for sales. The company reportedly sees it as a way of managing inventory according to those who have knowledge about production and sales tactics.

One common sales strategy used by Apple in the past is discounting select iPhone models

One of the people familiar with the operation said during iPhone 6s cycle, the company reduced production on a particular model and also offered carriers and retailers discounts so that could help them in the reduction of excess inventory. The source further added that whenever Apple wanted to extend discounts, it does so on select phones that are designed for select markets. That is because doing that has lesser costs than having them reconfigure the phone to be resold in a different market.

According to a top official at one wireless operator who is in charge of sales monitoring, reduction of price within one month of release isn’t rare only for Apple but also for makers of smartphones generally.

Users’ Attitude Towards iPhone XR

According to analysts, the demand for this iPhone XR was weaker than expected and that could be a reflection of what the company recorded in 2013 with its iPhone 5c. Reportedly, XS and also XS Max models that are higher priced appear to be more appealing to the early adopters of tech and they are the ones who in a way influence people’s attitude to newly released iPhones.

Early adopters of tech do not particularly find the iPhone XR appealing and that has influenced the attitude of others

Some consumers in japan’s are of the opinion that even though the XR has a lower price than the XS, they still consider it to be too high a price to pray for the things they have to sacrifice. That includes the number of lenses its camera has, display quality and also a slower speed for data transmission. iPhone 8 has maintained popularity in the country for people looking for an affordable Apple phone. That is because the phone is cheaper than XR and has also reminded available upon the release of XS and XS Max.

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