Apple might lower the iPhone XR prices, its cheapest iPhone this year, in Japan. A new report from the Wall Street Journal states that the iPhone maker is planning to offer subsidies to Japanese carriers in order to boost iPhone sales in the country. The price cut on Apple’s cheapest iPhone with edge-to-edge display design is said to go into effect as early as next week.
The iPhone XR is priced at $749 in the US and like most other markets, the price is not directly reflected due to bundled carrier contracts. The report states that despite the carrier bundle, the device is being overshadowed by older models like the iPhone 8 in Japan. In order to boost sales of new models, Apple is also said to be restarting production of iPhone X for sale in certain markets.
Soon after the launch of iPhone XR, iPhone XS and iPhone XS Plus, Apple discontinued the iPhone X and reports emerged that the company stopped production of the model altogether. While price cuts are rare in the case of iPhone, it is not unprecedented to see Apple respond to the market scenario.
Apple announced its fiscal quarter earnings early this month where it announced its plans to not reveal unit sales of iPhone going forward. This could be owed to the declining unit sales of iPhone around the world but Apple is compensating for that with an increased average selling price of iPhone models. However, the company discounting the iPhone XR in Japan, one of its biggest market in Asia-Pacific region, shows the signs of weakness in iPhone sales.
The report also states that the new production of iPhone X is mainly because of Apple’s contract requirement with Samsung Display. The Cupertino-based iPhone maker is reportedly required to meet minimum order requirements of OLED display panels as part of its contract with Samsung’s display division.
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Apple is seen to be compensating for sluggish iPhone XS and iPhone XS Max sales by bringing the iPhone X back in sales. This will also allow Apple to use the excessive OLED panels it would have ordered from Samsung and might even work wonders considering iPhone X became really popular in the first year.