Apple took an unprecedented step and decided to resume production of older models of the iPhone due to low sales of the new iPhone XS, which did not meet management’s expectations. In this earlier “Apple” the brand has reduced production of all three iPhone models sample 2018, which suggests that the company Tim cook isn’t going well.
New iPhones do not need anyone
Apple for the first time in the history of sales of iPhones stopped selling the iPhone X as soon as fall 2018 appeared on the shelves of his successor, the iPhone XS. Thus the head of the company Tim cook had intended to switch the attention of buyers to the more modern and more expensive gadget. This move was unprecedented as earlier iPhones from previous versions remained in the stores along with the newer models, giving users the ability to buy last year’s device at a better price.
Unfortunately, this experiment was eventually abandoned. According to The Wall Street Journal, Apple resumes production of iPhone X due to low demand for the model XS and XS Max, which was first presented in September of this year. Therefore, the company intends to recoup its losses.
However, presumably the reason lies not only in the deceived expectations. The fact that Apple signed a contract with Samsung, which is the largest manufacturer of OLED displays.
As sales of the iPhone XS iPhone XS Max equipped with a screen, do not show the best results, Apple had to go back to the release of the iPhone X, in order to comply with the terms of the contract with the South Korean manufacturer.
The publication reports that production of the iPhone X will cost Apple less than a new model. On the other hand, the cost from the gadget in the market is lower than that of his successors, which, of course, will affect the financial performance of “Apple”.
“Back to basics” in connection with the re-issue of the iPhone X is not the first disturbing call for Apple. Last week it became known that the company has cut orders for the production of all three new smartphones — iPhone XS iPhone XS iPhone Max and XR in the difficulties of forecasting demand for gadgets.
Especially sharp was cutting iPhone orders XR — the company has reduced production plans for the low-end of the new model at a third of the originally planned 70 million devices. When such a situation occurs for the third time since the announcement of the gadget. In addition, the price of the iPhone XR in Japan was significantly reduced to spur sales.
With this announcement, suppliers of parts for Apple has lowered its forecasts of quarterly financial results, which had an immediate impact on their capitalization.
In addition, Apple CFO Luca Maestri said that the company intends to hide statistics on the volume of sales of three new models of the iPhone, stating that the data are not of interest — it is much more important, according to Maestri, the ultimate revenue and profit. The experts considered that this step is dictated by the low interest in new gadgets that could adversely affect the company’s reputation.
In September of 2018 during the annual Apple presentation was presented with three iPhone — iPhone XS iPhone XS iPhone Max and XR. Despite the fact that “Apple” novelties every year attract the attention of users around the world, the Russians began to lose interest in new gadgets.
As reported “Газете.Ru” in a press-service “Yula”, the interest of the citizens to Apple gadgets has fallen dramatically in 2017, the next day after the presentation, the number of search queries that mention iPhone X grew more than 30 times. In 2018 the number of requests has increased “only” two times, which means that the hype around new products Apple has declined 15 times.
Experts believe that the low sales of new iPhones may be the result of the secondary device itself.
The fact that the iPhone XS iPhone XS and Max are in fact only superior and more expensive versions of last year’s iPhone X what people do not rush to replace their smartphones because they do not see in the purchase sense.
“Unfortunately, in the long term, buyers may turn away from Apple because of the lack of the sense of revolutionary products and very high margins for Apple’s smartphones. Due to the high prices of the new devices Apple is losing market share in emerging countries as there are leading low-cost devices due to low average wages,” — said “Газете.Ru” senior analyst, “freedom Finance” Vadim Merkulov.
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