Apple is continuing to struggle with it’s new lineup of smartphones, like it’s Apple iPhone XR. Apple analyst Ming-Ching Kuo says that most of the blame should go towards the XR’s sales conpetition from Huawei. Apple’s stock also dropped yesterday when the news broke that one of it’s suppliers reduced it’s outloook for the rest of the year, citing reduced orders from one of it’s biggest suppliers.
The iPhone XR is also supposed to be somewhat budget friendly, being an alternative to the company’s ultra luxury iPhone XS and iPhone XS Max models. The iPhone XR also, if Apple wants to admit it or not, the company’s answer to the influx of powerful but affordable Android devices.
Though, the iPhone XR does not seem to be doing well. Apple, and for the first time ever, refused to release sales number for the XR, XS and XS Max during it’s most recent earnings call. Though other industry sources are pointing to the new iPhones (and the XR in particular), in not meeting their sales expectations.
Popular Apple analyst Ming-Chi Kuo had originally stated that the iPhone XR is a big seller. Though, he now is charging his tune (via iPhone Hacks), by dropping his shipment estimates by a whole 30%.
Kuo also believes that part of the reason for the iPhone XR’s slow sales is competition from it’s Chinese manufacturer Huawei, being specifically the company’s newest Mate 20 lineup. Though this isn’t the case in the United States, which is where Huawei phones have a minuscule market saturation. Huawei is also giving Apple a run for it’s money everywhere else around the world.
Also, when you think about it, this theory makes a lot of sense. The Mate 20 series and the new iPhone’s were released right next to each other, and the price points for the Mate 20, Mate 20 Pro, and the Mate 20 X stand up very nicely against the iPhone XS, iPhone XS Max and the iPhone XR respectively. Though, the Mate 20 series also offers more of what consumers really want, like multiple camera lenses, small bezels, and other interesting color options.
It was yesterday that Apple’s stock had taken a dive when it was revealed that Lumentum, Apple’s principal supplier of facial recognition sensors, had slashed it’s revenue outlook for the year. While Lumentum did not mention Apple by name at all, they had mentioned the lowering of their estimates. They also did say they had received a request to “reduce shipments” from one of it’s “biggest industrial and consumer customers”. Just read between the lines there, as Apple investors clearly did.
Though it’s too early to even say for sure, it does seem like the iPhone XR is going to go the way of the iPhone 5C, which was a previously failed attempt by the company to release colorful iPhones with lower price points to help appeal to cash conscious consumers who normally flock to the Android-affordable phones.
via Android Authority