Apple is reportedly planning to lower the price of their newest iPhone XR in Japan which is the first time that Apple has taken such a measure within merely a few months of launch.
According to a report by The Wall Street Journal Apple may offer subsidies to teleoperators in Japan to in-turn reduce the price of the iPhone XR which currently costs 84,800 Yen (around 750 USD). This is because the iPhone 8 continues to outsell the XR in the Japanese markets even though the latter has a modern design with the notch approach, better chipset, great camera and a beefier battery. The new pricing for the iPhone XR in Japan is yet to be revealed.
The lower sales may be due to late launch of the iPhone XR, wherein, the early adopters switched to the iPhone X, XS and XS Max while many others chose to stick with the iPhone 8 and 8 Plus. Apple has previously too reduced prices, like in the case of the iPhone 6s where the price and production were both lowered to better handle the demand and supply of product, but this was never done in the first few months post-launch.
It is clear that the sales of the new iPhones are not going as expected by the company. Adding to this, there are also reports that Apple will be resuming the production of the iPhone X because the company needs to fulfill their deal with Samsung for the purchase of a minimum number of OLED panels for their iPhones.
Selling the older iPhone X will help Apple bridge this gap in profits due to the underperforming sales of the XR because the iPhone X has a lower cost incurred on the components and an overall lower production cost as well. Apple is already well known for pushing older products in markets where these products are doing particularly well and they are probably going with this approach once again.