14 DAY TRIAL // iPhone XS and iPhone XS Max are the most expensive iPhones ever released by Apple, with the latter reaching $1,449 when equipped with 512GB storage in the United States.
And while Apple doesn’t seem to be concerned that the high prices could affect sales, saying instead that customers are willing to pay for innovations, suppliers are worried that shipments may be impacted.
And, as a result, their businesses could be hit too, as Apple could reduce orders in case new-generation iPhone do not reach the expected sales target.
A report from Digitimes indicates that suppliers have previously been “more concerned” about reaching Apple’s requested production capacity, but most are now cautious about it, as they believe that sales may not be as high as anticipated.
Furthermore, reaching the desired production capacity is easier now given that the new models use parts from the previous generations.
Cheaper previous-generation iPhones
Apple suppliers believe that making the iPhone 7 and iPhone 8 cheaper could also hit the market performance of the 2018 models, as more customers would stick with these devices due to the high prices of their successors.
Ming-Chi Kuo, one of the most reliable Apple analysts, says demand for iPhone XS and XS Max is currently lackluster, explaining that iPhone XR could be the model accounting for nearly 60 percent of all sales.
iPhone XR is the cheapest iPhone launched this year, with pricing to begin at $749 in the United States. In addition to an LCD screen, which is being used as a cost-saving measure, the device comes with just a single-lens camera, and no longer sports 3D Touch.
This particular model will go on sale in October due to what many described as production struggles with the displays. The notch has raised a series of issues for Apple suppliers, and yield rates have been relatively low, though the production pace is now increasing and is getting close to Apple’s desired levels.