Expect more of these in the coming months due to poor sales

Jan 25, 2019 07:53 GMT  ·  By

Apple’s iPhone XR is getting significantly cheaper at another Japanese carrier, as the Cupertino-based tech giant is working with local companies to boost sales of the 2018 model.

The high price of the new iPhone generation continues to be the main reason for the weak demand, and Apple has recently decided to offer price cuts in Japan in order to boost sales of specific models.

The iPhone XR, in particular, was discounted at NTT Docomo in late December by approximately $100, and now SoftBank follows in its footsteps.

The iPhone XR will cost 10,800 yen less when purchased from SoftBank with a two-year plan, which means customers will receive a price cut of 450 yen per month. Overall, this makes the iPhone XR some $100 more affordable at the Japanese carrier.

iPhone XR is Apple’s most affordable 2018 iPhone, with pricing in the United States beginning at $749.

Dropping iPhone sales

However, sales of the device have until now been very low, with analysts anticipated further price drops in the coming months.

On the other hand, Apple is trying to disguise these price cuts as carrier subsidies, most likely in an attempt to play down reports of dropping iPhone sales.

Nevertheless, people close to the matter said recently that Apple has already adjusted production at its suppliers, as the company struggles to align production with the market demand. Furthermore, Apple has also increased the trade-in value of its older iPhones in an effort to drive more customers to new iPhones.

In the meantime, Apple’s CEO Tim Cook says one of the reasons for weaker than anticipated iPhone sales is the battery replacement program that the company launched last year. Because of new batteries, iPhone customers hold on to their devices longer, which means that upgrades aren’t happening at the same pace as before.