14 DAY TRIAL // The high prices of the iPhone XS and iPhone XS Max are likely to become a bigger problem in the coming months, with sales expected to drop substantially as we approach the end of the year.
A report from Digitimes and citing supply chain sources indicates that everyone expects demand for the iPhone XS and iPhone XS Max to go down in the coming months, particularly because of how much Apple charges per device.
The top-of-the-range iPhone XS Max costs $1,449 in the United States, while the new iPhone XS is available from $999.
Initial sales of this new generation haven’t matched the performance figures of the model it replaces, and suppliers believe that this happens because of the rather subtle upgrades and the high cost that customers must pay.
Many expect Apple to cut orders by the end of the years in order to align production with demand, a move that would obviously impact suppliers as well.
Enter iPhone XR
While Apple seems to be optimistic about the launch of the iPhone XR, suppliers are rather reluctant, especially because the price of the device places it nearly in the same range as high-end Android phones. iPhone XR will be available in the US from $749.
Apple itself expects the XR to account for more than 50 percent of the sales recorded by 2018 iPhones, and this does make sense given the lower price.
However, the difference in terms of hardware versus the premium models could be a decisive factor for customers comparing the new devices. iPhone XR comes with just a single rear camera, doesn’t feature 3D Touch and dual SIM support, and instead of an OLED screen uses LCD, which has previously been used on iPhone 8 and iPhone 8 Plus.
iPhone XR will become available for pre-order on October 19 and will go on sale a week later on October 26.