14 DAY TRIAL // iPhone XR was supposed to be the model generating huge enthusiasm around Apple’s upgraded iPhone lineup, but as it turns out, things are exactly the other way around.
Basically, thanks to its lower price, iPhone XR was projected to be the best-selling 2018 iPhone, and Apple’s orders at suppliers took place according to this forecast. More than 50 percent of iPhones Apple wanted its partners to get ready were the XR.
But as top-rated Apple analyst Ming-Chi Kuo says, not only that this isn’t happening now, but he sees little reason to believe things could change in the first quarter of 2019.
iPhone XR too expensive
So in a new note to clients, Kuo reduces the iPhone XR shipment estimates by as much as 30 million for the first quarter of 2019.
“We have reduced our iPhone XR shipment estimation from 100mn units to 70mn during the new product lifecycle (4Q18–3Q19) for the following reasons: 1) Negative impacts on consumer confidence from the trade war, especially in the Chinese market, 2) expectations from more users for more affordable XR or the dual-camera and narrower bezel design to be provided at the current price level, and 3) competition from Huawei's Mate 20 series. We have reduced our XR shipment estimations for 4Q18, 1Q19, and 2Q19 by 30–35%, 25–30%, and 25–30% to 30–35, 20–25, and 10–15mn units, respectively,” Kuo was quoted as saying.
This quarter wouldn’t be very affected by the iPhone XR performance, mostly because Apple records strong sales of older-generation models, like the iPhone 8.
But in the long term, it looks like iPhone XR may not be the record-breaking iPhone Apple hoped it to be. The price of the phone is considered to be the number one drawback for customers, as it’s available in the United States from $749, despite lacking advanced features like a dual-camera configuration, 3D Touch, and an OLED screen.