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Ming-Chi Kuo Cuts iPhone XR Lifecycle Shipment Estimates by 30 Million

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 believes that iPhone shipments for the current quarter will be in the same 75–80 million range he previously predicted, while he has lowered his first-quarter estimate to 47–52 million from a previous range of 55–60 million.
Kuo's prediction is somewhat curious given that he raised his early iPhone XR estimate a little less than a month ago and cited stronger demand than seen for the iPhone 8 last year with the potential for more stable demand over time.
Apple's stock price is down over 4 percent today, outpacing broader market declines and falling to its lowest point since the end of July.
Top Rated Comments
(View all)These aren't even affordable on contract. Carriers are now touting 3-year plans instead of 2; that's an extra year with the same phone just so you can pay the same monthly charge as before. Meanwhile, Huawei are killing it here. Their phones are gradually appearing everywhere; lots of new Nokias and Samsungs too (as the latter are frequently discounted).
The 1080p LCD-based Huawei P20 Lite (which the XR roughly competes with) is just £229 outright. Is the XR better? Maybe. But it's not £520 better. Even going up tiers to the P20 (£399) and the flagship P20 Pro (£629) make the iPhone prices look ludicrous. I just don't see how Apple is going to sustain these prices against such decent competition.
Uh-oh. Almost looks like the XR is going to be a repeat of the iPhone 5c. I thought people loved phablets?
I think people do, which is why they bought the XS Max - iirc sales numbers were ok/good for that. The issue with this model is that it's just "the cheap version". Apple's lineup should be a $1000 iPhone XS with 128gb of storage, an iPhone SE2 with 64gb of storage, and an iPhone XS Max for $1200 with 256gb of storage (roughly speaking for all). There are a lot of people who want the XS series, a lot of people who want an SE-type phone, but there doesn't seem to be a real need for the XR.
Sometimes I don't think Apple understands their market. Make high-quality, repairable, expensive but not overpriced stuff that makes my life better/easier and you've got me for life. Cancelling the Time Capsule/AirPort Express, not updating the Mac lineup, and jacking up the price of the iPhones isn't a long-term winning strategy.
I am waiting and waiting for a desirable XR-Min, which is as solid as the SE was. My SE fell down several times without any damage. Best iPhone ever. And no, I don't like cases.
Uh-oh. Almost looks like the XR is going to be a repeat of the iPhone 5c. I thought people loved phablets?
True that.
Just reduce it to 5.5” and make it USD 649 and the sales will more than double.
At the moment I have a 1st gen iPad mini (which is just about hanging on to life), a late-2013 MBP (which runs great, albeit needing a new battery) and an iPhone 6S (ditto). Once one goes, it'll be like dominoes.
I don't want to change though. I'm hoping a decent laptop is unveiled before mine needs replacing, I quite like the XR but find it over-priced, and I'm considering ditching the tablet completely as there's no new mini and the Pros are over-engineered for what I'd use one for.
Hmm - three paragraphs just to say I'm on the fence ;)
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