Apple Reportedly Plans to Cut Price of iPhone XR in Japan Due to Poor Sales and Restart iPhone X Production

Apple plans to discount the price of iPhone XR models in Japan by offering subsidies to Japanese carriers, according to a new report out this morning.

The Wall Street Journal said the price decreases on the $750 iPhone models could come as early as next week, citing sources familiar with Apple's sales strategy in the region.

"A price cut within a month off the release is rare not just for Apple but for smartphone makers in general," said a senior official at a wireless operator, who monitors sales.

Analysts say weaker-than-expected demand for iPhone XR may mirror what happened with the iPhone 5c in 2013, where sales picked up the following year. Apple's higher-priced XS and XS Max models, released a month earlier, appeal more to tech's early adopters who typically fuel initial sales of new iPhones.

The decision comes in the wake of a WSJ report earlier this week that claimed Apple has slashed production orders for its latest iPhone XS, iPhone XS Max, and iPhone XR models due to lower-than-expected demand.

Part of the problem for Apple is that the iPhone 8 is apparently still hugely popular in Japan because of its affordability, given that it's cheaper than the XR and was still available when Apple launched the XS and XS Max.

According to WSJ's sources, Apple suppliers have also resumed making the iPhone X, the 2017 model that Apple no longer sells at its own stores. If Apple plans to sell the older model in Japan, it wouldn't be the first time the company has produced previously discontinued models for regional markets where it sees sufficient demand for cheaper devices. The strategy also allows Apple to benefit from lower-cost components and depreciated production line machinery.

However, supply chain sources who spoke to WSJ claim the resumption of iPhone X production is partly due to Apple's need to use OLED panels ordered from Samsung – panels that were previously earmarked for use in the iPhone XS and XS Max devices that have since been hit by swingeing production cuts.

Related Roundup: iPhone XR

Top Rated Comments

(View all)
Avatar
22 months ago
It’s simple economics: wages are stagnant, inflation is rising so fewer people can justify spending a months mortgage payment on a device or £60-£80 a month for a contract. If the price of iPhones keep going up, sales will go down. Simple.
Score: 109 Votes (Like | Disagree)
Avatar
22 months ago
Things they need to cut the price of everywhere:

iPhone XS
iPhone XS Max
iPhone XR
iMac
MacBook Pro
MacBook
MacBook Air
Mac Mini
iPad Pro
iPad Air
iPad
AirPods
Apple Watch
Memory Upgrades
Apple Pencil

EDIT: Forgot about the Apple HomePod.

What did I miss?
Score: 108 Votes (Like | Disagree)
Avatar
22 months ago
I think apple is reaping what they have sown. I think they will be facing this issue worldwide to some degree. The prices are too high to justify the phones, financing (or leasing) masked the high cost to some degree but the Xs and Xs Max are so expensive, its a lot even if you finance them over two years.
Score: 101 Votes (Like | Disagree)
Avatar
22 months ago
It more and more looks like Apple overplayed it's hand with this year's high-priced products.

The iPhone XS and XR are not worth the upgrade for many over an iPhone 7 or 8 as the only things that are improved are the camera and the screen (for an almost 50% premium!). Even on an iPhone 7 you won't max out the processor or the GPU and I still think Touch ID is worth way more than face ID.

It’s simple economics: wages are stagnant, inflation is rising so fewer people can justify spending a months mortgage payment on a device or £60-£80 a month for a contract. If the price of iPhones keep going up, sales will go down. Simple.

Here in the Netherlands you'll be registered for having an outstanding loan if you buy a subsidized phone, making iPhones way less attractive for people who want to buy a house as the registration will cut thousands of euros from your maximum mortgage and will increase your rent. Just putting down € 1500 at once for a phone is not something a person does every day.
Score: 81 Votes (Like | Disagree)
Avatar
22 months ago

Things they need to cut the price of everywhere:

iPhone XS
iPhone XS Max
iPhone XR
iMac
MacBook Pro
MacBook
MacBook Air
Mac Mini
iPad Pro
iPad Air
iPad
EarPods
Apple Watch
Memory Upgrades
Apple Pencil

What did I miss?

Tim Cook's salary.
Score: 78 Votes (Like | Disagree)
Avatar
22 months ago
Apple have bitten the hands that feed them with some outrageous price increases in recent years. Good.
Score: 70 Votes (Like | Disagree)

Top Stories

Apple Warns Against Closing MacBooks With a Cover Over the Camera

Friday July 10, 2020 11:12 am PDT by
Apple this month published a support document that warns customers against closing their Mac notebooks with a cover over the camera as it can lead to display damage. Image via Reddit Apple says that the clearance between the display and the keyboard is designed to very tight tolerances, which can be problematic. Covering the camera can also cause issues with automatic brightness and True Tone....

Leaker: 'iPhone 12 Pro' to Come With 6GB of RAM

Friday July 10, 2020 1:59 am PDT by
Later this year, Apple is expected to release four OLED iPhones in three display sizes, including 5.4, 6.7, and two 6.1-inch models. Rumors suggest the 6.7-inch iPhone and one 6.1-inch model will be higher-end devices, and now leaker @L0vetodream has corroborated previous rumors about the internal specs of Apple's upcoming lineup. Rumors suggest Apple will use 5-nanometer A14 chips in its...

Apple Moving Forward on Semitransparent Lenses for Upcoming AR Headset

Friday July 10, 2020 7:24 am PDT by
Apple and Foxconn have reached a key milestone in the development of Apple's long-rumored augmented reality headset, with the semitransparent lenses for the device moving from prototype to trial production, reports The Information. Apple is developing the lenses on a single production line at a Foxconn factory in Chengdu in southwestern China, where most of Apple’s iPad production is...

Kuo: Apple Silicon Macs to Include 13-inch MacBook Pro and MacBook Air This Year, 14.1-inch and 16-inch MacBook Pro Models Next Year

Friday July 10, 2020 2:58 am PDT by
At last month's WWDC, Apple officially announced that its Mac computers will be transitioned from Intel x86 to homegrown Apple Silicon chips. Apple said it plans to deliver the first Apple Silicon Mac by the end of the year and complete the transition in about two years. According to Apple analyst Ming-Chi Kuo, a 13.3-inch MacBook Pro with a form factor similar to the current 13.3-inch...

Arm-Intel-PowerPC Universal Binaries Are Possible

Saturday July 11, 2020 1:42 pm PDT by
Casual MacRumors visitors may not realize that we have a very active PowerPC forum where users discuss issues related to PowerPC Macs that have not been produced since 2006. Threads range from hardware upgrades and software options to nostalgia: Photo by AphoticD Apple's recently announced transition to Apple Silicon (Arm) based Macs raised some interesting questions about future support...

iPhone 12 Sizes Compared with iPhone SE, 7, 8, SE 2, X, 11, 11 Pro and 11 Pro Max [Update]

Tuesday July 7, 2020 6:49 pm PDT by
Apple is planning on launching the iPhone 12 this fall which is rumored to be coming in 3 different sizes: 5.4", 6.1" and 6.7". The middle size (6.1") matches up with the currently shipping iPhone 11, but the other two sizes will be entirely new. Over the weekend, there was some excitement about how well the new 5.4" iPhone 12 compares to the original iPhone SE. Those who have been hoping...

Tom Hanks WWII Movie 'Greyhound' Debuts on Apple TV+

Friday July 10, 2020 3:33 am PDT by
Apple TV+ today debuted "Greyhound," the highly anticipated Second World War movie starring Tom Hanks as a naval officer given command of Navy destroyer Greyhound in the Battle of the Atlantic. "Greyhound" features Hanks as George Krause, who must fight his own self doubts and personal demons as he leads a convoy of Allied ships against German U-boats to prove that he belongs in command. ...

Top Stories: iOS 14 Public Beta, iPhone 12 Size Comparison, 14-Inch MacBook Pro Rumors

Saturday July 11, 2020 6:00 am PDT by
After one round of developer beta testing, Apple unleashed iOS and iPadOS 14 to a wider audience this week, opening it up to members of the public beta program. There are lots of changes and new features to check out, but as with any beta, be careful about installing it on your main devices. Subscribe to the MacRumors YouTube channel for more videos. Other major stories this week included our ...

Hands-On With tvOS 14: Picture in Picture, 4K YouTube, HomeKit and More

Thursday July 9, 2020 12:48 pm PDT by
Apple at WWDC introduced a new version of tvOS, the software that's designed to run on the fourth and fifth-generation Apple TV models. tvOS updates are often more minor in scale than iOS, watchOS, and macOS updates, but tvOS 14 has some useful new features. Subscribe to the MacRumors YouTube channel for more videos. Apple in tvOS 13 introduced a Picture in Picture option for the Apple TV...

Apple CEO Tim Cook's 2019 Compensation Totaled Over $133 Million

Friday July 10, 2020 12:01 pm PDT by
Apple CEO Tim Cook was the second highest paid CEO in the United States in 2019, according to Bloomberg's list of the highest paid CEOs and executives in 2019. Cook received compensation totaling $133,727,869 by Bloomberg's count. Almost all of Cook's compensation was provided in the form of stock awards and related performance bonuses. As reported by the SEC earlier this year, Cook received ...