Apple Reportedly Reassigned Some Marketing Staff to Work on Bolstering Sales of iPhone XS and iPhone XR

Apple moved some of its marketing staff off other projects to focus on bolstering sales of the latest iPhone lineup in late October, around the time the iPhone XR launched, according to Bloomberg's Mark Gurman.

iphone xs vs xr
The report cites an unnamed person familiar with the situation who described the move as a "fire drill" and "a possible admission that the devices may have been selling below some expectations," a concern shared by some analysts and investors. Apple's stock price has plunged nearly 17 percent since November 1.

Apple is certainly marketing the latest iPhones more aggressively than in previous years. A banner at the top of its website advertises the iPhone XR "from $449," but with an asterisk, as that price requires trading in an iPhone 7 Plus for a $300 credit as part of a limited time promotion rarely seen from Apple.


These concerns are nothing new following iPhone launch season, with the doom and gloom often fueled by weakening forecasts from iPhone suppliers.

Cirrus Logic, a supplier of audio-related components for iPhones, expects its revenue for the current holiday season quarter to be around 16 percent lower than it originally forecasted due to "recent weaknesses in the smartphone market." While not named, Apple accounts for around 80 percent of Cirrus Logic's business.

Making matters worse, The Wall Street Journal reported that Apple recently slashed production orders for the iPhone XS, iPhone XS Max, and iPhone XR due in part to "lower-than-expected demand."

Apple CEO Tim Cook has dismissed those supply chain reports in the past. During an earnings call in January 2013, he noted that the company's supply chain is very complex and that conclusions shouldn't be drawn from singular data points:

Even if a particular data point were factual, it would be impossible to interpret that data point as to what it meant to our business. The supply chain is very complex and we have multiple sources for things. Yields can vary, supplier performance can vary. There is an inordinate long list of things that can make any single data point not a great proxy for what is going on.

It certainly doesn't help that Apple recently announced that it will no longer disclose iPhone unit sales in its quarterly earnings results, leading some to believe that iPhone sales have peaked and Apple has something to hide.

Apple's financial chief Luca Maestri said unit sales are "not particularly relevant for our company at this point," as they are "not necessarily representative of the underlying strength of our business." He did note that Apple may provide qualitative commentary if the info is valuable to investors.

While there were similar concerns about the iPhone X, that device ultimately sold well, so time will tell whether these headlines are baseless again. However, analysts will now have to rely exclusively on iPhone revenue to gauge sales, so the situation will no longer be as transparent going forward.

Apple has yet to announce a date for its next quarterly earnings report, but it will likely be released at the end of January. Apple expects revenue of between $89 billion and $93 billion, which would be an all-time company record.

Top Rated Comments

MyMacintosh Avatar
47 months ago
More proof... Apple should've just lowered the entry prices and this could've been avoided.
Score: 98 Votes (Like | Disagree)
MacFather Avatar
47 months ago
Deleted.
Score: 98 Votes (Like | Disagree)
brian3uk Avatar
47 months ago
Lower the effin' price and you wont need marketing people.
Score: 87 Votes (Like | Disagree)
levitynyc Avatar
47 months ago
Hire me.

“Lower the price”

Done.
Score: 53 Votes (Like | Disagree)
rjtyork Avatar
47 months ago
Whoops! We made the iPhone 7, 7+, 8, 8+ and X too powerful. Now people are actually holding on to their phones for longer than 2 years. Better screw up the next update and make them slow so people are forced to upgrade!
Score: 47 Votes (Like | Disagree)
FSMBP Avatar
47 months ago
Regardless of what anyone says, Steven Jobs did work at Apple. He obviously affected something. Yes, he did pick Tim Cook at the time to be CEO; then again, he also picked Scott Forstall to run iOS. To say Apple still has the same magic as it with Steve, is to say Steve didn't do anything. Which we know is false.

Apple was always expensive but justified. Now, they're increasing prices by 20% and offering less.

The person running Apple's ship isn't a product-guy. I think it shows with this insane iPhone lineup, MacBook line-up etc., iMac's with 5400 RPM HDDs.

Apple is about experience. Well, they used to be about it.
Score: 41 Votes (Like | Disagree)

Popular Stories

2022 back to school apple

Apple Launches 2022 Back to School Offer: Up to $150 Gift Card With Mac or iPad

Friday June 24, 2022 5:08 am PDT by
Apple today launched its annual "Back to School" promotion for college/university students in the United States and Canada. This year's promotion offers a free Apple gift card with the purchase of an eligible Mac or iPad, rather than free AirPods like last year. Apple is also offering students 20% off AppleCare+ plans during the promotion. Apple is offering a $150 gift card with the purchase ...
apple ar headset concept 2

Apple CEO Tim Cook Hints at AR/VR Headset: 'Stay Tuned and You'll See What We Have to Offer'

Wednesday June 22, 2022 6:34 pm PDT by
CEO Tim Cook this week did an interview with China Daily, where he once again commented on on the future of augmented reality and hinted at Apple's work on an AR/VR headset. Render via designer Ian Zelbo Cook said that Apple is excited about the opportunities available with augmented reality, which is not too far off from prior comments that he's made, but he went on to say that people should ...
airpods pro 2 1

AirPods Pro 2 Said to Feature Upgraded H1 Chip, Find My, Heart Rate Detection, USB-C and More

Friday June 24, 2022 9:48 am PDT by
The next-generation AirPods Pro could come with a long list of new features that include heart rate detection, the ability to function as a hearing aid, and a USB-C port according to a report from 52Audio. The site claims that it has received new information on the AirPods Pro 2, and it has used that information to provide some renders on what the earbuds might look like. Design wise, there...
customize wallpaper setting ios 16

iOS 16 Beta 2 Tidbits: New Wallpaper Colors, Backup Over LTE, SMS Filtering and More

Wednesday June 22, 2022 2:16 pm PDT by
Apple today seeded the second betas of iOS 16 and iPadOS 16 to developers for testing purposes, and the new betas introduce new features and refine some of the changes that Apple made with the first iOS 16 release. Subscribe to the MacRumors YouTube channel for more videos. Lock Screen Photo Wallpaper Customization When customizing a photo on the Lock Screen, there are two new DuoTone and...
home app ios 16

Apple Confirms iPad Will No Longer Be Supported as a Home Hub in iOS 16

Wednesday June 22, 2022 12:38 pm PDT by
The iPad will no longer be able to be used as a home hub following the launch of iOS 16, iPadOS 16, macOS Ventura, and the HomePod 16 software this fall, Apple confirmed today. As discovered in iOS 16 code by MacRumors contributor Steve Moser, Apple says that the iPad will no longer be supported as a home hub. This information will be displayed in the Home app after updating to iOS 16.A home ...
apple ar headset concept 1

Apple Rumored to Announce 'Game-Changer' AR/VR Headset in January 2023

Friday June 24, 2022 2:52 am PDT by
Apple is "likely" to announce its long-rumored mixed-reality headset as soon as January 2023, Apple analyst Ming-Chi Kuo has reiterated. Concept render based on purported leaked information by Ian Zelbo In a detailed post on Medium, Kuo explained that Apple's headset will be a "game-changer" for the augmented-reality and virtual-reality market. Describing some of the headset's...