iPhone XS sales are weak, Apple resumes production of iPhone X

According to the “Wall Street Journal” report, due to poor sales of the new iPhone XS mobile phone, Apple’s foundry recently re-produced the old model iPhone X, hoping to help increase sales.

iPhone X is Apple’s product launched last year and has stopped selling in Apple retail stores; it is reported that iPhone X resumed production mainly because of the contract signed by Apple and screen supplier Samsung SDI. In addition, the cheaper iPhone XR sales are not satisfied. Reduced production targets by about one-third at the end of last month

Under the contract, Apple needs to purchase a large number of OLED screens from Samsung SDI. Since Apple recently reduced the production of iPhone XS and XS Max, it can only be filled by restoring production of iPhone X.

Earlier this year, Apple reduced its iPhone X production target from 40 million to 20 million. Market research organizations even predicted that the iPhone X would stop production in the fall and push for new iPhone sales. But now the iPhone XS series is not selling well. Therefore, re-production iPhone X to maintain Apple’s profits.

There is still a demand for iPhone X based on the market, and the cost of iPhone X accessories is lower than XS, which can increase the overall profit of Apple products.

The report also mentioned that Apple has significantly reduced the price of iPhone XR in Japan, mainly because Japanese consumers are more willing to spend less on the iPhone 8 series launched last year, rather than the more expensive iPhone XR. The official price of the iPhone XR in Japan is about $750, but since the carrier sells the phone when it is bundled with the billing traffic, its pricing is uncertain. The source did not elaborate on the price cuts.

Japan is one of Apple’s most profitable markets. A survey conducted by MMD Labo from July 31st to August 1st shows that Apple accounts for 46.7% of Japan’s smartphone market share. It is not clear whether Apple plans to offer similar discounts in other regions.

According to people familiar with Apple’s sales and production strategy, the company has previously discounted some iPhone models as one of the ways to clear inventory. At the time of the discount, Apple usually chooses some special markets.

However, Japanese operators pointed out that Apple’s discount on new iPhones launched less than a month is rare. Some Japanese consumers said that although the price of XR is much lower than that of XS, the display quality, the number of camera lenses and the data transmission speed have all declined, and the XR price is still too high.