Apple is having a hard time selling its iPhones in China. Last week, Apple CEO Tim Cook said that there was weak demand for iPhones in Greater China. The reason behind iPhone low demand is that Apple fails to compete with local smartphone makers who are offering cheaper smartphones.
Earlier this week, reports claimed that Apple would cut production for iPhone XS and XR by another 10 percent in the first quarter of 2019. That seems to be a wise move as Apple is trying to attract more customers out there. In reality, Apple led the Chinese smartphone market in terms of revenue in Q3/2018, but it only finished fifth in terms of shipments. Huawei now dominates the local smartphone market, and Apple has a lot of things to do to overthrow Huawei.
According to the latest reports, Apple will drop the prices of its iPhone models in China, including iPhone 8, iPhone XR, iPhone XS, and iPhone XS Max. Apple’s move aims to address slow iPhone sales in China, but this is not a big price cut. Specifically, many of Apple’s iPhones will see a $59 drop compared to their initial retail prices, while the iPhone XR gets a bigger cut of $66 in China.
Apple is also dealing with iPhone sales ban in China after reports of patent infringement. Last year, a Chinese court ordered a ban on many of iPhone models after deciding that Apple had violated some of Qualcomm’s patents. Apple is now relying on Intel for modem chips for its iPhone models. However, Apple is still doing pretty well in the US. The iPhone XS and iPhone XR are among the best-selling phones in Q3/2018 in the US market. In reality, US-based carriers are offering discounts for Apple iPhones, allowing users to grab new iPhones at cheaper rates. Reports claim that Apple iPhone was the hottest item during 2018 holiday shopping season.
2019 is here and we are expecting to see new products from Apple. Sources say that Apple will launch a new iPad Pro at an event in March. Last year, the Cupertino firm announced a new 9.7 inch iPad at its education event in March, while the iPad Pro made its debut in October.
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