The demand for Apple’s new iPhone model is not as much as the company hopes, and analysts are already revising their forecasts for overall shipments this quarter and even next quarter. According to reports, last week’s major Japanese wireless carriers are considering reducing the price of the iPhone XR ₹70,975, and NTT Docomo is now the first to announce a price cut. In order to increase sales in one of its most important markets, Apple has provided greater subsidies to operators, so the iPhone XR can be offered at a lower contract price. Earlier, when they chose NTT Docomo’s 24-month contract, users had to pay 36,000 yen (about 22,500 rupees) for the iPhone XR 64GB. Now, with the revised subsidy, the equipment cost is 24,000 yen (about 15,000 rupees).
The 9to5Mac first discovered this change on the NTT Docomo website, and it is expected that all Japanese operators will follow suit. According to the “Wall Street Journal” reported last week, the 24-month contract price decline was due to lower-than-expected iPhone XR market demand.
It is worth noting that Apple’s strategic move in Japan does not mean that the iPhone XR price cut will be announced in other markets. The company is quite awkward at discount prices, and it only offers them in markets where the company finds some benefits.
Due to lower-than-expected demand for new iPhone models, Rosenblatt earlier estimated production of its new iPhone model from 90 to 95 million units to 88 million units in the holiday season. It recently lowered it to 74 million units this quarter and 39 million units in the first quarter of 2019.