Apple reportedly cuts production orders for iPhone XS, iPhone XS Max, and iPhone XR

“iPhone unit sales haven’t been up to the mark but it’s not as big a problem as it sounds”

A couple of weeks after reports of Apple reducing the production orders for iPhone XR emerged online, there is word that the company has made a similar move for the flagship iPhone XS and iPhone XS Max. According to The Wall Street Journal, the demand for the new iPhone lineup has been weaker than expected, especially for the budget iPhone XR. Owing to this, Apple is cutting production orders from its list of suppliers including Foxconn, Pegatron and Wistron among others.

iPhone XS_featured_2

This shows that that despite not being able to sell too many units, Apple has managed to grow at a pretty good rate in terms of revenue. Something that’s a reflection of its recent change in strategy for iPhones, which is focusing more on raising the amount of money made from each unit than driving sales by reducing prices. And judging from the recent earnings call, it seems to be working. Despite seeing no change in iPhone unit sales year over year, the Cupertino giant witnessed a 29 percent revenue increase in its smartphone division. It should also be noted that Apple will not be disclosing the number of units it sells from the next quarter.

And it’s not just iPhones, Apple products across the board are witnessing a price hike. The refreshed MacBook Air now starts at $1,199, up from the previous $999, and the Mac mini starts at $799, up from $499. Even accessories such as Apple Pencil 2 and the new Smart Keyboard have become costlier.

And apart from increasing the overall revenue, Apple’s price hike strategy has benefitted the company in another way, that is driving sales from the company’s services division. Apple Care, iCloud, and Apple Music, reached an all-time revenue record of $10 billion during the previous quarter (thanks in particular to the high repair costs of Apple products).

Apple iPhone XS Specifications
Performance
Hexa Core (2.49 GHz, Dual Core + 1.52 GHz, Quad core)
Apple A12 Bionic
4 GB RAM
Display
5.8 inches (14.73 cm)
1125x2436 px, 463 PPI
OLED
Camera
12 MP + 12 MP Dual Primary Cameras
Quad LED True Tone Flash
7 MP Front Camera
Battery
2658 mAh
Fast Charging
Non-Removable
Apple iPhone XS Price View All
Rs. 75,439.00
Go To Store
Rs. 84,990.00
Go To Store
Rs. 84,999.00
Go To Store
Apple iPhone XS Video
Given his obsession with all things tech, becoming a writer in this field was the natural career progression for Siddhant. When he's not busy following the tech world, he loves spending time with pets or slaying Messi on the virtual soccer field.
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SOURCEThe Wall Street Journal