China retailers slash iPhone prices after Apple sales warning

China retailers slash iPhone prices after Apple sales warning

China retailers slash iPhone prices after Apple sales warning

Apple Inc plans to launch three new iPhone models this year, including one with an LCD screen, to succeed its struggling XR model, the Wall Street Journal reported on Friday. Reports for the company's problems with the iPhone XR continue to surface, fuelled by analysts decreasing shipment estimates for the smartphone. There will be a successor to the iPhone XS Max, that will sport a triple camera setup in the rear.

The news of the lineup also comes on the heels of several top Chinese retailers announcing they are slashing iPhone prices after the company's revenue warning and production cut.

The tech firm cut its quarterly sales target for the first time in a decade during the first week of 2019. Despite being pitched as the ideal iPhone for everyone, iPhone XR didn't really gain as much traction in the market as Apple had hoped.

As for the iPhone XR, that will be seeing an update in 2019 as well, the Journal says. For reference, the 64GB variant of iPhone XR is priced at $749 in the US.

Customers gather as they take part in a class to learn how to use their iPhones at an Apple Store on January 7, 2019 in Beijing, China. A new report indicates that many Chinese retailers have taken the uncommon step of slashing the prices of relatively new iPhones in order to win the attention of customers. Some retailers are discounting up to $118 (Rs 8,200 approximately) for the 64GB variant of iPhone XR.

Today's report follows an earlier investor note by Ming-Chi Kuo, in which he cut down shipment estimates for the iPhone.

Increased competition from local phone producers in China, where Apple makes 20 per cent of its total revenue, have hit the company's ability to keep growing in the market, chief executive Tim Cook told shareholders last week.

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