A new study has confirmed fears of disappointing demand for Apple's newest entry-level iPhone.
Its sales in India have also been focused on lower-end phones - more than half of its sales volume is driven by models older than the iPhone 8, launched past year, according to technology research firm Counterpoint. "Then, the similarly-priced models accounted for 39% of units, and after they had been available for a month before the iPhone X was released". The company reduced the prices for iPhone X previous year since it introduced new 2018 iPhones models globally.
The report has also revealed that compared to last year's iPhone 8 and iPhone X, the attractively priced iPhone XR has caused more Android users to switch to iOS. The Cupertino, Calif. -based company has seen its stock drop more than 30 percent as numerous parts and chip suppliers for the iPhone have slashed sales forecasts. Apple has worked aggressively to boost sales of its devices, advertising the iPhone XR for $449 online, a $300 discount.
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The report says that 16 percent of iPhone buyers upgraded to iPhone 30 days after iPhone Xr was released. As a point of comparison, only 11% of new iPhone owners during November of 2017 were coming over from the Android camp. In the U.S., Xr's sales contributed 32 percent to the total iPhone sales while the combined sales of iPhone Xs and Xs Max contributed 35% to the total sale.
CIRP's co-founder Mike Levin said, "Of course, Apple doesn't just state plainly its launch strategy. But, based on the pricing and features, we can infer that Apple positioned the iPhone XR to appeal to potential operating systems switchers from Android".
Indian taxes on import of devices and components have also heightened Apple's headache in a market where it has only a 1 percent share by smartphone shipments.