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More Bad News From Apple As iPhone XR Price Slashed | Forbes

In the short-term, specifically through the rest of this calendar quarter, I don’t expect Apple to implement a direct price cut on the iPhone XR, iPhone XS, or iPhone XS Max to consumers. Although Tim Cook and his team are looking to move to services for more of its income, the “iPhone as a luxury item” approach requires a high ticket price that people are willing to pay (and Apple’s books require the high margins on the high price of these new smartphones).

If people are not willing to pay, then either Apple will have to get use to lower annual hardware sales (and a smaller pool of users to sell services and accessories to) or a direct cut in the price of the new iPhone family. The former will make it much harder to build up the services side of the business, while the latter would be a tacit admission that the pricing strategy of the iPhone is wrong.

It’s unlikely that the iPhone is going to see a significant rise in sales. The faithful will have already put in their pre-orders, those on Apple’s upgrade program will have processed the renewals, and the rush of publicity from the launches has died down. The goal now may be to simply maintain the sales numbers and revenue of previous years without damaging the ‘luxury’ associated with the high-cost smartphones.

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More Bad News From Apple As iPhone XR Price Slashed.