Last week, Apple first Q1 2019 earnings report came out and it is not showing good results about the new iPhone model. According to the wall street journal report, which explains that iPhone XR is failing Apple while some reports are even saying that iPhone XR a “flop,” it’s hard to deny the struggles the device is receiving in terms of functionality.
The report said that the price of iPhone XR is 6,499 yuan, or roughly $945. Therefore, many consumers think that iPhone XR is too expensive and they can buy High-end phone with better features and qualities at less price. Despite the fact that iPhone XR is cheaper than other the iPhone XS and iPhone XS Max.
Li Derong, a Shanghai-based programmer, said he is thinking about changing his iPhone 7 to Huawei Mate 20 Pro. As he browsed at a mobile phone shop, Mr. Li said the iPhone is “overpriced,” even though he thinks its ecosystem is great. Huawei’s battery and camera perform well. The Mate 20’s chipset makes it good for playing games, he said.
Also, the flagship features of iPhone XR such as Face ID, dual-SIM support, its edge-to-edge design. These features can be available on other smartphones in China at far lower prices. The wall street journal has also show statistical analysis that how Apple’s market has fallen in China over years. This might be due to increased competition of Huawei and Vivo phones as the consumers tend to like more these phones because of its less price.
Analyst Tim Arcuri explains:
Deepening the problem: Apple got hit by currency changes in China, Mr. Arcuri said. As the dollar rose against the yuan, he said he thinks Apple raised the local price of the XR to maintain margins, pushing it further above rival phones from Huawei Technologies Inc. and others with more features.
It looks like Apple has created a lot of XR units but now it is no more of Consumers attraction because of other Smartphone companies that are giving Apple a tough time.