may have
quietly begun to cut iPhone prices, but it may just be the start. A new report reveals much bigger price cuts appear inevitable if the company hopes to boost interest in the iPhone XS (details), iPhone XS Max (details) and iPhone XR (details)…  

Picked up by Business Insider, news has leaked today that iPhone camera lens maker Largan Precision has reported a jaw-dropping 29% fall in November revenue compared to the same period last year (the new iPhones went on sale in September). And the blowback on Apple may have expensive consequences.

Apple’s iPhone XS, iPhone XS Max and iPhone XRApple

29% is simply too big to ignore and 9to5Mac notes Apple shares have now dropped 7.4% in just two days and roughly 20% in the last month. Apple has already reportedly “enforced a second wave of order reduction in the wake of weaker-than-expected sales for its new iPhones”.

The response from Apple has been to cut prices, but the escalation of this strategy has clearly been eye-opening.

For Black Friday, Apple only gave away gift vouchers worth up to $50 if you paid full price for older generation hardware. Contrast that with a move last week to offer an extra $100 ‘GiveBack’ off new iPhones which yesterday turned into a discount of up to $300 off the iPhone XR – something Apple advertised on its front page.

As such the road ahead looks set to have significant financial consequences for Apple and equally significant financial upsides for customers. Apple is famed for having by far the largest profit margins of any phone maker and it looks like biting into them is the only answer.

But for how long, remains an obvious question.

Apple’s iPhone XR has received major new price cutsApple

After all, leaks have revealed Apple’s next iPhones will miss out on 5G and the company had apparently already set in stone its plans to repeat the iPhone X design for a third generation in 2019. These are not moves which will boost falling consumer interest, even if rumours of one crowd-pleasing feature return prove correct.

As such, Apple now looks to be stuck in a price war with itself and that’s a situation which was unthinkable just a few years ago. Moreover, why would you buy a new iPhone now when the cuts only look set to get bigger…


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