Analysts say iPhone XR pricing is low will damage Apple’s revenue in 2019
Apple’s iPhone XR price?
According to foreign media reports, Apple’s iPhone XR price announced at the new product launch on Wednesday is 100 dollars lower than the price expected by Goldman Sachs analysts. The analyst worried that the iPhone XR pricing is too low may hurt Apple’s revenue in FY 2019.
A few days before the new product launch at the Jobs Theatre, several analysts predicted the price of the iPhone XR.
This is the lowest price of Apple’s three new iPhones, which are equipped with LCD screens, while the iPhone XS and iPhone XS Max are equipped with OLED screens. It has only one camera on the back and no 3D Touch stereo touch.
Pricing Of iPhone
Last week, Goldman Sachs analyst Rod Hall suggested that Apple’s 64GB version of the iPhone XR is priced at $849. As a result, it is $100 higher than the price Apple announced on Wednesday.
By the time of the launch on October 26, the iPhone XR will start at $749 (according to a 24-month installment and a monthly repayment of $37.41).
The 128GB version of the iPhone XR is priced at $799 (according to a 24 month installment, repayment of $39.50 per month). The 256GB version is priced at $899 (according to a 24 month installment, a monthly repayment of $43.66). Although the iPhone XR launch date is five weeks behind the other two iPhones, most analysts expect the phone to be the highest of the three new iPhones.
Although the iPhone XR is lower than analysts’ expectations for consumer favors, Hal is most worried that Apple’s revenue will be affected.
He believes that the iPhone XR will erode the sales of the iPhone 8 and iPhone 8 Plus, reduce the average selling price of the iPhone series, and reduce Apple’s revenue in FY 2019.
The analysts expect that even if the iPhone XR sales are slightly higher than expected, the underpriced iPhone XR may weaken Apple’s revenue.
At the same time as the launch of three new iPhones, Apple also stopped selling some lower-priced phones, such as the iPhone 6s and iPhone SE. It also stopped selling the iPhone X at a very high price.
“Apple has launched three new iPhones as scheduled. However, the price of the LCD iPhone XR is lower than our expectation.
We believe that this will erode the sales of the iPhone 8/8+, forcing us to lower the average selling price and revenue expectations. We will increase its sales expectations and only slightly offset some of the reduced revenue.”