Nikkei, Japan’s economic media, assures that the production volumes of the iPhone XR have already been reduced, which would prove a lack of enthusiasm for the newly launched smartphone. It was enough for the Apple stock price falls on the stock market. The market capitalization of the firm has lost some 10% in a few days, going back under the $ 1 trillion mark. There is really nothing to worry about.
Apple has unscrewed almost 10% since November 1st. This follows the mixed sales figures – but not bad – published by the firm at the beginning of the month and goes hand in hand with the announcement of the giant to no longer communicate the number of models of iPhone, Mac, and iPad sold. Moreover, if we believe the information published by the site Nikkei, Apple has already reduced the production rate of its brand new iPhone XR.
So many news that drop the share price, fell to its level of August 2018. However, no one questioned the existence of Apple last summer … Those who see in this episode “the beginning of the end “for Apple are certainly going a little fast.
What seems to reveal Nikkei shows even more than the Apple brand would have overestimated the sales of iPhone XR for its launch. The newspaper explains: “The Foxconn supplier first prepared about 60 assembly lines for Apple’s XR model, but has only recently used 45 production lines, which is about 100,000 fewer units per day. to reflect the new demand outlook, down 20 to 25 percent from the initial optimistic outlook. ”
Same story from the Taiwanese supplier Pegatron who told Nikkei: “The use of the production line of the iPhone XR is not reaching its maximum at the moment.” Finally, let us point out that Apple had asked the company Wistron to be ready to produce iPhone in case of strong last-minute demand, but still nothing. ”
A New Scenario For Apple?
The story is only repeating itself. At its launch in October 2017, the iPhone 8 – presented as a future bestseller – was quickly presented as a semi-failure, on the same chorus as the one heard today about the iPhone XR. This had led to a fall in the stock market. A few months later, it’s the turn of the iPhone X to see its production halved. Sales would be disappointing again. But “turnaround” in May the site CounterPoint released its ranking of the best-selling smartphones in the world, in which the iPhone 8 was in first place followed, in the third place, the iPhone X (the iPhone 8 Plus then ranks fifth).
So there is no surprise: as every year sales estimates seem slightly overstated and it will probably be enough to wait a few months for the new terminals reach their audience. Finally, if things go like last year.
How To Explain The Disappointing Results Of The iPhone XR?
Without even knowing the latest sales figures for Apple, it is not very difficult to understand why the launch of the iPhone XR would be smooth. First, even if the XR is the cheapest of the three new iPhone presented in September, it remains a phone to 855 €. Second, many Apple fans jump first on the news to have the latest iPhone out, and they tend to move towards the flagship of the new range, here the iPhone XS. Other Apple customers are ready to wait a few months for promotions on the most “accessible” model, especially with the arrival of Christmas. It is therefore not impossible that sales of iPhone XR take off in the coming months.
However, in the future with the arrival on the market of Chinese manufacturers, it may be that the brand apple is no longer able to afford this kind of stall. Huawei and Xiaomi are actually better and better implanted around the world and are in a position to dethrone the historic leaders Apple and Samsung. Chinese manufacturers are indeed on the lookout for the slightest mistake of their prestigious competitors.
Still, to judge the success of the iPhone XR or not, it will still wait a few months. Even if in the future we will not be able to obtain the number of sales of each product of the mark to the apple. Apple prefers to communicate on its turnover rather than its sales volume. What, precisely, can be avoided this kind of stalls on the stock market.