iPhone X was widely expected to be a massive hit on the sales chart even before the smartphone could see the light of the day. And the very moment, Apple unleashed the much talked device at the iPhone event, many thought the charismatic charm had once again returned to the iconic smartphone. But as the euphoria paved the way for reality most of us were left wondering what took the sheen away from the iPhone!
The news has it that Apple has halved the production target for the iPhone X in the three-month period from January. From over 40 million units envisaged at the time its launch, the tech giant is said to keep the production at around 20 million units in the wake of much-weaker sales in the year-end holiday shopping season in key markets such as Europe, the U.S., and China.
Why iPhone X Sales Declined?
So, what has hurt the sales of iPhone X? Well, multiple factors seem to have gone against the smartphone. But the one that has apparently triggered the failure is the hefty price.
The company now faces a pricing dilemma. If the tech giant reduces the price of the premium smartphone, the move may wound its reputation. And if the company keeps the lofty price intact, the sales would continue to plummet sharply.
Worse, the demand for iPhone 8 and iPhone 8 Plus hit rock bottom within a month of their release. Evidently, nobody wants to have those offbeat smartphones as they look pale in comparison.
“Apple created the pricing problem when it bifurcated its product line into two sets of phones—the ho-hum iPhone 8 and iPhone 8 Plus and the innovative iPhone X priced at a huge premium. The move has clearly backfired: The bragging rights for the iPhone X aren't attracting enough customers, while the iPhone 8 and 8 Plus pale in comparison to the X's innovative features like Face ID and OLED screen.” – Fortune
“We balance our positive view on longer-term iPhone revenue growth … with weakening near-term datapoints on iPhone X demand, which we think will likely weigh on shares ahead of the FQ2 earnings report. Not so super cycle keeps us on the sidelines.
In particular, we see the downside to consensus iPhone revenue forecasts in the June quarter and believe shares are unlikely to outperform while the risk of estimates revisions remains.” – Analyst Rod Hall wrote in a note to clients. CNBC
The flagship device does have the looks to steal the eyes. And the features like Face ID, Animoji and OLED have been able to catch quite a lot of attention. But they haven’t turned heads or compelled fans or prospective buyers to cough up $1,000.
Many argue that Samsung Galaxy devices have boasted OLED display, facial recognition technology for quite some time and are readily available at a much lower price. Of course, the Face ID is still unmatched, and it will take at least a year or two for Android smartphone makers to have such a robust technology. But beyond that, the luxurious smartphone doesn't have much to offer.
A couple of months back, an iPhone X user had said this at a forum, “Even after paying $1, 000, I can't turbocharge (fast charging) my smartphone directly as I need to spend around $50-$70 more to buy the USB C to Lightning cable and USB C adapter. Today, even a $300 smartphone comes with fast charging and the manufacturer offers the accessories without any extra charge. Apple, you are pricking both my pocket and patience!”
Is there anything more to say after the above…? Well, it pretty much sums up quite a lot of story!