Poor sales, new iPhone price reduction promotion, Apple or forced to clear inventory

Apple, which was once popular in the market, is working hard to promote the sales of new mobile phones, and spare no effort to push various promotions. Following the subsidy for operators in Japan, which prompted operators to sell iPhoneXR at a discount of 30%, Apple recently launched a new promotional offer on the US official website. Users can redeem the price at a discount: buy the new machine with the old iPhone7Plus for iPhoneXR. The price will be more favorable. Recently, some insiders revealed that Apple is preparing to launch a new production plan, plan to reduce the new iPhone production line, or restart the iPhoneX production plan. The industry believes: "This time Apple adopted a price reduction for some models such as iPhoneXR, because its early expectations are too high, resulting in huge inventory, Apple needs to digest inventory through promotion, etc. Urgent need to clear inventory? At one time, Jobs set off an "Apple fever" around the world. When the new iPhone went on the market, users rushed to the AppleStore to buy, even at high prices from the ox. Today, in order to increase sales, Apple does not hesitate to use a variety of "promotional means." It is understood that Apple recently pushed information to the old iPhone to promote the new iPhone. At the same time, Apple claimed that users can replace the iPhoneXR with the old iPhone, thus stimulating the old users of the iPhone7 to renew. It is considered that "the company is making discount sales and reducing prices in disguise." Apple's move was taken against the backdrop of a decline in mobile phone sales. This year, Apple's iPhoneX, iPhoneXS and iPhoneXR series of mobile phones responded flatly: the first-selling sales were significantly lower than expected, while the third-party platform's initial sales fell below the official price, and the actual sales price in the market was all the way down. The sales of the two new iPhones did not meet expectations in the first week of the IPO. Chinese retailers even sold their products for two weeks, setting a record for the iPhone's fastest price cut. iPhoneXR's first-week sales were 10% lower than expected, and the industry reported that iPhoneXR cut a third of the news. Many Apple suppliers indicated that they have received notice from Apple to adjust production plans. In fact, the crisis in the sales of Apple's mobile phones has already appeared in the past year. The iPhoneX, which was launched, reduced production. Last year's shipments fell by 0.2%, and it was off the shelf early. Sun Yanxi, dean of the First Mobile Phone Research Institute, said that the promotion behavior that Apple took this time was to clean up the inventory under the tremendous pressure of fierce competition in the market. "Apple has raised prices for mobile phones in recent years, but sales have continued to decline. This shows that there are already problems in its strategy. This time, Apple has reduced the price of some models such as iPhoneXR because its pre-expectation is too high, resulting in huge inventory. Apple needs to digest its stocks through promotions, etc. In the long run, Apple's other new models may follow the price cuts, which is the inevitable result of its serious threat to other mobile phone manufacturers." The industry believes that in the face of this year, only less than a month left, Apple realized that this may lead to a significant decline in iPhone sales in the fourth quarter of this year, and then continue to launch price reduction incentives, which is under pressure from performance. The actions made also show their mistakes in pricing strategies. In the iPhone, it was questioned that innovation was insufficient. The iPhoneXR's materials were also referred to as “cheap”. Apple still chose a high pricing strategy, which was widely criticized by the industry and the market. Li Huaibin, senior analyst of IHS mobile phone market, said: "Apple's new mobile phone is more expensive this year, which has a greater impact on its overall sales. Since last year's iPhoneX, sales of Apple's mobile phone have begun to decline. And this year's new mobile phone launched It was only based on last year's continuation, not much change, but the innovation was weak, but it maintained high pricing, which was not recognized by the market. The high price has a great impact on the sales of Apple's mobile phones. The marketing method is actually a price cut to the new model, which is more flexible than the old model. At present, the global smartphone market is in a state of stagnation, and smartphone sales in 2017 are the first annual decline. Industry insiders expect that this year may continue the momentum of last year's decline. In order to win shipments, Android mobile phone companies are constantly launching cost-effective products. Apple has gone against the trend and constantly improved the pricing of the iPhone, which is one of the important reasons why its new mobile phone has not been recognized by the market. Li Huaibin believes: "Apple's move is also to increase customer volume through brand stickiness. From the recent series of actions of Apple, its hardware advantage has been gradually weakened. Domestic mobile phones have grown rapidly, even in some functions. Beyond Apple, the price is much lower, posing a serious threat to Apple. It can be seen that Apple's continued high-price strategy has a side of misjudgment."