The past two days in the tech world have been all about Apple Inc. (NASDAQ:AAPL). The company has just announced three new variants of the iPhone X; namely iPhone XS Max, iPhone XS and iPhone XR. All these new variants announced are official replacements to the original iPhone X. Apple pulled its ‘revolutionary’ iPhone X from their stores immediately after the above announcement, along with the iPhone 6S and the iPhone SE. Now the question begs: Will it achieve the amount of success achieved by its predecessor?
Apple’s decision to kill a model as recent as iPhone X might have a lot of implications, a detailed review of which you can find here. On top of that, out of the new variants, iPhone XS Max has got the most people talking about it. That is mainly because of its price tag of $1,099, making it the most expensive iPhone in history. But regardless of all these ‘hindrances’, Apple is set to take strides forward yet again commercially.
Digitimes Research estimates that the shipments of the three new iPhones will cross 85 million units in the second half of 2018. On top of that, the total shipments of iPhones, including the previous generation devices, are expected to surpass 127 million units in H2 2018.
Apple is all set to achieve a total iPhone revenue of over $100 billion in the second half this year. This represents a significant 10% increase in revenues from the previous year, signifying their progress. Therefore, it successfully shows that Apple’s controversial decisions do end up profiting the company an awful lot.
Sales of iPhone XR Will Make It the Best-Selling iPhone
As mentioned earlier, the features of the new variants have been pretty much in the news, one of the more startling ones being the lack of the headphone adapter. When put in comparison with each other, a lot of the features in each phone turn out to be the same. But even then, there are certain distinguishable features among them. Many conclusions have been drawn after the analysis of the features of each variant. But one of the more universal ones of them is that the most well-balanced smartphone among all 3 is the iPhone XR. Despite the price tagged with almost $250 less than the other two new variants, iPhone XR successfully boats of a little bit of everything from iPhone XS and XS Max. Therefore, it is safe to assume that it will be the smartphone which will be most in demand, especially among the lower and mid-range smartphone buyers.
The information gathered regarding the supply chain of each variant tell the same story as well. It is estimated that the sales of iPhone XR will account for more than 50% of the combined sales of all three new iPhones. This is despite the fact that the availability of the iPhone XR is about a month later than the other two variants. While iPhone XS and XS max are scheduled for availability from September 21, the iPhone XR will be available from the 26th of October.
As compared to China-based rival vendors, which have been aggressively ramping up shipments, Apple has never engaged itself in pricing competition to shore up its unit shipments, and instead has been focusing on achieving sustained growth in both revenues and profits, Digitimes Research says.
Apple: More of the Same Or Something New?
The decision of the Cupertino giant to kill the iPhone X and release three new variants hasn’t been met with much fervour everywhere. Certain companies like Goldman Sachs have already cut the profit estimates of the company after their recent announcement. But Apple isn’t a stranger to this anymore. Their products have managed to perform well most of the time despite all the speculation around them, be it positive or negative. And, to be honest, I don’t see this time being any different from the rest.