Apple Corporation is re-launching the Apple iPhone X smartphone, which was officially released last year. For the company, this is an established practice. Apple has previously resumed its legacy iPhones in select markets as long as there is strong demand.
For a US manufacturer, this is another way to improve margins and sales as older models are cheaper to manufacture.
The news about the re-launch of the Apple iPhone X comes amid reports that the latest iPhones lineup in 2018 has declined due to lower consumer demand. In parallel, the resumption of production of last year's iPhone X is associated with the company's current obligations to purchase components, including a contract with Samsung to supply a large batch of OLED matrices used in the 2017 iPhone X smartphone.
In addition, in Japan, which is considered one of the main markets for Apple, the Apple company has a policy of subsidizing local sellers to reduce the cost of the budget version of the iPhone XR. Such actions are also not a novelty for the American manufacturer, the company has already practiced this, however, experts point out directly the fact of a price reduction literally in the first month of sales, which is considered a rarity not only for Apple, but also for any other participant in the smartphone market.
Apple's latest November financial report was a disappointment for investors. For the first time after a long-term unchanged capitalization of more than $ 1 trillion, the company's value lost about $ 200 billion in a month. According to Bloomberg, Apple is currently capitalizing about $ 840 billion.
In the expert environment, the low demand for a new line of iPhones is also explained by the secondary nature of new products. Researchers call the iPhone XS and iPhone XS Max modified and more expensive versions of the 2017 Apple iPhone X smartphone. For this reason, consumers don't see the point in replacing last year's model. As one of the long-term forecasts, experts call a further loss of interest in Apple devices due to the inflated cost and loss of product revolutionary. High prices make iPhones lose out to competitors in fragile economies where consumers opt for cheaper smartphones.
The Topic of Article: Apple relaunches production of last year's iPhone X.