According to a recent report by The Wall Street Journal, the weak sales of iPhone XS and XS Max convinced Apple to resume production of the iPhone X.
Apple’s OLED-equipped devices do not sell well
The company’s move is motivated by an agreement that it made with Samsung to buy a certain number of OLED screens. Due to the fact that this year’s devices equipped with such screens are not selling well enough to fulfill the terms of the agreement, Apple had to turn its attention again to iPhone X, which it stopped producing with the moment of the launch of iPhone XS.
iPhone X is cheaper to produce than this year’s models
One of the reasons as to why Apple decided to go back to iPhone X is the fact that the cost of producing this device is lower than it is in the case of iPhone XS and XS Max. The report stated that, because iPhone X is older, its manufacturing equipment and components are cheaper. We were able to see similar moves in the past, when demand for the legacy models was justifying their production for certain markets.
Apple’s new iPhones struggle in the market
It was recently reported that Apple decided to cut production orders for its new iPhones, as demand for them is lower than what the company expected. The one that struggles the most in the market is iPhone XR, which is caused by the fact that customers prefer last year’s iPhone 8, a cheaper budget option that is still available. Apple’s previous attempt to create a budget-friendly phone, iPhone 5c, also saw the rise of its sales the year after it was released, as only then most users discovered that this device is available in the market.
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