Apple starts selling the unlocked version of iPhone XR

Donna Miller
November 16, 2018

Investors are concerned that Apple Inc may have gone the wrong route in focusing too much on luxury phones, several of which cost more than USA $1000.

There are many phones in the market that are comparable to costly iPhones but are selling for around half the price, such as the OnePlus 6T, made by Chinese firm OnePlus.

The chief economist for Apple shareholder Capital Investment Counsel, Hal Eddins, says, "You can get a lot of phone for a lot less".

Apple, however, argues that its high satisfaction and loyalty rates make it stand out in the industry.

According to IDC, except for fiscal 2015, Apple has not increased its market share. For starters, you'll have to open up a new line of service with the Uncarrier. The company's strategy in India rivals that of leader Xiaomi, which offers entry-level and mid-range smartphones while Apple sells iPhone with six-digit price tags.

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Xiaomi, in particular, is gaining fans rapidly. Apple is also facing stiff competition from Chinese smartphone makers like Xiaomi, Huawei, OnePlus. Furthermore, Xiaomi is breaking new ground in Spain and in other parts of Europe. And iPhone suppliers Lumentum Holdings (LITE) and Japan Display (6740.Japan) also lowered their financial forecasts on Monday, prompting a selloff in the stocks of Apple and its suppliers. The stock is now down about 8 percent since its November 1 earnings. Apple analyst Ming-Chi Kuo added that the Cupertino-based iPhone maker has slashed production of iPhone XR by 30 percent due to lower demand. But they range up to $1,449 in price - out of reach for many consumers in less developed markets.

It has also emphasized that its phones are created to last longer than the competition, expanded its fix options and crafted its most recent operating system update to speed up older devices.

Chinese smartphone makers have in turn designed their phones with sleek, high end, high tech features that compete with iPhone's pricey models.

Those manufacturers are increasingly adopting Qualcomm Inc's QCOM.O most powerful mobile phone chips, said Cristiano Amon, the head of chip operations at the USA chipmaker, which is locked in a bitter court dispute with Apple. She predicts that the services segment, which includes the App Store, Apple Music, and Apple Pay, will grow to 25% of the company's sales and 36% of profits by fiscal 2022, versus 15% of revenue and 21% of profits today.

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