Apple is reportedly preparing to offer subsidies to Japanese sellers in an effort to boost iPhone XR sales.
That’s according to a new report from the Wall Street Journal, which that explains the iPhone maker will offer subsidies to mobile network operators in Japan, hoping that it will increase sales of the “budget” device.
Japan’s major carriers plan to cut the prices as early as next week, reads the report, citing unnamed sources with “direct knowledge of the plan.” The extent of the planned subsidies for the iPhone XR isn’t clear.
While price cuts from Apple are certainly rare, especially in a device that’s been available to the public for less than a month, they aren’t unprecedented. The Cupertino company has previously used price cuts for certain devices targeted at specific markets in which said device might be underperforming. Apple would certainly not cut the price of a product worldwide, but only in certain geographic regions.
Even so, it’s not a good sign for Apple to be approving price cuts in Japan, a market in which the iPhone has a strong command of the smartphone market. While this still might be the case, Japanese customers might be favoring the cheaper iPhone 8 models as opposed to the iPhone XR.
Additionally, WSJ reports that Apple is restarting a limited production of last year’s iPhone X “due in part” to meet minimum order requirements of OLED display panels with supplier Samsung Display. Apple has done so before earlier this year with the iPhone 6S to meet the demands of the Indian market.
In related news, earlier this week the WSJ reported that Apple had cut production orders in recent weeks for all three iPhone models launched in September.
