Apple is exploring new marketing strategies as part of a broader effort to bolster iPhone XS and iPhone XR demand.
According to a new report from Bloomberg, Apple has reallocated staff in a “fire drill” to spark sales of the latest iPhones, which are apparently requiring extra marketing and discounting efforts during the 2018 holiday season.
Over the last few weeks, we have seen Apple unveil new marketing offers for the iPhone XS and iPhone XR. Now, the company is offering additional trade-in credit of up to $300 USD towards the purchase of an iPhone XS or iPhone XR. It also launched a dedicated store for veterans and active military offering discounts of up to 10 percent on iPhones, Mac, iPads, and more.
Apple is currently advertising the trade-in deal on their website’s homepage, with which customers can get an iPhone XR for $449 USD provided they trade in an iPhone 7 Plus or higher. Apple employees have also been told to highlight the new trade-in program to in-store customers, explains the report. In Japan, wireless carriers reduced the price of the iPhone XR by around $100 USD using subsidies to spur sales as it was lagging when compared to the iPhone 8 Plus.
Apple has lost about a fifth of its market value since the beginning of October due to signs of waning iPhone demand, explains the report. Cirrus Logic Inc., an important Apple supplier, cut its holiday quarter sales forecast by 16 percent on Monday due to “recent weakness in the smartphone market.” Apple has also stopped reporting its iPhone sales figures, creating concern that its flagship product isn’t growing.
Additionally, HSBC today downgraded the Cupertino company‘s stock from buy to hold as well as cut its 12-month target price from $205 USD to $200. The note cites over-dependence on a single product against slowing emerging market economies.