Apple has unveiled its iPhone line for 2018, and all models are quite impressive. While sales of the two more expensive handsets — the iPhone XS and the iPhone XS Max — are reportedly encouraging, the iPhone XR, Apple’s “entry-level” iPhone, could very well prove to be the device that pushes Apple’s revenue forward in the coming quarters.
According to a report from DigiTimes, Apple is expecting to see shipments of the 6.1-inch LCD-equipped iPhone XR to start gaining ground in October, when the Cupertino-based tech giant’s supply chain is expected to ramp up production to 20 million units. The publication — which has a mixed predictive track record so far — has also noted that the ratio of iPhone XR orders to Apple’s total orders of new iPhone devices for December has been revised upward to over 50%, according to sources within Apple’s supply chain.
This means that Apple is expecting the iPhone XR to be the device that will sell the most number of units in the coming quarters. In a lot of ways, it is quite easy to see why. The iPhone XR might feature an inferior LCD display compared to the iPhone XS and iPhone XS Max, but it is by far the most affordable device in Apple’s lineup, starting at $749. For that amount, the iPhone XR packs in a lot of functionalities and features that are very similar to its more expensive siblings. Among these are a notched design, FaceID, and even Portrait Mode — which used to be exclusive only to iPhones equipped with a dual camera sensor.
Apple’s strategy for the iPhone XR is quite clever, the company targeting its broader user base that is looking to upgrade from older handsets like the iPhone 6S and iPhone 7. By adopting a notched, Face ID-enabled design, Apple is offering iPhone users who have not upgraded their device in years an “affordable” way into the company’s updated lineup. In this sense, it would not be surprising if the iPhone XR ends up selling as much as the iPhone XS and iPhone XS Max combined.
Even without the iPhone XR, sales of Apple’s iPhones have reportedly started to increase substantially. According to a Mashable report, initial sales estimates from Apple analyst Ming-Chi Kuo suggest that the iPhone XS Max is outselling the smaller, more affordable iPhone XS by three to four times. Kuo, who has a formidable analytical resume when it comes to Apple devices, also notes that the demand for the iPhone XS Max is proving to be “better than expected.”