The success and end of the iPhone XR

On December 24th, Counterpoint released a report announcing the 10 best-selling smartphones in the world for Q3 2019, with the iPhone XR at the top of the list with a 3% market share. This means that since the Q4 in 2018 (the iPhone XR was launched in 2018 Q3), the iPhone XR has been the most popular model in the world.

Let’s take a quick look at the 10 best-selling smartphones in the world for Q3 2019:

The success and end of the iPhone XR

In addition to the iPhone XR, the iPhone 11 also tops the 2019 Q3’s top 10 best-selling smartphones with a 1.6% market share. But with the phone almost mid-September, it’s in fifth place.

The second-best-selling model was the Samsung Galaxy A10 with a 2.6% market share, while the third and seventh-ranked models were Samsung phones, the Galaxy A50 and the Galaxy A20, respectively.

OPPO’s results are also very bright, the three mobile phone models on the list are OPPO A9, A5s, A5, ranked fourth, sixth and eighth.

Red Meter 7A and Huawei P30 ranked ninth and tenth, with a market share of 1.2% and 1.1%, respectively.

Interestingly, of the 10 phones above, all but the iPhone XR and OPPO A5 are “older models” for q3 2018, and the rest are new phones released in 2019. That said, even if the iPhone XR was launched last year, its competitiveness was not affected by this factor.

Hard soft power

Shortly after the iPhone XR was launched, its strong sales growth was beginning to show. In November 2018, Greg Joswiak, Apple’s vice president of product marketing, told Reuters that the iPhone XR was the most popular iPhone at the time. Fortune even called the iPhone XR “the most expensive Apple phone ever to start with.”

In fact, it’s not unreasonable for the iPhone XR to get such a high rating – whether it’s hard power or soft power, the iPhone XR is “online.” (See Lei’s previous report)

Let’s start with the hardware aspect. The iPhone XR, like the iPhone Xs series, is powered by the A12 Bionic chip, the first 7nm chip to be used on a smartphone. Even now, more than a year after its launch, the A12 chip is “ready to hit.”

The success and end of the iPhone XR

According to Apple’s presentation at its fall 2019 launch in September 2019 (above), the iPhone XR (A12 Bionic) released in 2018 is still better than Samsung’s Galaxy S10 with SnapDragon 855 in February 2019 and Huawei launched the Kirin 980 P30 in April. This partly explains the strength of the A12 Bionic.

In terms of features, features such as FaceID, Animoji, Bluetooth 5.0, NFC, rear camera depth-of-field control and front-facing camera stabilization are not absent from the iPhone XR. What’s more, the iPhone XR is the first dual-card dual-card phone in Apple, and only Chinese users can enjoy dual SIM cards.

In addition, the iPhone XR is significantly better than its predecessor. With wireless peripherals, talk can last up to 25 hours, Internet access for up to 15 hours, and video for 16 hours.

The price reduction strategy is really fragrant

What’s more, the iPhone XR starts at Rmb6,499, which is really priced at a premium price to the iPhone’s tens of thousands of high-end models, just as its name implies – “R” stands for “Reach” for an abbreviation. Apple wants the phone to reach consumers faster. And the iPhone XR has been cutting prices since its launch, and the iPhone XR is now starting at $599 (about 4,300 yuan) when the iPhone XR is logged on to Apple’s official website.

On the other hand, in the overall smartphone market environment, more and more mobile phone manufacturers are beginning to rush into the high-end segment. This phenomenon is already evident in 2018.

The 2018 Q2 High-end Smartphone Market Report by CounterPoint (By Thunder: Point values high-end smartphones as phones worth $400 / RMB2800 and above) Has grown 7% in Q2, the global high-end smartphone market, which already accounts for one-fifth of the global smartphone market. These growths were mainly due to the strong performance of Chinese smartphone makers in high-end shipments.

And Apple seems to be aware of this, perhaps responding positively to the launch of the cost-effective iPhone XR in the 2018 Q3. Of course, Apple’s price-changes do bring a sweet spot to it.

The success and end of the iPhone XR

另外,根据 CounterPoint 发布的 2019 年 Q1 全球高端智能手机市场报告(上图),三星凭借着在 2019 年 Q1 推出的三款 Galaxy S 系列手机,在该季度占据了全球高端智能手机市场中占据了四分之一的份额;华为的 P The series also helped it gain a 16% share of the global high-end smart market and, for the first time, upended Apple’s dominance in the Chinese market.

In every measure, competition in the high-end smartphone market is intensifying. While the iPhone has a bit of a “luxury in-the-box” connotation compared to other phones, the iPhone XR has been priced close to some Android models as the price has been cut, much closer to the iPhone.

The relay of the iPhone XR

In November 2019, Apple unveiled three phones at its fall launch, including a new iPhone 11 similar to the iPhone XR’s location;

What’s more, it starts at $699 (about $4,900), $50 less than the iPhone XR, which was previously known for its price/performance ratio. This means that while Android is moving toward the high-end segment, Apple continues to adopt a “enemy into me” price-cutting strategy.

Sales of the iPhone XR fell in 2019 as a result of the new iPhone 11. According to market research firm CIRP:

Q2, the iPhone XR accounted for 48% of total iPhone sales in the quarter, the highest quarterly sales since the iPhone 6 was released in 2015.

Q3, iPhone XR fell to 36% of total iPhone sales in the quarter in 2019; iPhone 11 accounted for 9% of sales of the three new phones, and the iPhone 11 Pro And iPhone 11 Pro Max accounted for 6% of sales, respectively. and 4%.

According to Yiyi Wu, senior analyst at Strategy Analytics, the iPhone 11 has partly inspired buying enthusiasm by ditching the suffix (R) that consumers consider “cheap” phones. And now that the price of the iPhone XR is nearing its bottom (about 4,300 yuan), consumers may be more willing to buy the iPhone 11, which has a small price tag but has many major upgrades.

That is true. After the iPhone 11 series was launched, iPhone sales in the U.S. and India were higher than in the same period last year, and the same was true in China, where sales of the iPhone 11 rose 335 percent year-on-year on the first day of pre-sale, while pre-sale sales in rose 480 percent year-on-year, according to the Beijing News. (Compared to the iPhone XR in the same period last year).

The success and end of the iPhone XR

the iPhone 11 ranked first in September phone sales in with about 383,000 units, twice as many as the second-ranked iPhone XR

And there was news from October 1, 2019 that Apple had increased its order for the iPhone 11, withmedia Nikkei Asia Review reporting that Apple had asked suppliers to increase production of the iPhone 11 by about 10 percent, meaning the iPhone 11 would increase production by 8 million units. Cowen, a financial services firm, also expects higher-than-expected Q4 iPhone 11 shipments in 2019. (See Lei’s previous report)

Lei Feng Net Summary

All in all, the iPhone XR’s strong performance was a record-breaking, and its birth means Apple is starting to think about the rising price of the iPhone, breaking apple’s “noble” posture as usual.

However, the highlight of anything will be a distant day, and for now, the iPhone XR has done its job, and its successor, the iPhone 11, will continue to move forward in the increasingly competitive high-end mobile phone market.

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