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A new study has confirmed fears of disappointing demand for Apple’s newest entry-level iPhone.
The iPhone XR — this year’s cheapest model despite being priced at a stiff $749 — accounted for 32 percent of the iPhone market during its first month in stores, according to a study released Wednesday by Consumer Intelligence Research Partners.
That’s significantly lower than the 39 percent share captured by the comparably priced iPhone 8 and 8 Plus during the similar period last year, the study notes.
It’s also just 2 percent ahead of the share last year’s iPhone X had grabbed — despite the fact that prices for the X started at $999.
This year’s top-tier iPhone XS and XS Max models, which start at $999 and top out at a whopping $1,449, meanwhile took a 35 percent share of the iPhone market in the month following the cheaper XR’s release.
Sales of the XR have been a thorn in Apple’s side since it hit stores in late October. The Cupertino, Calif.-based company has seen its stock drop more than 30 percent as numerous parts and chip suppliers for the iPhone have slashed sales forecasts.
The tech giant has gone as far as assigning members of its marketing team to work full-time on boosting sales, and has upped the amount it is willing to pay for devices traded in toward the purchase of a new iPhone, according to a report earlier this month.
As recently as Wednesday, Apple was blasting out emails to shoppers that advertised the XR at $449 — provided customers trade in an older device.
On the positive side, the study found that Apple is convincing more Android users to migrate to iOS. This year, 82 percent of iPhone purchasers upgraded from an older model, while 16 percent made the switch from Android.
Last year, iPhone loyalists made up 86 percent of upgrades, while only 11 percent of buyers were previously on Android.
“It appears that iPhone XR did serve to attract current Android users,” CIRP co-founder Mike Levin said. “Of course, Apple doesn’t just state plainly its launch strategy. But based on the pricing and features, we can infer that Apple positioned the iPhone XR to appeal to potential operating system switchers.”
Apple shares climbed 7 percent Wednesday, finishing the day at $157.17.
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