iPhone XS Max Sales To Lose Momentum In Q4 Due To High Pricing

Since the release of the iPhone XS and iPhone XS Max, the two smartphones have been enjoying slightly strong demand from consumers. However, supply chain sources from Taiwan believe that the sales of the two will very likely lose momentum in the final quarter due to their expensive price tags.

Digitimes reported Wednesday that sources from Taiwan’s supply chain are anticipating a slowdown in the new iPhones’ sales in late 2018 once the initial fanfares for the iOS 12-running flagship handsets die down. The slowdown is likely to be caused by the high pricing of the devices, especially the larger OLED model.

Apple analyst Ming-Chi Kuo revealed on Monday via MacRumors that the new iPhones performed well during the weekend following their launch. Kuo pointed out that the iPhone XS Max performed better than its smaller sibling and that the 256GB variant was the most popular model among consumers.

Kuo also indicated in his research note that the 512GB model of the new iPhones will experience a serious shortage soon because Samsung is the only one that can ship NAND Flash well. The analyst then claimed that given the initial performance of the iPhone XS Max, its shipments will likely grow in the fourth quarter.

However, the Taiwanese sources do not agree with Kuo’s prediction because for them the new iPhones are not perfomring impressively when compared to the iPhone 6 generation from four years ago. They also claim that many consumers are not enthusiastic about the iPhone XS due to its lack of specification upgrades, and the iPhone XS Max due to its high pricing.

Should demand for the iPhone XS and iPhone XS Max significantly diminish, Apple could end up reducing its orders to supply chain makers just like how it remedied similar situations with the previous iPhone installments. Apple suppliers who invested in facility upgrades would also be seriously affected by the anticipated slowdown.