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Japanese Wireless Carriers to Cut iPhone XR Price: report

Japanese Wireless Carriers to Cut iPhone XR Price: report

Smartphones Nov 22,2018 0

Japanese wireless carriers are planning to cut the price of Apple's iPhone XR as early as next week, the Wall Street Journal reported on Thursday.

The iPhone maker will offer subsidies to mobile network operators in Japan to boost the sales of iPhone XR, the Journal reported.

Apple did not provide any comment.

Earlier this week, the WSJ reported that Apple had cut production orders in recent weeks for all three new iPhone models launched in September.

Apple's sales forecast for the Christmas quarter was below, prompting certain suppliers to issue warnings that pointed to weakness in new iPhone sales.

Korean smartphone retailers protest Apple's policies

In related news, smartphone retailers in South Korea are acusing Apple of "unfair" policies, arguing they shouldn't have to pay for iPhones used only for display and other promotional purposes.

The Korea Mobile Distributors Association (KMDA) issued a statement Wednesday, saying Apple's policies contrast with those of other smartphone manufacturers, which provide all smartphones needed for promotional demonstrations at stores and collect them afterward.

"Apple has increased the burden on retailers by pressing them to buy in-store tester iPhones," the statement said.

"Normally, most manufacturers provide all smartphones needed for display, which are collected later. Apple, on the other hand, forces retailers to purchase all the phones used for demonstration purposes," the statement added.

The association said retailers had no choice but to accept this due to the popularity of iPhones.

The KMDA noted that Apple does not allow them to sell iPhones if they do not purchase demonstration devices.

The association also said retailers bear the costs needed to build shelves to display the devices, with Apple to give them strict instructions on the location of such shelves within a store.

The association's members will cooperate with other associations representing retail stores of SK Telecom, KT and LG Uplus to respond to the situation. Taking a joint legal action, including filing a complaint with the Fair Trade Commission (FTC) against Apple, is also a option, KMDA added.

Apple was investigated by the FTC in 2016 for having charged advertising expenses to SK Telecom, KT and LG Uplus and forcing the mobile carriers to assume responsibility for the repair costs of iPhones.

The regulator will make a final decision on action it will take against Apple during a meeting next month.

Tags: iPhone XRiPhone XSiPhone XS MaxApple
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