Early sales of iPhone XS and XS Max below Apple's peak levels, expected to slow down

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With the iPhone 6 (and especially the iPhone 6 Plus) Apple made the move to larger screens, a move that proved wildly successful. The XS generation also bumped the screen size, but the chatter from the supply chain indicates that Apple will not be able to recreate the success.

The first wave of sales of iPhone XS and iPhone XS Max wasn’t as hot as the sales of the iPhone 6 duo. Insiders have attributed this to the high price of the more desirable Max model and the relative lack of upgrades of the XS.

Some see the slower early sales as a sign that future sales will fall below expectations. If that happens, Apple will reduce the order volumes for the XS phones the same way it did for the iPhone 6s and 7.

The iPhone XR will launch in October and opinions on its success are divided. Some

analysts think it will succeed, but insiders from the supply chain think XR’s features don’t compare favorably against high-end Androids.

The Chinese version of the iPhone XR will have a dual SIM slot, a feature popular in China and a first in the Apple lineup. However, if the US-China trade war intensifies, this may not be enough to boost its sales.

Apple is already dealing with lower sales of the iPhone 8 and X compared to the iPhone 6 generation, so its bottom line may hold still going into next year. However, some component suppliers are already starting to feel the pain of lower than expected order volumes with lower net profits.

For example, Foxconn’s profits for the first half of 2018 fell 9.42% compared to last year). Foxconn will be making the XR. TSMC (which makes the A12 Bionic chipset) and Largan Precision (which makes camera modules) are doing well, however.

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