Apple May Be Working on a Cheap Successor to the iPhone XR

Apple’s (AAPL) iPhone shipments seem to have shrunk dramatically in the last couple of quarters. The main factors behind the shrinking shipments are consumers’ balking at sky-high iPhone prices and customers’ hanging onto their phones for longer than they used to.

Earlier this year, the company slashed prices on some of its newest models in India, China, and Japan in order to boost its sales.

According to a report by Business Insider, Apple is planning to launch an iPhone that costs less than $1,000. According to the report, Apple is preparing to launch two high-end models of the iPhone (like last year) and a cheaper successor to the $750 iPhone XR.

The iPhone XR’s successor is likely to have a dual camera like the iPhone XS and the XS Max already do. However, it’s likely to be stuck with a liquid crystal display screen this year as well. However, Apple’s entry-level iPhone in 2020 is likely to come with an organic light-emitting diode screen, according to Ming-Chi Kuo, analyst of all things Apple.

Despite the tech behemoth’s efforts to improve its sales, it may continue to struggle to grow its iPhone revenue for the time being given the above-mentioned factors and the stiff competition it faces, especially from cheap Chinese smartphones.

As a result, the company is trying to focus more on its Services segment, which still makes up only ~16% of its overall sales. With that said, the stock has held up quite well this year, climbing over 25%.