iPhone XR Apple’s strategy disrupt self with features and price before others do, says analyst

From IHS Markit – an interesting look with a different approach where Apple has with iPhone XR. Thus the firm sees a new 6.1-inch model as a proof. This is where Apple acknowledges many consumers which did not pay $1,000-$1,450 for iPhone.

Wayne Lam, IHS Markit’s analyst shares a note of iPhone XR this morning.
Lam believed the design and feature choices of Apple with the $749 XR. This is where the company admits the performance and features of the XS and XS Max which overkills market demands.

What Apple has done is with the iPhone XR design implicitly acknowledges a decade launch. This is where a new iPhone designs with high-end smart-phone models reaching a point with performance and feature sets with market demand for them.

Lam notes Harvard business professor, Clayton Christensen’s book – “The Innovators Dilemma and his theory on disruptive tech”, has a visual on the flagship iPhone demands shifted.

From his business theory, we see iPhone product line progressive so far in the marketplace with over-shot of the performance level high end of the market.
In the diagram below, Apple is the “sustaining technologist” and the iPhone Xs and Xs Max representing the progress above the market upon demand line.

The analyst thus notes, mention still, of course, worthwhile for Apple makes high-end iPhones, where Lam says that the XR is Apple’s way having an opportunity to.
While going still strong demand for premium smart-phone products, the marketers at Apple has most consumers not follow Apple into the high-end pricing territory of the new iPhone Xs. The iPhone XR designs reflect the fact, exposes Apple’s attempt disrupting self before others disrupt.

Lam concludes a belief for Apple on with its iPhone success, realizes a need which rethinks featuring and performance levels most important to the average user. He notes five aspects where iPhone XR includes the display, camera, 3D Touch, LTE radio, and price.

What is most interesting about iPhone XR features Apple left out as followed:

1. Display size over quality – The design reasons compromise with a selection of an LCD-based 6-inch full-screen display, where the premium OLED display is on the iPhone Xs. However, Apple expends a great amount of effort in creating an LCD display. This is by providing the colour gamut rivalling the best LCD displays. This design choice indicates cannot really tell the difference between various high-end display resolutions and colour reproduction qualities, where there is a large 6-inch design pretty much trumps with all other design considerations.

2. Better camera via computational photography – The iPhone XR equipped instead of a dual set-up of the iPhone Xs. There are two cameras which are clearly better than one. This is where Apple leaned heavily on computation photography with a single-camera system. At the core use of the A12 Bionic processor, there are iPhone Xs models, enhanced with enough computational power.

3. Missing 3D touch, but we hardly knew you – Another design which is compromised where Apple has excluding 3D touch. This new touch interaction mode feature came into the Apple ecosystem. This is with the iPhone 6S, analyzing four years of consumer behaviour data, which is woefully underused. Apple’s answer to insight removes expensive 3D-touch overlay which leverages the haptic motor to mimic 3D-touch interactions in software.

4. LTE speed improvements negligible to consumers – The iPhone XR has the same internals as more premium iPhone Xs series, where the LTE radio in the iPhone XR with CAT-12, has improved gigabit-per-second-capable CAT-16 in the iPhone Xs. Of course, there is a CAT-12 RF front end which is more affordable with the CAT-16 versions. This is with a difference in LTE technology losing on consumers.

5. Pricing sweet spot – Apple relied on last year’s iPhone models making lower-cost models of the current year models, the strategy changed this year. The iPhone XR, however, brings the best of iPhone X and iPhone Xs series designs. This is where the features of the consumers not concerned with.

The result of this market positioned with a new reference point. This is due to the smart-phones ranging at $750 where the premium price point is “good enough” at smart-phone designs. The market, however, chases the capability of flagship designs. This is with prices top at $1000 where the iPhone XR serves consumer masses at a stable price point.

Thus Apple plans is successful so far. We heard this week from Ming-Chi Kuo where iPhone XR better than iPhone 8/ 8 Plus, creates a strong calendar Q1 (Apple Q2) for iPhone sales.