Apple Inc. (AAPL) is being proactive about disappointing iPhone sales with plans to switch the screen of its budget iPhone XR to organic light-emitting diode (OLED) display starting in 2020, according to a report in The Wall Street Journal.
Currently, the XR, which has a starting price tag of $750 compared to a starting price of $999 for the iPhone XS, is the only new iPhone model that still uses an LCD screen.
Shares of Action Alerts PLUS holding Apple were down 2.24% on Tuesday, Jan. 22.
Recently, Citi analysts published an analysis suggesting that sales expectations for the iPhone XS Max are falling by 48%, forcing Apple to cut production. Citi expects Apple to sell 45 million iPhones in the first quarter, its lowest total since 2012.
Earlier this year, Apple CEO Tim Cook warned investors that the company's fiscal first-quarter revenue would be weaker that previously expected. The company now expects to see sales of $84 billion, short of its previous guidance between $89 billion and $94 billion.
"While macroeconomic challenges in some markets were a key contributor to this trend, we believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, US dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements," Cook said in his letter.