Apple in response to weaker sales outside the United States plans to cut the prices of its flagship iPhones, it is the second time in Apple’s 12-year history that Apple is revising iPhone prices amid weaker sales outside the United States.
Apple sales are weaker not only in the United States but also in other markets especially China, Apple has made this move to stem its sales, particularly in China, 10% US dollar increase in China over the past year has made Apple products even more expensive for the market.
Apple’s CEO Tim Cook has unveiled the plans on Tuesday after acknowledging the first-ever dip in iPhone sales during the key shopping period. The company previously cut iPhone prices in 2007.
Apple is definite about China but the company has not yet disclosed which countries it would take on with its revised prices. However, the retailers in China have already started cutting prices of the iPhone earlier this month.
iPhone prices are way too much than rivals, the base model iPhone XS launched in September costs $999. iPhone prices mainly worked for US consumers but that was also in question, however, the countries like China where the price of the dollar has been increased as well, Apple iPhone prices are not compatible with better sales.
Tim Cook said in a statement, Apple will revise the iPhone prices in some markets and try to bring it to the prices one year before in local currencies; this indicates that Apple will adjust the dollar exchange rate effects from the prices.
Apple discussed the major markets including Turkey, Brazil, India, Russia, and China where the dollar has appreciated. In Turkey, the dollar appreciated 33% resulting in increased iPhone prices in the country, Apple sales in Turkey were dropped by $700 million as compared to the previous period. Apple’s Chief Financial Officer (CFO) Luca Maestri said Apple will not extend price adjustments in the Apple Store and Apple Music. He also said slower growth was mainly due to increased dollar pressure in non-US markets.
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