Apple iPhones could get cheaper in some countries: Details here
Just a few hours ago, Apple reported its Q1 earnings with a decline in the revenue from iPhone sales. The company didn't give exact numbers but claimed the revenue from iPhones, a key driver of its hardware business, fell by as much as 15% over the last year. Now, owing to this slowdown, it is considering making iPhones cheaper in some markets. Here's more.
Though Apple's revenue from services and other products grew, the decline of iPhone sales plagued its growth, leading to a 5% decline in overall revenue. This, as the company claimed, largely stemmed from the economic slowdown in China due to "rising trade tensions" with the US. Notably, Apple CEO Tim Cook also attributed the decline to the strengthening value of dollar in some markets.
Owing to the currency fluctuation, Cook said, some markets with weak currency saw a drastic increase in the price of iPhones. "When you look at foreign currencies and then particularly those markets that weakened over the last year those (iPhone price) increases were obviously more," he told Reuters. As a result, he said, Apple is now reconsidering its pricing strategy.
Cook explained the impact of price discrepancies by noting the example of Turkey; its quarterly revenue there declined by $700 million due to the falling value of the Turkish lira. He said emerging markets were most prone to these discrepancies, which is why the company has decided to absorb "part or all" of the foreign currency price changes to keep the prices in check.
"As we've gotten into January and assessed the macroeconomic condition in some of those markets we've decided to go back to more commensurate with what our local prices were a year ago in hopes of helping the sales in those areas," Cook added.
Just like Turkey, the Indian rupee has also weakened against the US dollar, and the prices of iPhones have sky-rocketed. Hope is that India will be one of the target markets where Apple would reconsider its pricing strategy and make some, if not all, iPhones a tad cheaper. But, as of now, there are no exact details to be sure.