Apple iPhones to get cheaper in some countries

Business

30 Jan 2019

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.

Reason

Reason behind fall in revenue

Reason behind fall in revenue

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.

Problem

Apple's solution for weakening 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.

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Details

Now the company will absorb price changes

Now the company will absorb price changes

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.

Apparently, the work has already started

"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.

Possibility

What this means for buyers in India?

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.

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Most asked questions

When Apple make iPhones cheaper in India?

By how much Apple will make iPhones cheaper in India?

How much did Apple generate this quarter?

What about the revenue from services business?

More questions

When Apple make iPhones cheaper in India?

Asked 2019-01-30 14:04:33 by Aanya Patel

Answered by NewsBytes

As of now, there's official word on when or if Apple will make iPhones cheaper in the Indian market.

By how much Apple will make iPhones cheaper in India?

Asked 2019-01-30 14:04:33 by Hansika Shah

Answered by NewsBytes

It is not yet clear. In fact, we still don't know if Apple will actually go ahead and change the prices of iPhones in the Indian market.

How much did Apple generate this quarter?

Asked 2019-01-30 14:04:33 by Aradhya Venkatesan

Answered by NewsBytes

In 2019 Q1, Apple posted total revenue of $84.3 billion.

What about the revenue from services business?

Asked 2019-01-30 14:04:33 by Ajay Mehta

Answered by NewsBytes

As per Apple's report, the services revenue reached an all-time high of $10.9 billion, up 19 percent over the prior year.

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