Apple to lower prices in some countries after the slump in iPhone sales
Apple CEO Tim Cook revealed that the company is reconsidering its pricing for iPhones in some markets outside of the United States to after sluggish sales in China and other regions during the crucial December quarter. Cook says iPhone will only lower prices in certain currencies that were most impacted by currency fluctuations.
The announcement was made following the release of Apple’s earnings report on Tuesday, and there were some interesting numbers to come out of it. Apple announced that its iPhone revenue from its most recent holiday quarter fell 15 percent from the previous year’s holiday quarter. The company posted $51.9 billion in iPhone revenue in the important holiday quarter. In the same period a year earlier, iPhones made $61.1 billion.
“While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,” the CEO said.
However, Tim Cook admitted the possibility that price was a factor in slow iPhone sales. He said a strong dollar, which makes its products comparatively more expensive, had hurt its sales in emerging markets around the globe. “The belief within Apple is that while the price isn’t such a factor in the United States, that isn’t the case in some markets around the world,” he added.
Apple also blamed the ongoing U.S. trade war with China, which has cost them a significant drop in revenue in China. After the economic slowdown, the reported revenue generated in China in December Quarter was $13.17 billion, down from $17.95 billion in the same period a year ago.