Apple To Lower iPhone Prices In Some International Markets As Tim Cook Admits ‘I Do Think Price Is A Factor’ In Declining iPhone Upgrades
Apple shared its first earnings report of 2019 yesterday, and while there were some interesting numbers to come out of it, the most color perhaps came when CEO Tim Cook admitted the possibility that price was a factor in slow iPhone sales.
According to Cook, the belief within Apple is that while price isn’t such a factor in the United States, that isn’t the case in some markets around the world.
This is likely down to the current exchange rate fluctuations that have seen iPhones become increasingly costly thanks to the strength of the US dollar.
“When you look at foreign currencies and then particularly those markets that weakened over the last year those (iPhone price) increases were obviously more,” Cook told Reuters. “And so 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.”
In an attempt to combat that, Cook told Reuters that in come countries Apple has already started to absorb some of the price increase that came about abuse of current exchange rates, and it will also look at lowering the price in some emerging countries. Cook also says that the loss of carrier subsidies is impacting iPhone buyers, with some seeing prices increase dramatically compared to the last time they made a phone purchase.
It’s not clear what Apple’s new pricing structure will be, but if it can seek to reduce the impact exchange rates have on international iPhone prices, that will surely go some way to returning the iPhone to its former, crowd pleasing glory.