Apple is a great company with many high-tech products but its problem has always been its pricing. Last year, the company released the 2018 iPhones and these smartphones have not performed as the company expected. Many analysts now predict that if the prices remain the same, the demand for iPhones will continue to drop. Apple’s financial report shows that its Greater China revenue was $13.169, down 26% from the same period last year.
At the end of today’s financial report presentation, Tim Cook, Apple’s CEO said in an interview that in order to alleviate user’s anxiety about high selling prices, the company has decided to implement a price reduction policy in some specific countries. Actually, the price of the iPhone will be determined by the local currency in each market. Cook stressed that in the market where the currency depreciated in the past year, the iPhone price increase was significantly larger. Apple evaluated the macroeconomic environment in some of these markets and decided to make the iPhone price more consistent with a year ago so as to increase sales in these markets.
In fact, from the above description of Cook, Apple is starting to boost sales at the expense of profit margins. Of course, in the long run, the trend of price increases for Apple products is unstoppable. What is unclear is how much the iPhone price will change and which prices will change. So it is advisable to watch out for possible iPhone price reduction in your region.