Apple hints at lower iPhone prices amid low revenue from iPhone and declining sales

No specifics on when, how or which devices
Iphone XS

Apple shared its first quarter revenue and as expected the iPhone revenue nose dived by 15 percent than the year prior to last year. Apple says the decline in revenue were down to currency fluctuations and declining sales in China. It was also reported that while the revenue from iPhone was down by 15 percent, overall revenue from other services and products was positive with a growth of 19 percent.

Apple missed its annual target by $4 billion with reported revenue of $84.3 billion. iPhone brought in $51.9 billion dollars for the last quarter.

Amid this decline in iPhone revenue, Apple is considering lowering its handsets cost. The rise is dollar’s value means converting the price to the local currencies made the iPhone more expensive, Apple CEO Tim Cook told Reuters.

In markets with currencies that weakened considerably against the dollar over the last year, 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.”. Though he denied specifying which phones will receive the price cut.

Cook also remained coy on when or how often the company will reset its prices because of foreign currencies. According to Cook the emerging markets suffered the most with the dollar’s strength. Apple has also previously cited currency pressure in countries like India, Russia and Brazil.

Apple CEO Tim Cook
Credit: Mashable India

Cook gave the example of Turkey on how currency fluctuations impacted its revenue with Turkish Lira depreciating by 33 percent against the dollar which brought down Apple’s sales by $700 million from the previous year.

He said Apple will be adjusting its handsets’ foreign prices in some markets by ‘resetting them at’ or ‘close to what they were one year before’ in local currencies. Meaning Apple itself will be absorbing wholly or partially the effect of strengthening dollar.

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