Apple decreases some iPhone prices for its users only for the second time in the history of this device.
Maintaining its retail value to past prices in local currencies outside the United States instead of the rising US dollar.
The move is an attempt to overcome weak sales of the iPhone, particularly in overseas markets such as China, where a 10 per cent rise in the US dollar over the past year or so has brought Apple’s sales down as compared to the rivals are and the iPhone prices are very high.
Apple Chief Executive Tim Cook announced the plan on Tuesday after the company reported the first-ever dip in iPhone sales during the holiday shopping period. The company has made the same decision back in 2007.
Apple has not mentioned the countries in which it would adjust iPhone prices. Chinese resellers already began cutting iPhone prices earlier this month after Apple lowered its sales forecast for the quarter ended in December.
The company priced its new iPhone XS, which was released in September, at $999, the same price in US dollars as its predecessor, 2017’s iPhone X.
“We’ve decided to go back to (iPhone prices) more commensurate with what our local prices were a year ago, in hopes of helping the sales in those areas,” Cook told Reuters in an interview.
A rising dollar hurts Apple iPhone prices:
In the company’s quarterly earnings call on Tuesday, Cook also highlighted the impact of foreign exchange problems in Turkey, where he said the local lira had depreciated by 33 per cent against the dollar and Apple’s sales were down by $700 million from the previous year.
The unit beat the analyst expectations to 10.8 billion sales in the last year 2018. The sales became slow.
Maestri said the decrease in the sale was because of the price increase for the users of non-US markets.
“Roughly 60 per cent of our services business is outside the United States, and as you know, the US dollar has appreciated in recent months,” Maestri said. “And in general, we tend not to reprise our services for foreign exchange on a very frequent basis.”