Would you believe if India becomes one of the markets which will get a drop in the iPhone price? Hard to imagine let alone believe, but it might become real as per the stated facts below. After Apple released its first-quarter results, many things weren’t found any more good for the Cupertino-based giant. Since the service revenues have gone up, when it comes to iPhone sales, they have been declining continuously (especially in Indian market), with a fall in the profits by 15%.
If we compare the overall revenue by Apple a year ago, it went 5% lower to almost $84.3 billion. Moreover, Tim Cook stated that consumers had been struggling because of the high iPhone prices and this is the main reason behind the dip in sales.
Also, Tim Cook, in an interview with Reuters, stated that a few currencies have also experienced more price increase when it comes to iPhones. He said, “When you look at foreign currencies and then particularly those markets that weakened over the last year those (iPhone price) increases were obviously more.”
He added, “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.”
Moreover, Cook also mentioned during the earnings call of the company that as the US dollar has strengthened, the products by Apple went expensive across the globe too. He took the example of Turkey, where lira, in 2018, had depreciated more than 33 percent. Also, when it comes to revenue, in the past quarter, it went down by around $700 million as compared to the previous year. Other than that, the latest iPhone models have experienced huge price discrepancies in about all the emerging markets.
Tim Cook stated, “Apple is rethinking how it prices iPhones, and that it won’t track the US dollar price exactly. Instead, the company will set iPhone prices in local currency for every market.”
He also added, “Apple will lower iPhone prices in certain markets outside of the United States.”
However, Tim Cook hasn’t named any particular markets which will be seeing the drop in iPhone prices. But there are huge chances of India to see the iPhones getting a price drop. Although it’s still not confirmed yet, we are waiting when Apple will officially make an announcement in the upcoming times.