Apple iPhone Flagships to Receive Price Cuts in International Markets
Last updated June 16, 2021
- Apple is having a hard time getting international users to purchase its latest iPhone devices.
- From poor US-China trade relations to high currency conversion rates, a number of issues are affecting the tech giant.
- The company will be reducing the prices of its iPhone XS devices for some international markets and introduce regional pricing.
Amidst concerns surrounding Apple’s iPhone sales, the Cupertino tech giant is planning to drop prices of its latest flagship iPhone XS devices in some markets. It was reported that the iPhone revenue has dipped by 15% due to an underwhelming holiday season in Q4 2018.
Apple recently updated its earnings guidance to inform everyone that lower sales are to be expected and also because of the recent stoppage of the battery replacement program. CEO Tim Cook stated that the slow sales figures in China have proven to be a challenge. Not only is the Chinese market price-sensitive but the recent US-China trade war is not helping Apple’s case either. China is also home to brands like Xiaomi and Huawei who are known to offer phones packed with features that are competitively priced.
Apple believes that the US dollar’s conversion rate is the biggest culprit. Even though the iPhone XS costs exactly the same as the previous generation X, the current conversion rate in China has led to a much higher local price. The same is true for a number of other price-sensitive markets like India as well.
CEO Tim Cook revealed in a statement “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.” Market saturation and users being less willing to upgrade have also been discussed as potential reasons for the decline in sales by experts.
Apple saw a record number of iPhone batteries being replaced recently right before the affordable battery replacement program was discontinued. Users have become less inclined to upgrade, and Apple seeks to address the issue by making changes to the iPhone upgrade process to ensure enough sales are generated for each release.
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