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Why does Apple think iPhone prices fall?



January 30, 2019 07:02
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Updated on January 30, 2019 at 7:05 a.m.

Apple's CEO, Tim Cook, says the company can reduce iPhone's price in some countries.

The company is one of the solutions that some analysts point to a phenomenon that warns of: iPhone sales are declining.

The latest economic results in the last quarter, which were announced on Tuesday, show that Apple's phone numbers have fallen by 15% last year.

The benefits achieved by the company through the iPhone have been reduced for the first time in more than a decade.

In total, the company's revenue fell by 5% last year, reaching 84,300 million dollars. Since the year 2016, it has been the first quarter of the company's decline.

Apple's fall is already expected, so it warned its investors earlier this month, which cheated: "We did not know how to slow down the economy's magnitude prediction, especially in China," Cook said earlier this month. .

In new markets

But the company's director has stated at this time that the highest prices for iPhone are creating a problem for customers.

The strength of the dollar, which compared its products to a more comparable price, affected sales in new markets.

Cook also said that this huge January technology began to reduce the price of its mobile phones to protect its customers from currency fluctuations.

"We did in some areas in January and some (some) products were basically a part of foreign earnings or absorbed them more than the previous year," he said.

However, Apple executives say they expect the company to continue to face new challenges.

The expected revenue from Apple in the first three months of the year – until March 31 – US $ 55,000 million, which will reduce at least 3.4% in the annual period.

"The macroeconomic environment, especially in emerging markets, will continue," said Luca Mestri, Managing Director of Apple.

Apple is not the only company with this problem. Smartphone deliveries worldwide dropped 5% in 2018, according to data from Canalys, a market research firm.

Apple's share price has fallen almost sharply in third quarter, as concerns investors, concerns about customers who are not interested in purchasing new iPhones.

IPhone gold age can reach the end. Photo: DAVID PAUL MORRIS / GETTY IMAGES

IPhone gold age can reach the end. Photo: DAVID PAUL MORRIS / GETTY IMAGES

"Fortress"

Fears increased when the company said iPhones, iPads and Macs sold each quarter.

However, Apple shares rose by more than 4% on Tuesday in subsequent commerce (orders running the next day and running the next day), proves that the company saves more than expected.

Quarterly sales were 25% less than last year in China, in areas such as Apple, Hong Kong and Taiwan.

In Europe, this figure was 3%

In the United States, however, the company remains strong: sales have risen by almost 5%. For this reason, the price drop would not affect the region.

The revenue from other services also increased by 19%, with a record increase of $ 10,900 million in that quarter, which ended on December 31.

Cook says the company trusts, emphasizing iPad sales force, Macs and services, such as Apple Pay.

"Although the loss of our sales estimates is depressing, we manage Apple in the long term and the results of this quarter show that the strength of our business is deep and broad," he said.

Apple shares fell for months. Photo: GETTY IMAGES

Apple shares fell for months. Photo: GETTY IMAGES


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