Tim Cook (Apple CEO) announced it after the financial results for the first fiscal quarter of 2019 The American company will adjust its iPhone price outside the United States.
During a conversation with analysts and investors, the Apple Management Team explained that the strength of the dollar and the fluctuations of the various local currencies have led to some markets becoming unstable. Apple products are sold at a higher price than their predecessors. However, with the adjustment, Apple will absorb all or part of the currency fluctuation costs, not the final consumer, as has happened to date.
Cook quotes Turkey as an example local currency has experienced a 33% decline in 2018. As a result, sales in the region have fallen by about $ 700 million over the same period last year. "We decided to return to prices that would be more in line with what we had a year ago, hoping to help sell in these regions," Tim Kuk told the agency. Reuters.
In the US and in the European Union, iPhone XS, the price of its latest model, has remained unchanged against the initial sale price, iPhone X ($ 999/1 159 Euros). However, in China, the price of the iPhone XS 64 GB (RMB 8,699) has increased by 4% compared to similar power of the iPhone X (8,388 RMB). Together with the region's economic downturn, which is suffering from a decline in overall consumption, the commercial war with the United States and other strategic and macroeconomic factors have led to a reduction in the company's total revenue, including other distributions. 27% year-on-year in the region.
Technological Corporation has not indicated which markets will benefit about the new strategy, although Luca Maestri told analysts and investors during the conversation that it would not affect the service department.