Apple Lowering iPhone Prices in Some International Markets to Boost Sales

[MacRumors]

Apple CEO Tim Cook today told Reuters that the company is "rethinking" iPhone prices outside of the United States. Setting prices in U.S. dollars has made phones more expensive in local currencies, so Apple is planning to lower prices.

Cook says that in some international markets, after assessing macroeconomic conditions, Apple will go back to pricing that's "more commensurate" with what local prices were last year to boost sales.

"When you look at foreign currencies and then particularly those markets that weakened over the last year those (iPhone price) increases were obviously more," Cook told Reuters. "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."

Apple has already started lowering the price of the iPhone for third-party distributors in China, and price cuts could also be introduced in other areas like India and Brazil, where the iPhone is prohibitively expensive and has seen stalled growth due to high pricing.

Cook may provide details on specific areas where price cuts will be implemented during the earnings call.

Article Link: Apple Lowering iPhone Prices in Some International Markets to Boost Sales

 

[DBZmusicboy01]

You better do it here too

 

[sundog925]

why not lower prices in the US as well? I mean damn, we make up most of their sales.

 

[Elijahg]

If this isn't an admission iPhones are too expensive I don't know what is.

 

[mcbumbersnazzle]

Desperate apple is desperate

 

[Pitogyro]

The guy said "rethinking". He means increasing.

 

[G5isAlive]

Used to be people would come to the US to buy their Apple toys.... now we get to go to Brazil! Can anyone say "Mardi Gras'. Oh yeah.

 

[macduke]

So everyone is getting a price cut except the United States? Thanks a lot Tim! Way to screw over your home country.

 

[johnyslats]

Can’t imagine they’ll do anything for the UK no matter how dire with Brexit (maybe) just around the corner

 

[grantanyan]

Way too expensive in the UK. I'm still clinging onto my 6S, as I can't get anything worth upgrading to for under £50/month on contract.

 

[555gallardo]

And they should start with Europe, where the iPhone XS starts at 1149€ ($1299) as opposed to US' $999.

 

[oghowie]

The iPhone X is great, when I got it for $400 off on Black Friday. Drop the damn prices Apple.

 

[Abazigal]

Apple is basically adjusting for currency fluctuations...

 

[Appurushido]

Lower the prices in the U.S. too. The flagship phone has raised in price three years in row. Should be no more than $1,000 for the base model. Apple getting greedy and which causes people to upgrade less frequently due to skyrocketing cost over the last few years.

 

[Brandhouse]

AU$1,299.00 for an XR and AU$1,879.00 for an XS in Australia for 256Gb models- still way to damn expensive. Don't know if these prices are reduced, or if we're going to se prices comes down here.

 

[ekwipt]

start with Australia fark mate

 

[A7ibaba]

 

[Appurushido]

So everyone is getting a price cut except the United States? Thanks a lot Tim! Way to screw over your home country.

Agreeing with you, but surprisingly Korea does the same with their Galaxy phones. Most of my Korean friends buy their Galaxy phones in the US than in the motherland haha.

 

[Jimi72]

The first step in solving a problem is recognizing there is one...

 

[lunarworks]

Can you re-think prices in Canada across the board?

 

[Gilligan's last elephant]

Apple is basically adjusting for currency fluctuations...

You mean now using the real exchange rates for countries rather than their own inflated rates.
Edit: or rather, deflated rates

 

[Falhófnir]

why not lower prices in the US as well? I mean damn, we make up most of their sales.

If they just edged down XS/Max base USD prices to something like $899 and $999 I think that'd probably go a long way to solving this issue globally. Ultimately their earnings released today show it's still in their interests to keep the iPhone user base growing to help service revenues (which are heavily tied to iPhone success). If they have to cut into iPhone profits, but a more sustainable trajectory is the reward, I still think the markets will react positively.

 

[Abazigal]

You mean now using the real exchange rates for countries rather than their own inflated rates.

Wasn’t Apple basically preserving the prices of their products in terms of the US dollar?

 

[Juicy Box]

And they should start with Europe, where the iPhone XS starts at 1149€ ($1299) as opposed to US' $999.

Is this before or after VAT?

 

[UnusedLoginID]

If they just edged down XS/Max base USD prices to something like $899 and $999 I think that'd probably go a long way to solving this issue globally. Ultimately their earnings released today show it's still in their interests to keep the iPhone user base growing to help service revenues (which are heavily tied to iPhone success). If they have to cut into iPhone profits, but a more sustainable trajectory is the reward, I still think the markets will react positively.

They already have lowered the prices in the US by increasing trade-in values of older phones up to $100 (on the 6 plus, 6s and 6s plus). And comparatively the phones have always been cheaper in the US than any other country.
Apple will ride the wave until September not announcing a price drop, and then you’ll see a 32GB XR at $599 in Sept.