Following the publication of financial results for the first fiscal quarter of 2019, Tim Cook (Apple’s CEO) announced that the American company will reconfigure the price of its iPhone outside the United States.
During a conversation with analysts and investors, Apple explained that the strength of the dollar and fluctuations in the rates of various local currencies led to the fact that in some markets Apple products are selling at a higher price than their predecessors.However, after the changeover, the cost of these currency fluctuations will be partially or fully covered by Apple, and not by the end user, as has happened so far.
Cook cited Turkey as an example, local currency lost 33% during 2018As a result, sales in the region fell by about $ 700 million over the same period last year. “We decided to return to prices that are more appropriate for those that we had a year ago, in the hope of helping sales in these regions,” Tim Cook told the agency. Reuters,
In both the United States and the European Union, the price of the iPhone XS, its most recent model, remained unchanged relative to the original sale price of its predecessoriPhone X ($ 999/1159 euros). In China, however, the price of the iPhone XS 64 GB (8,699 yuan) increased by 4% compared with the iPhone X of the same capacity (8,388 yuan). This, along with the slowdown in economic growth in the region, which is experiencing a general decline in consumption, a commercial war with the United States and other strategic and macroeconomic factors, led to a fall in the company's total revenues, including other divisions. 27% year on year in the region.
Technology Corporation did not specify which markets will benefit for a new strategy, although Luka Maestri said during a conversation with analysts and investors that this will not affect the separation of services.