When Apple announced its financial results for its December Quarter, there were some mixed results. Despite a 19% growth across its other products, the Iphone posted a 15% decline. This had been expected after CEO Tim COOK earlier in the month had asked investors to brace for a decline in revenues.
According to Apple, the decline in sales was as a result of revenue issues in Greater China — where iPhone, iPad, and Mac sales were all down — as well as a lower number of iPhone upgrades elsewhere in the world. The CEO also noted that customers were hanging on to the devices longer and thus leading to a fall in sales.
During an interview with Reuters, the CEO noted that the company was reassessing how it sells handsets outside of the U.S since Foreign Exchange has made Apples’ products more expensive in many parts of the world.
“When you look at foreign currencies and then particularly those markets that weakened over the last year those (iPhone price) increases were obviously more,” the CEO said. “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.”
Prices for smartphones continue to drop globally and with Huawei becoming a strong contender, there is no other way to compete. The US ban on Apple and consequently use of android on Huawei devices will surely help Apple products growth.
Recent Iphone releases have not been very successful but hopefully Apple will catch-up with the rest of phone manufacturers.
The becoming cheaper of Iphone is all but good news to those in countries that have been affected by the price of the Dollar but still want to own the luxury brand.