Tim Cook announced that in the coming weeks the price of the iPhone Xs, iPhone Xs Max and iPhone Xr will decrease in some countries. Here's why
A few days ago, Apple's financial results for the fourth quarter of 2018 were disclosed and as it was announced by the Cupertino company itself, revenues fell by as much as 15%. The reasons are different, starting from the difficulties of Apple to break into the Chinese market up to the problems of the world economy that after a few years of growth is slipping into a period of recession.
Tim Cook, CEO of Apple, gave an interview to the Reuters news agency, commenting on the financial results of the company and also trying to find a solution for the future. Sales of the iPhone Xs, iPhone Xs Max and iPhone Xr have been below expectations, causing revenues to fall in the latter part of the year. Sales are down especially overseas where the unfavorable exchange rate with the dollar has caused the list prices of the three smartphones to be much higher than in the United States. And Tim Cook has also found the solution: the list price of the iPhone abroad will be increasingly similar to that of the US, even at the cost of decreasing profit margins.
Will the 2019 iPhone cost less?"
Tim Cook assured that the new pricing strategy will be applied immediately and already from the next few weeks in some countries the price of the iPhone Xs, iPhone Xs Max and iPhone Xr will decrease. The CEO, however, did not announce which countries will benefit from this new market strategy. It will probably start from developing countries.
If the new pricing policy will bring benefits and allow Apple to increase revenues it may be extended to the new generation of iPhones coming in 2019. According to rumors Apple is working on three new devices, along the same lines as those presented last year. There will be a new iPhone Xr with LCD screen and dual rear cameras and two 2019 iPhones with OLED display and triple camera placed on the back.
We will see if in the coming months the price of the iPhone Xs, iPhone Xs Max and iPhone Xr will drop and if sales will increase. Apple may decide to adopt an international policy on list prices so that there is no disparity between one country and another.