Apple Inc. is mulling to reduce some of its iPhones prices outside of the U.S. It is the second time for the company to cut off iPhone prices in 12 years history. With the latest business strategy, Apple is seeking to balance the poor sales of iPhone, especially in Chinese and overseas markets, as the U.S. dollar is uplifted by 10 percent and that is affecting Apple’s products and pushing them toward higher pricing.
Tim Cook, Apple’s CEO made an announcement regarding the price cut on Tuesday, after eying plunging iPhone sales amid most optimistic holiday shopping session. Since the debut in 2007, the company is lowering iPhone prices for just second time. The company hasn’t yet notified in which country it is going to reduce the prices. However, Chinese resellers are already offering iPhone with reduced prices in the country after the company had lessened sales estimations for the third quarter.
Apple Inc. has fixed the latest iPhone XS at $999, while it is offering its previous model which was launched in 2017 at the same price in U.S. dollars. The decision proved beneficial for U.S. consumers, but in other countries such as Turkey and China the local currency was so scarce against escalating U.S. dollar, consequently, the move made the iPhone notably expensive than the previous models. The company had shoved consumers to bear the cost of bolstering dollar.
During Tuesday’s announcement, Cook said that the company is initiating to balance the pricing structure in the overseas market, where consumers have been facing difficulties in iPhone deals. Apple will revamp the prices or make them exactly the same as they were in last year. Therefore, the company will incorporate the price gap between local currencies and strengthening dollar. Getting back to the old prices of iPhone will help those countries to be optimistic about iPhone sales in their markets.
The iPhone maker still did not affirm any specific time for price resetting, as the foreign currency changes are being unpredictable at the moment. CFO of Apple Inc., Luca Maestri, said that the said price adjustments will be limited only for iPhones and consumers should not expect the same for any other products such as Apple Music and the Apple Store.