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Apple to lower iPhone prices in some international markets to boost sales

By Cookie Monster - on 30 Jan 2019, 9:30am

Apple to lower iPhone prices in some international markets to boost sales

Shortly after releasing its earnings report for Q4 2018, Apple CEO Tim Cook revealed that the company is considering to lower the iPhone prices in some international markets. 

In an interview with Reuters, Cook shared the company is considering to price its iPhones in local currency in China and other international markets to boost sales. The iPhone prices in international markets are largely based on the U.S dollar which made them more expensive due to the recent currency fluctuations.

“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 announced earlier today a revenue of $84.31 billion and net quarterly profit of $19.965 billion for the recent holiday quarter. In comparison, it posted a revenue of $88.3 billion and net quarterly profit of $20.1 billion in the same period last year. Nonetheless, this is actually Apple's second best quarter in terms of revenue and profit despite the sluggish iPhone sales.

To boost iPhone sales, Apple reportedly reassigned some marketing staff from other projects and experimented with discount promotions. It is said to have reduced purchase prices of the iPhone XR for channel partners in China so that they are more affordable for consumers. Hiring for some divisions is also reduced though it does not affect key divisions such as the AI team.

Source: Reuters

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