Apple Hints at iPhone Price Drop

Apple Hints at iPhone Price Drop
High prices and a strong U.S. dollar mean iPhones are too expensive for many potential customers.

(CCM) — Apple may be forced to drop the prices its charges for some of its iPhones in a response to plummeting sales, the BBC is reporting.

Tim Cook, Apple's chief executive, hinted at the move as iPhone sales revenue dropped 15% in the last financial quarter. Apple charges more for its phones than other vendors — the so-called "Apple tax" — and the iPhone accounts for most of the company's profits.

Cook said that many customers could barely afford the current range of iPhones, and added that the strong dollar was making the phones even more expensive in many emerging markets. To counter this, the company has decided to cut the prices of its phones to compensate for the exchange rate effect.

"What we have done in January in some locations and [for] some products is essentially absorb part or all of the foreign currency move as compared to last year," he said.

Despite this move, the company expects revenue for first quarter of 2019 to be down over 3% compared to last year as customers either hang on to their existing iPhones for longer before upgrading or switch to lower-priced Android alternatives.

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