APPLE has hinted it will slash iPhone prices as the company announced its first fall in revenue and profits in a decade.
Boss Tim Cook blamed a combination of weak iPhone sales and a downturn in China for the 4.5 per cent fall in revenue to around (64.5billion) $84.3billion.
Apple has hinted it will slash iPhone prices[/caption]
Revenue from the iPhone, responsible for most of the firm’s profits, fell 15 per cent in its latest financial quarter.
In response to the slump, Cook said Apple is now reconsidering the pricing of iPhone models in international markets.
He admitted customers are struggling with the tech giant’s high prices.
He said a strong dollar, which makes its products comparatively more expensive, had hurt its sales in emerging markets.
Cook said the tech giant had started this month to re-price its phones to shield customers from the impact of currency fluctuations.
The CEO did not name the specific areas the company is now looking at – but it is thought he may have been referring to China, where sales are particularly suffering.
DOWNTURN IN CHINA BLAMED
It is possible that Brits could be in line for cheaper iPhones too as the British pound has fallen against the US dollar since the EU referendum.
“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.”
CUSTOMERS ARE STRUGGLING WITH PRICES
The vow came as Apple announced its year-on-year earnings and profits are down for the first time in more than a decade.
Despite announcing its second highest quarter ever in terms of revenue and profit, the tallies fell below the same period last year.
During the last three months of 2018, Apple brought in $84.31 billion, which is a net profit of $19.96 billion.
That’s down from the $88.3 billion and profit of $20.1 billion.
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The fall in earnings, which had been predicted by Wall Street and prefaced by Apple, is largely down to a 15 per cent year-on-year fall in the money Apple brings in from iPhone sales.
Apple is blaming a drop in demand in China, while hinting cheap battery replacements offered have affected upgrades.
But it says there is now a record 1.4 billion active devices, which is up 100 million from last year.
Boss Tim Cook blamed a combination of weak iPhone sales and a downturn in China for the 4.5 per cent fall in revenue[/caption]