Apple may do the unthinkable and reduced iPhone prices to bolster the falling sales. According to a report by BBC, CEO of Apple, Tim Cook has dropped hints about the move.
Apple which has been struggling recently due to falling sales has seen their market value drop by over 40% in the last 3 months.
iPhone price cut is likely a reaction to market and not long term strategy
The price cut has been forced on apple due to the weak iPhone sales that have haunted Apple in recent times, with even Tim Cook admitting that iPhone XR has been a flop.
Apple’s woes have been attributed largely to the weak sales in China which had resulted in lowered sales forecast by analysts. Apple then issued an advisory that projected a lowered revenue followed by a production cut by 10%.
While Apple insists that China ban is ineffectual and a simple software update has fixed the problem, the ban in Germany is more damaging. Qualcomm had deposited $1.5 billion to enforce the ban which Apple is trying to appeal. However, the German court has not been lenient with Apple and had reprimanded in recently when Apple tried to assuage concerns with a press release that the court labelled “misleading”.
Consumers have rejected the price
What seems apparent now is that the consumers have rejected the price tag of $$750 – 1,200 for the latest iPhone X series, this is reflected in their quarterly sales that have dropped by over 25% in China.
In recent times Apple has tried to calm the investors by insisting that other
Tim Cook underlined this by stating that, ” While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide,”.