As iPhone sales slump, Apple CEO hints at lowering prices — but not everywhere – National

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Apple CEO Tim Cook dinner has hinted the corporate might decrease iPhone costs in some markets in an try and get well its falling cellphone gross sales.

On Tuesday, Apple introduced its iPhone income from its most up-to-date vacation quarter fell 15 per cent from the identical interval a yr in the past. The corporate posted $51.9 billion in iPhone income in its Q1. In the identical interval a yr earlier, it made $61.1 billion from its iPhones.

Not solely was this Apple’s worst performing quarter in years, for the primary time the corporate additionally stated it might cease reporting the variety of iPhones it bought in every quarter.

Apple blamed the problems partly on the continued U.S. commerce conflict with China, which can have damage cellphone gross sales.

Apple’s gross sales in China fell significantly. It stated income in China was $13.17 billion, down from $17.95 billion in the identical interval a yr in the past.

WATCH: As China gross sales weaken, Apple cuts gross sales forecast

However Cook dinner additionally stated that clients in sure markets had been additionally scuffling with Apple’s excessive costs, in accordance with Reuters.

The CEO advised Reuters that Apple is rethinking the way it costs the iPhone exterior the US after largely setting the value in U.S. dollars, which made the telephones costlier in native currencies because the greenback strengthened.

He stated a robust greenback, which makes its merchandise comparatively costlier, had damage its gross sales in rising markets, corresponding to India and Indonesia.

Earlier than the earnings announcement on Tuesday, Cook dinner stated he does “suppose that value is an element,” particularly when it got here to the newer fashions.

Google makes an attempt to undercut Apple’s iPhone XS with cheaper Pixel three

A few of Apple’s most costly telephones embrace the iPhone XS, which works for C$1029 and the iPhone XS Max, which prices $1,519.

He added that in January, Apple began to re-price its telephones with the intention to shield clients from the influence of forex fluctuations.

“What we now have accomplished in January in some areas and a few merchandise is actually take in half or all the overseas forex transfer as in comparison with final yr,” he stated.

There was some excellent news for Apple’s quarterly outcomes. The tech large posted a 19 per cent yr rise for income from all services and products after excluding the iPhone. Companies revenues embrace the App Retailer and Apple Music.

WATCH: Apple reduces income forecast, blames China slowdown

— With recordsdata from Reuters

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