Following the announcement of the financial results for the first fiscal quarter of 2019, Tim Cook (Apple CEO) announced this the US company will adjust the price of their iPhone outside of the United States.
During a conversation with analysts and investors, Apple's management team explained that the strength of the dollar and the fluctuations of various local currencies have provoked that, in some markets, Apple products are sold at a higher price than their predecessors. However, with the adjustment, the costs for these currency fluctuations will be absorbed, partially or completely, by Apple – not from the final consumer, as it has happened up to now.
Cook quoted Turkey as an example, the local currency suffered depreciation of 33% during 2018. As a result, sales in the region have fallen by about $ 700 million over the same period of the previous year. "We decided to go back to prices more in line with those we had a year ago, hoping to help sell in these regions," Tim Cook told the agency. Reuters.
Both in the United States and the European Union, the price of the iPhone XS, its latest model, remains constant relative to the original sale price of its predecessor, iPhone X (999 / 1,159 euros). In China, however, the price of the iPhone XS 64 GB (8,699 RMB) increased by 4% compared to the iPhone X with a similar capacity (8,388 RMB). This, coupled with the economic hardship experienced by the region – suffering from a general decline in consumption, a commercial war with the United States, and other strategic and macroeconomic factors – has led the company's total revenue – including other divisions – to fall. 27% year on year in the region.
Technological corporation does not specify which markets will benefit for the new strategy, although Luka Maestri said during a call with analysts and investors that it would not affect the division of services.