Apple May Lower iPhone Pricing Outside the USA to Increase Sales: Tim Cook
Speaking in an interview with Reuters, Apple CEO Tim Cook has stated the company is re-evaluating its U.S. dollar pricing in markets outside the United States, in an effort to boost sales.
U.S. dollar prices in markets outside America made iPhones more expensive in local currencies. The Canadian dollar is currently worth about $0.75 USD.
Local iPhone pricing in Canada usually is more expensive locally due to the fluctuations. Apple did not mention specific countries where price changes are coming. They did mention on the earnings call revenue in Canada set records.
“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.”
Apple announced its Q1 2019 earnings today, reporting $84 billion in revenue. iPhone revenue was at $51.9 billion revenue, a decline of 15% year over year.
During Apple’s Q1 earnings call, Cook touched on foreign exchange issues, mentioning local currency decline in Turkey of 33% in 2018, caused Apple to lose $700 million USD.
Apple’s iOS install base now stands at 1.4 billion devices, which has helped send services revenue to record highs, at $10.9 billion for the quarter, up 19% year over year.