Apple is having a bit of a rough go of it when it comes to some international markets, but the company may have a plan.
Reuters has a report out on Tuesday, which follows on the heels of Apple officially announcing its first fiscal quarter earnings of 2019. The quarter itself wasn’t quite what Apple was hoping for, but it was still solid enough. Especially in services and wearables, which were above market expectations. The iPhone, however, is still struggling in some markets. To help with that, a change to pricing is on the horizon.
Apple’s CEO, Tim Cook, says that markets that were hit the hardest by currency fluctuations are the same markets where the iPhone pricing directly impacted potential sales. As a result, Apple plans to reduce iPhone pricing in specific markets it has been paying attention to in this regard, aiming to bring prices to where they were a year ago.
“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.”
This will cut into Apple’s margins, but it appears to be a necessary step as it tries to recoup some of the losses it has run into in these markets. What happens next, however, is still unknown. When Apple will make the changes, and just what price point these devices will be met with, wasn’t confirmed in the report.[via Reuters]