Apple to reduce iPhone prices?

Chennai: After observing a sharp decline in iPhone sales across various countries, Apple has hinted that it might reduce prices of the iPhone XS, XS Max and the XR.

During the conference held after the firm announced its Q1 results, Apple CEO Tim Cook hinted that the company may readjust iPhone prices after taking into account the local currency exchange so that the new iPhones have prices closer to what the MRP of older phones like the iPhone 8 and the iPhone 8 Plus.

Cook during the conference call said the depreciating currencies in Apple’s foreign markets earlier led to a rise in prices for iPhones. But now apparently the currencies are stable and that may allow Apple to readjust the prices.

Last year when Apple announced the iPhone XS and the iPhone XS Max, it surprised the world by pricing them above $1000. In India too, the new iPhones were nearing Rs 1 lakh price bracket with the XR starting at Rs 76,900 and the XS at Rs 99,900.

“We priced the iPhone XS in the US the same as we’d priced the iPhone X a year ago. The iPhone XS Max, which was new, was a hundred dollars more than the XS, and then we priced the XR right in the middle of where the entry iPhone 8 and entry iPhone 8 Plus had been priced. So it’s actually a pretty small difference in the United States compared to last year,” said Cook.

“When you look at foreign currencies and then particularly those markets that weakened over the last year those (iPhone price) increases were obviously more,” said Cook.

“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,” he explained.

Cook didn’t specify which markets will experience a reduction in prices, but it is possible that India is one of them, reports stated.

NT Bureau