TECH giant Apple has suggested that it could lower iPhone prices in response to falling sales.
Speaking after publishing the company’s latest financial results, which showed that iPhone revenue was down 15 per cent on last year, chief executive Tim Cook said Apple is starting to adjust its pricing in some countries in response to currency valuation changes around the world.
In its financial results, Apple reported total revenue or $84.3 billion (£64.5 billion), down from $88.2 billion (£67.6 billion) this time last year.
Mr Cook said the “relative strength of the US dollar has made our products more expensive in many parts of the world”, but that it was now trying to protect customers from the impact of currency fluctuation.
“What we have done in January in some locations and (for) some products is essentially absorb part or all of the foreign currency move compared to last year,” he said.
The company did not specify which countries it was focusing on, but suggested it would continue to look at how the iPhone is priced outside the United States after seeing the cost of devices rise in markets where currency has weakened against the dollar in the last year. Resellers in China already began cutting iPhone prices earlier this month after Apple lowered its sales forecast for the quarter ended in December.
The company priced its new iPhone XS, which was released in September, at $999, the same price in as its predecessor, 2017’s iPhone X.
While this strategy worked for US consumers, countries such as China and Turkey where the local currency had fallen heavily against the dollar, saw phones become significantly pricier than its predecessor a year before.
While iPhone sales may be down, the Mac computer, iPad, wearables such as the iWatch, home and accessories product categories all reported sales growth.
There was also an improvement in the company’s services category - which includes the Apple Music streaming platform as well as the App Store and Apple Pay.
The results came after the firm issued an alert to investors earlier this month, warning of a forthcoming sales slump due to the economic slowdown in China.