Apple Cuts iPhone Prices For Second Time Ever
After reporting its first-ever dip in holiday season iPhone sales since the pioneering smartphone was introduced 12 years ago, it appears Apple has finally gotten the message that trying to sell $999 smartphones in a world where Samsung and (in foreign markets, at least) Huawei offer models with comparable functionality at a much, much lower price isn't a savvy business strategy.
Apple will cut iPhone prices for only the second time in the device's history, Apple CEO Tim Cook told Reuters on Tuesday, adding that the cuts will be restricted to foreign markets where the dollar's strength has impacted sales (though critics have also questioned the company's decision to offer $1,000 smartphones beginning with the iPhone X). Cook didn't specify which markets would be impacted.
Cook said Apple would reset prices by adjusting for the last year's worth of dollar appreciation, effectively meaning the company will absorb the foreign exchange impact.
"Weโve decided to go back to (iPhone prices) more commensurate with what our local prices were a year ago, in hopes of helping the sales in those areas," Cook said.
A few weeks ago, Apple cut its sales guidance for the first time in 16 years, citing slowing sales in China as the biggest factor. Its Tuesday earnings report largely corroborated this, with the company registering a 26.7% plunge in China revenue, with the drop in China sales amounting to nearly $5 billion (from $18BN to $13.2BN).
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The two caps are why they are doing this. Massive share repurchase program, need to continue to pay dividends and failure to disclose unit sales.
for those who do not understand why this stock and any other's that report poor results are up on these results see here:
>>4774747 pb
https://www.zerohedge.com/news/2019-01-30/apple-cuts-iphone-prices-second-time-ever