Amaya Toman As part of announcing financial results for the first fiscal quarter of 2019, Tim Cook, among other things, answered a question about whether he thinks the prices of the latest iPhones are too high. He acknowledged that prices may indeed be a problem, but only in emerging markets, not in the United States.
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Dan Pražák Tim Cook called the price difference between the latest models and last year's iPhones 8 and 8 Plus negligible. According to Cook, even this difference can represent a problem in other markets, leading to lower sales, due to the exchange rate of the dollar. The problem in some markets may also be that iPhones are no longer subsidized. Cook himself acknowledged that a person who got a subsidized iPhone 6 or 6s for $199 will be reluctant to upgrade to an unsubsidized device for $749. Apple is trying to solve the problem with subsidies in other ways, such as installments.
In another of his statements, Cook said that Apple devices are designed to work as long as possible. That's why some customers keep their smartphones as long as possible and don't upgrade with each new model. Recently, the refresh cycle has become even longer and the rate of transitions to newer models has decreased. However, according to his own words, Cook does not dare to predict the future in this direction.
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As another reason for the decline in sales he said Cook Apple's battery replacement program. The company launched it last year, allowing its customers to take advantage of cheaper battery replacements in their iPhones. This, according to Cook, also led to people staying with their older model for a longer period of time and not rushing to upgrade immediately.
Of course, the company intends to fight against not very favorable sales. One of its weapons is trade-in programs, in the framework of which customers will be able to exchange an older model for a newer one, which will therefore be cheaper. In addition, Apple will provide them with assistance in the actions associated with the transition.
Due to lower sales, year-on-year revenue from iPhone sales in China fell by 15%, but Cook says that Apple is doing well in many other countries around the world. He cited the United States, Canada, Mexico, Germany, Italy, Spain and Korea as examples.
The price, no innovations and then dangling non-Christian money for various reductions and add-ons... I have already refused to play their game.