Apple, the iPhone maker, is planning to slash prices for some of its iPhone models in some countries excluding the U.S. This is the second time in history that the tech giant will be cutting prices of iPhone. Apple hasn’t revealed the countries chosen for a price reduction, according to a Reuters report.
“We’ve 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,” said Tim Cook, Apple CEO, according to the report.
The rising value of the U.S dollar has affected the Apple sales. In foreign markets such as China, the dollar value has spiked significantly which has caused iPhone prices to rise. This has had an effect on the company’s sales as its product became more expensive than its rivals.
Cook on Tuesday said that iPhone sales in Turkey were down by $700 million compared to the previous year. Turkey Lira has fallen 33% against the U.S. dollar over the year. Earlier, the tech giant had also confirmed foreign exchange pressures affecting sales in countries including Brazil, India and Russia.
Luca Maestri, the Apple CFO, said that the price revision will not affect other services like Apple music and the app store. Maestri sided with Cook and said that Apple sales were hurt by increased prices of iPhones in foreign countries. “Roughly 60 percent of our services business is outside the United States, and as you know, the U.S. dollar has appreciated in recent months. And in general, we tend not to reprice our services for foreign exchange on a very frequent basis,” she said.
Apple announced the slash in prices on Tuesday. The tech firm also started off the year by announcing a cut in their revenue guidance for the first quarter. Cook indicated that the fall in the revenue guidance was due to a reduced iPhone demand among Chinese consumers. He blamed the US-China trade war for a decreased demand for iPhones in the country.
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