Apple’s iPhone prices have gotten to very ridiculous levels where some configurations are priced at over $1,000. This is why it doesn’t come as a surprise to learn that the iPhone is seeing weaker demand. This is especially true in certain markets, especially emerging markets where the price of an iPhone is worth 2-3 months of salary.This is why in an interview with Reuters, Apple’s CEO Tim Cook seemed to hint that the company might consider revising their prices in certain markets, especially in countries whose currency had weakened considerably against the US dollar. “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.”
For the most part Apple has tried keeping its prices of its products and services in line with what they price it in the US, but as Cook stated, some markets seem to be more adversely affected due to a weaker currency which means that it is considerably more expensive to buy an iPhone than before.
We’ve seen this happen before where a couple of years ago, the announcement of Brexit affected the UK pound which resulted in devices like the MacBook Pro seeing a price increase of around 50%. Whether or not this will actually help improve iPhone sales remains to be seen, but price cuts are always welcome.
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