In our daily life as a smartphone is becoming a necessity and we are keeping it whether we like it or not. All smartphones come with a bundle of features, attracting consumers to buy smartphones with the latest tech. Every day big companies offer the latest phones with the highest tech, creating a competition between brands with reference to price and features. One of those top brands is Apple Inc. offering their flagship smartphone iPhone which is very popular around the globe.
Apple has announced that they have plans to cut the price of some of its flagship iPhones in some countries since its revenue dropped by 15% as compared to the same time last year. Apple Chief Executive Tim Cook disclosed the plan on Tuesday after the company reported the first-ever dip in iPhone sales during the key holiday shopping period. Cook did not say in which countries it would adjust iPhone prices.
The main reason for the drop in revenue is due to the impact of foreign exchange problems in many countries as local currencies of many countries had depreciated by specific percentage against the dollar and Apple’s sales were down by $700 million from the previous year. Roughly 60 percent of services business of Apple is outside the United States, the US dollar has appreciated in recent months. Due to this change in foreign currency exchange, the prices of iPhone has increased in most countries, diverting the minds of consumers to cheaper alternatives.