“If Apple is thinking about cutting iPhone pricing, then the company probably thinks it can grow iPhone unit shipments by enough to more than exceed to loss of revenue, as well as per-unit gross profit margin, from the price reduction,” Eassa writes. “This seems like a reasonable strategy: Apple introduced its new iPhones earlier this year and captured the significant early demand that there often is for the company’s new devices.”
“If demand for Apple’s iPhones during this cycle turns out to be weaker than Apple had hoped, I’d be inclined to think that a price adjustment is more likely in the next generation of devices rather than a mid-generation cut,” Eassa writes. “For example, the direct successor to the iPhone X could come in at a lower price point than the one the iPhone X did. Apple could try to offset that lower entry price point by introducing more or larger storage options at the high end of the stack.”
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MacDailyNews Take: The DigiTimes report doesn’t say Apple will cut iPhone prices across the board. If there’s any truth to the rumor, Apple could simply be adjusting iPhone SE pricing – which makes sense, especially if they introduce an updated iPhone SE model in early 2018 as many expect.
(iPhone SE was released on March 31, 2016.)