“Apple dropped iPhone prices for third-party distributors in China on January 10, allowing vendors to purchase iPhones more cheaply and pass those savings on to customers,” Clover reports. “Apple cut prices on most iPhone models, but the XR saw the biggest discounts.”
“According to Feng, data sourced from Alibaba suggests that iPhone sales on the site have increased by 76 percent in China since January 13,” Clover reports. “Suning, meanwhile, saw Apple traffic and sales ‘explode’ with the iPhone 8, 8 Plus, and XR in particular seeing purchase boosts. Apple sales from Suning have increased by 83 percent since January 11.”
“Earlier this week, Apple CEO Tim Cook said that Apple is reevaluating its pricing strategies in some international markets, returning to pricing that’s ‘more commensurate’ with what local prices were last year to boost its iPhone sales. ”
Read more in the full article here.
MacDailyNews Take: Take that, foreign exchange headwinds!
The relative strength of the U.S. dollar has made our products more expensive in many parts of the world…
If you look at what we did this past year, we priced the iPhone Xs in the U.S. the same as we priced the iPhone X a year ago. The iPhone Xs Max, which was new, was $100 more than the Xs. And then we priced the XR right in the middle of where the entry iPhone 8 and entry iPhone 8 Plus have been priced. So, it’s actually a pretty small difference in the United States compared to last year.
However, the foreign exchange issue… amplified that difference in international markets, in particular, the emerging markets which tended to move much more significantly versus the dollar. And so, what we have done in January and in some locations and some products is essentially absorbed part or all of the foreign currency move as compared to last year and therefore get close or perhaps right on the local price from a year ago. So, yes, I do think that price is a factor. — Apple CEO Tim Cook, Q119 conference call, January 29, 2019
Beloved, cherished interns, perform your sacred duty: Tap That Keg!
TGIF and hoist away, everyone! Prost!