Apple could slash iPhone prices in bid to boost falling sales
Apple has signalled that it could lower iPhone prices in an attempt to boost falling sales. The firm reported a decline in both revenue and profits in its latest quarterly financial results on Tuesday night. In the three months ending in December, it reported a 15 per cent fall in sales of the iPhone. This reflected a dive from £46.8 billion in 2017, down to £39.8 billion a year later.
Apple Chief executive Tim Cook said customers were are also struggling with the firm's high prices. He signalled that price rises to help account for the expected sales slowdown would be tempered to help recovery.
Mr Cook said iPhone prices would be set at local currency rates in future. Mac, iPad and the Wearables, Home and Accessories category all experienced an increase in net sales. Apple's services - including its music streaming platform, the App Store, iCloud storage and Apple Pay – jumped 19 per cent. But the hole left by weak iPhone sales resulted in a total drop to £64.5 billion, versus £67.6 billion 12 months prior. Profits also fell slightly to £15.3 billion, compared to £15.4 billion previously. "While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter's results demonstrate that the underlying strength of our business runs deep and wide," said Mr Cook.