Category : Technology
The US giant published its financial report for the first quarter of fiscal year 2019, which ended on December 29, 2018. Despite the premiere of new iPhones, the company has no reason to be too optimistic.
It turns out that the quarterly income fell by 5% compared to the same period last year, to the level of 84 billion. Cause? Users are much less eager to buy a company's smartphones, which is a great 15% decrease from last year - of course we're still talking about huge amounts from iPhones, or $ 52 billion, but this drop can not be ignored.
The number of iPhones activated worldwide is also impressive, amounting to 900 million (together with other devices, we are talking about the result of 1.4 billion devices). On the one hand, it's good for the company, but on the other hand it can mean saturation of the market, which combined with high prices of new iPhones creates an explosive mixture. Apple, however, most likely found a solution to this problem ...
And that's what we should be happy about, because the company announced that it will lower prices of its smartphones on the international market, better matching them to local conditions - now it does not look good and just mention that the price of the iPhone XS Max begins in the US from USD 1,100, and in India you have to pay the equivalent of USD 1,500.
And we think it's hard to imagine a better time for such a move, because now its great condition is its services sector (including Apple Pay, App Store, Apple Music, AppleCare or iTunes), which can compensate for selling iPhones at lower prices. Revenues of this department increased by 19 percent compared to the same period last year, to 10.9 billion dollars! In short, if you're a fan of the brand, there is a chance for more reasonable prices for new models, although it is difficult to predict if this is enough in the face of the constantly advancing Chinese producers - time will tell.
Additionally, as Samsung and Huawei have presented their foldable smart devices, we are looking forward to seeing similar products from Apple also. We believe it won’t take long time to see it. However, we are not sure about its price. Until now, Apple is used to be more expensive than its competitors. We will see how will be their new pricing strategy.