Apple hints at lower iPhone prices after sales drop

Posted January 31, 2019

Apple reported on Tuesday in the U.S. that its iPhone revenue declined 15 per cent in its fiscal first quarter ended December 29 to US$51.98 billion, down from US$61.10 billion in the year-ago quarter because of foreign exchange conditions. Besides the profit decline, Apple's revenue fell 5 percent from the prior year to $84 billion.

In the absence of official figures from Apple, analyst firms have published their own estimates.

The iPhone, Apple revolutionized the mobile phone industry, there was a decline in sales of around 15 percent to almost 52 billion dollars. Apple also gave old iPhones new life last by offering to replace aging batteries for $29, a 70 percent discount. To change from Lightning to USB-C would be a notable move for Apple, and would increase the iPhone's compatibility with third-party accessories and Android phones.

$51.98 billion came from the sales of iPhone.

"Apple iPhone has an Asia problem", wrote Strategy Analytics analyst Neil Mawston.

Sales of Apple's flagship iPhones plummeted 15% during the holiday quarter, a sharp deterioration in a business that the company said Tuesday will continue to struggle in the coming months. It said it now has 1.4 billion active devices, an increase of 100 million from past year, and that 900 million of those are iPhones. Across all of its devices, it now has 1.4 billion active users, up 100 million from January, company officials said.

In addition, to further highlight how services will fill the void poor iPhone sales have left, Apple for the first time, reported its margin - a whopping 62.2%. This contributed to iPhone revenues falling 15% year-over-year with $52 billion in revenue in Q1, compared to $61.1 billion in Q1 2018.

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Smartphone shipments have declined in 2018, according to Counterpoint Resarch.

The iPhone SE made a brief appearance on Apple's clearance page, but rapidly sold out. "Still, these price cuts could stimulate sales to a certain extent".

As for Apple's plans for video, Cook said the company participates there in a variety of ways, including through Apple TV.

For perspective, here's an interesting nugget of information from the call - Apple Pay had more activations in its first week of Germany than Android Pay did in the entire year.

Moreover, Apple is planning to introduce a bunch of new services this year as well.

Apple CEO Tim Cook speaks during an event to announce new products, October 30, 2018, in the Brooklyn borough of NY.

Every new beginning comes from some other beginning's end. "We manage Apple for long term".

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Apple doesn't do small.

But don't worry, Apple fans. But Cook's not ready to talk about it too much. Apple says its cheaper iPhone XR has been the best-selling iPhone since its launch.

The company priced its new iPhone XS, which was released in September, at $999, the same price in USA dollars as its predecessor, 2017's iPhone X.

Ahead of this week's G20 meeting, Trump talks up tariffs on Chinese-made iPhones and MacBooks.

The Cupertino giant is expected to slash prices of its iPhones for the second time in history.

The company blames a deceleration in demand in China, but investors imagine the worst.

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