Apple's iPhone problem: It just needs lower pricing, analysts say

phys.org | 1/31/2019 | Staff
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To hear Apple tell it, the reasons for the slowdown in iPhone sales can be attributed to changing economic conditions in China, the fluctuating change of the dollar in other countries and a shift in how people buy the iconic device.

To listen to analysts describe it, the issues could be solved with a simple fix: lower prices.

Shortfall - Sales - Forecast - January - Apple

The shortfall in sales, first forecast in early January, was stark. Apple sold $51.9 billion worth of iPhones this quarter. That's a $10.1-billion drop from the year-ago quarter, which saw $61.1 billion worth of sales.

That's drastic, and suggests that perhaps new features that were added this year to the iPhone XS, XS Max and XR, like more powerful processors and snazzier screens just didn't resonate with consumers. The XS Max is the most expensive iPhone ever, starting at $1,100.

IPhone - People - Daniel - Ives - Analyst

"What's clear is that a four-digit iPhone will not get people to upgrade," says Daniel Ives, an analyst with Wedbush Securities.

In laying out various reasons for the shortfall in an earnings call with analysts Tuesday, Apple CEO Tim Cook looked to China and the dollar as well as the way people now buy phones—at full price.

Customers - Phone

Many would-be customers looked to upgrade, yet remembered how they used to pay $199 down for the phone and then paid off the...
(Excerpt) Read more at: phys.org
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