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Apple lowers iPhone device prices in selected countries



When Apple presented its latest quarterly data on Tuesday night, it turned out that in January, the company started to cut prices on iPhones in some markets. This is the second time in the history of the iPhone to lower prices.

New models of iPhone sales failed to meet expectations, especially in emerging markets such as China. IPhone revenue declined by 15 percent in the third quarter, and since Iphone historically makes up about 60 percent of Apple's revenue, this is a significant drop.

Much of the reason, according to Apple, is that some markets are characterized by a high dollar exchange rate against the domestic currency. This is particularly true of critical emerging markets where Apple can still grow, and US goods have risen by more than 10 percent in one year.

"We have decided to lower the prices to the level of the local currency than the previous year, hoping to increase sales," said Apple's Tim Cook manager Reuters.

Cook mentioned countries like Turkey, where the domestic currency was recorded by 33 percent. In November, Apple reported that currency pricing was also in Brazil, India and Russia.

Difficult in Norway

The Norwegian crown also buckled toward the dollar in the past year. The US dollar exchange rate has risen by just over nine percent since the start of the Iphone launch and Norway's price. The growth since launch last fall was slightly more than four percent.

It is unlikely that this is enough to make Norway favored by price reductions. Norway is not a growing market, on the contrary, Iphone has a good market share here, probably between 60 and 70 percent.

– I would be surprised if price drops here. They do not have to do it because they have a strong market position and do not lose competitiveness even if prices are rising, says Ragnhild Silkoset, marketing professor at BI Norwegian Business School and the University of Tromsø.

"Smart from Apple"

The Norwegians are among the most profitable global consumers, and the new iPhone models were at the top of the sales launch since launch, despite high prices.

– Apple is smart to use the currency as an explanation. The external reason for lowering the price justifies the reason for changing the price. For example, if they said the price was too high, it would lead to bad light and cost-pressure in other countries, says Silkoset.

He thinks that the third motivation gives contestants a real signal.

"Explaining the price change, Apple sends its competitors a signal that price changes do not mean they are ready for a price war," says Silkoset.

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