Apple Announces Plan To Cut Down Prices of Flagship iPhone Models in Selected Markets

2019-01-31 , 3:58 pm

If you’re like our BuffLord95, who’s absolutely crazy about iPhone because it’s the best damn smartphone ever, you’ll love to hear this.

Because according to the latest news from Apple, the prices of iPhone in non-US markets are going to drop.

Big time.

Here’s what you need to know.

Apple Cutting Flagship iPhone Models’ Prices Around The World

An iPhone is good but it’s not exactly what you’ll call cheap.

I mean, just take a look at how much the iPhone X will cost you:

And that’s with a 2-year postpaid contract with a telco provider in Singapore.

Without a contract, you’ll have to shell out up to $1,499 for an iPhone X, 64GB.

Yup.

That’s a lot.

And there’s a reason for this.

Apple Typically Peg Their iPhone Prices To US Prices

According to a report, here’s how Apple typically decide on the retail price of their iPhones.

By pegging it to US prices.

Their new iPhone XS, released in September, was priced at US$999. This price was the same as its predecessor, the iPhone X in 2017.

Which is pretty good for US consumers.

After all, it won’t hit the 4-digit mark.

But what they did not take into effect is the currency strength of the US dollar.

So while this means that the price remains constant for their own countrymen, markets like China and Turkey will see appreciating prices due to the fall of their currency against the US dollar.

In other words, consumers are actually absorbing the cost of currency exchange when they purchase iPhone products.

But that’s about to change soon.

Apple Reveals Plan To Cut Prices Down To Prices A Year Before

On 29 Jan 2019, Apple chief executive Tim Cook said they’ll cut the price of iPhone models in selected markets.

Instead of pegging it against the rising US dollar, they’re going based the retail value on the past prices in local currencies outside of the US.

And this is rarer than witnessing a solar eclipse in Singapore, given that Apple’s only cut their prices once before in 2007.

Which, by the way, was when iPhone just debuted in 2007.

Apple Sales Down During The Holiday Season

So, you’re wondering, what prompted this change of heart with Apple.

Aren’t they always targeting the premium market (i.e. high-SES) in the first place?

Well, this announcement came shortly after Apple reported a first-ever dip in sales during the holiday season.

This move, Tim Cook said, is done to help grow sales in slow-growth markets.

The local currency in Turkey fell by 33% against the US dollar, and this led to a drop of US$700 million sales in Turkey, compared to the previous year.

It was added that there is currency pressure on their prices in Brazil, India and Russia.

Will Singapore See The iPhone Price Drop Too?

We don’t know, although we hope so.

Apple has not announced exactly which non-US markets will be affected by the changes.

But as mentioned by Apple above, they’re absorbing the cost of currency exchange for non-US markets that are seeing a huge dip in sales.

Singapore isn’t exactly a country which has seen the Singapore currency drop drastically against the US dollar.

But then again, which would you rather have?

The Singapore dollar dropping against the US dollar, which spells trouble for all of us because it means we’re running out of money? Or a few hundred dollars discount on new iPhones?