The decline in iPhone sales, about which Tim Cook warned investors in the run-up to the conference after the first quarter results of fiscal year 2019, hit Apple even more than you might imagine. About this in his report wrote analyst consulting firm Fubon Securities Arthur Liao. To minimize losses, he said in Cupertino appealed to his partners with a request to reduce the purchase price of the components used in the assembly of the iPhone.
Earlier, Apple sought to curb a further drop in its revenue, reducing the number of requests for iPhone production, says the analyst. But apparently a ten percent reduction in production was not enough, since Apple sent a request for a discount on components to its Taiwanese suppliers. Although the size of the discount – only 10% – should help the company to solve its problems.
Should I wait for lower prices on the iPhone?
In general, the requirement for additional rebates under the conditions of a total decline in ordering components seems like a joke because the flaws that Apple suffers have a negative impact not only on the company itself but also on its partners. The hardest hit in terms of quality was Foxconn, which produces most of all Apple hardware at its facility. By the end of December 2018, Foxconn's revenue has dropped 8% and should continue to fall further if Apple does not begin to increase production again by supplying work to the Chinese assembly lines.
But from Apple's point of view, which is forced to sell the iPhone at a discount, even a 10% savings on their production will be a big help to their business. Thanks to a discount of suppliers in Cupertino, they can increase the number of countries in which their branded smartphones are available for discount purchase, instead of being limited to China. I think the Russians (and not only them) would have responded very positively, start Apple selling new iPhone models cheaper than now.
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