New discounts for iPhone are not Apple's response



[ad_1]

<div _ngcontent-c14 = "" innerhtml = "

Apple posted cheaper iPhone prices on its Chinese website, but that will not be enough to stem the decline in sales.

As the quarterly results were announced by Tim Cook and Apple in January, falling sales in China were singled out as a major problem. Apple cited problems with exchange rates and US / China relations, but the more immediate response – that fewer customers were taking up iPhones and turning to more competitive Android phones – also proved to be the case.

Since then, Apple has pulled levers behind the scenes to try to improve the attractiveness of the iPhone portfolio, including reducing the wholesale price to encourage networks to boost sales. It seems that these did not make an appreciable difference.

Today, Apple has implemented a price cut on the iPhone plate in China. & Nbsp;Hou Qijiang and Tang Ziyi report for Caixin Global:

Top e-commerce sites, including Tmall and JD.com, have already lowered phone prices twice this year. Now the cuts are getting an official seal of approval – on Apple's own website.

For the first time this year, Apple has lowered iPhone prices on its official Chinese website. On Monday, the maker of smartphones lowered prices between 300 yuan ($ 44.7) and 500 yuan for all models of the iPhone X, iPhone 8 and iPhone 7, according to its website.

Customers gather while attending a class to learn how to use their iPhones at an Apple store on January 7, 2019 in Beijing, China (Photo by Kevin Frayer / Getty Images)

Getty

While this price cut is more a matter of applying lower tax rates in the manufacturing chain to the end product, the vagaries of VAT will not be the takeaway consumers will accept. They will realize that Apple is cutting the prices of the latest iPhones that everyone has already pointed out that they are not selling well.

That said, maybe this is the ideal point in the price line for the iPhone? Perhaps this is the point where the Chinese consumer looks at the iPhone and decides that this is the price at which it can jeopardize their quest for high specs and a new design? Maybe this is the minimal change needed to reverse Apple's fate?

Or maybe Apple needs to realize that the Chinese market really does not buy in the closed garden of the Apple ecosystem? Considering that the market prioritizes annual design updates, visibly high specs and the ability of consumers to switch between OEMs on little more than a fad of fashion, even a dilution of Apple's fanatical focus on the premium price will not be enough.

Now read about Apple's apology for the MacBook Pro keyboard …

">

Apple has posted cheaper prices for the iPhone on its Chinese site, but that will not be enough to halt the decline in sales.

As quarterly results were announced by Tim Cook and Apple in January, the fall in sales in China was singled out as a major problem. Apple cited problems with exchange rates and US / China relations, but the more immediate response – that fewer customers were taking up iPhones and turning to more competitive Android phones – also proved to be the case.

Since then, Apple has pulled levers behind the scenes to try to improve the attractiveness of the iPhone portfolio, including reducing the wholesale price to encourage networks to boost sales. It seems that these did not make an appreciable difference.

Today, Apple has implemented a price cut on the iPhone plate in China. Hou Qijiang and Tang Ziyi report for Caixin Global:

Top e-commerce sites, including Tmall and JD.com, have already lowered phone prices twice this year. Now the cuts are getting an official seal of approval – on Apple's own website.

For the first time this year, Apple has lowered iPhone prices on its official Chinese website. On Monday, the maker of smartphones lowered prices between 300 yuan ($ 44.7) and 500 yuan for all models of the iPhone X, iPhone 8 and iPhone 7, according to its website.

Customers gather while attending a class to learn how to use their iPhones at an Apple store on January 7, 2019 in Beijing, China (Photo by Kevin Frayer / Getty Images)

Getty

While this price cut is more a matter of applying lower tax rates in the manufacturing chain to the end product, the vagaries of VAT will not be the takeaway consumers will accept. They will realize that Apple is cutting the prices of the latest iPhones that everyone has already pointed out that they are not selling well.

That said, maybe this is the ideal point in the price line for the iPhone? Perhaps this is the point where the Chinese consumer looks at the iPhone and decides that this is the price at which it can jeopardize their quest for high specs and a new design? Maybe this is the minimal change needed to reverse Apple's fate?

Or maybe Apple needs to realize that the Chinese market really does not buy the closed garden of the Apple ecosystem? Considering that the market prioritizes annual design updates, visibly high specs and the ability of consumers to switch between OEMs on little more than a fad of fashion, even a dilution of Apple's fanatical focus on the premium price will not be enough.

Now read about Apple's apology for the MacBook Pro keyboard …

[ad_2]

Source link