Apple has posted a decline in revenue and profits for the first time in over a decade.
The problems continue for the Cupertino-based tech giant, with the company’s revenue down by more than 4 per cent from last year. Apple CEO Tim Cook has said the reason for this is due to poor sales in China, as well as fewer people buying the iPhone globally.
Apple is even considering dropping the price of its phones due to the decline in sales.
Sales over the festive period were 11 per cent lower than anticipated, with forecasted sales for the second quarter of 2019 also lower than expected. According to CNET, Apple made close to $52 billion in iPhone sales from October to December 2018. That’s down 15 per cent from the year before.
All of Apple’s other products have seen a growth in sales, including the Macs and its wearable devices. The iPhone makes up a whopping 60 per cent of all Apple’s sales. While those sales continue to grow in America, the trade war with China hasn’t helped them increase sales in Asia. There has also been a decline across Europe too.
The weak demand for the phone has meant that the company will consider reducing the prices of the iPhone in markets weaker than the dollar. Since the iPhone 7 was released in 2016, prices have risen by 53 per cent for its flagship phone; with the iPhone X costing $999 in 2017.
Apple is rethinking about how it prices the iPhone outside the US, after setting the price of their products in US dollars.
Cook told Reuters:
As we’ve gotten into January and assessed the macroeconomic condition in some of those markets, we’ve decided to go back to more commensurate with what our local prices were a year ago in hopes of helping the sales in those areas
It will be interesting to see whether reducing the cost of its phones will improve sales, or if people are just put off purchasing iPhones anymore.
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Matt Weston is a lover of electric cars, artificial intelligence and space. From Cornwall, he’s a UCLan graduate that still dreams of being a Formula One driver in the very near future. Previously work includes reporting for regional newspapers and freelance video for the International Business Times.