Apple Considering Cutting Down On iPhone Prices In The Course Next Year

The report made by DigiTimes regarding the pre-orders for Apple’s iPhone X smartphone in areas such as Taiwan, the U.S and Singapore to a lot of people seems controversial. In its report it indicated that the preorders were at the moment falling short of expectations.

Rumors have been in circulation that Apple has plans underway to prep three new smartphones in the course of next year. It was DigiTimes that made this particular report but the confusing aspect about the whole matter is was the fact that the rumors had been ongoing for quite some time. This led to most of the people questioning all the sources that DigiTimes was depending upon for information. Such sources outline that the models for 2018 will be a sort of reaction to the weak performance that was associated with iPhone X.

Word has been moving around that Apple is considering adjusting pricing for iPhone gadgets early next year. This news is not being received pretty well by most of the people. To them, it doesn’t still add up why the company had to resort to such a move. Other people have also reached out to the company’s management in the quest to find out what the move meant to the business.

Getting to understand the company and its resolution in a much better way requires that one first and foremost establishes the reason as to why a large number of companies usually make the move of cutting down on prices. The most common one is of course the fact that most of them seek to boost the demand for their products.

It is however important to outline that all the investors need to wake up to the realization that that iPhone revenue is a result of two functions: iPhone average selling prices and iPhone unit shipments.

An official working with the company opined, “If Apple is thinking about cutting iPhone pricing, then the company probably thinks it can grow iPhone unit shipments by enough to more than exceed to loss of revenue, as well as per-unit gross profit margin, from the price reduction.”

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