The first fiscal quarter of 2019 was not too successful for Apple, assuming revenues from iPhone sales. And I think this is recognized by the head of the company Tim Cook. According to the statement by the Director General, there are a few fundamental reasons, due to which iPhone sales were not as effective as previously assumed.
The first reason for weak sales is that users are much less likely to change their smartphones for a new one.
We make our products the most durable. Many use the iPhone throughout the stated lifetime. Then this smartphone can be sold, and they will continue to use it. The life cycle of smartphones has been extended, and there is no doubt, — said Tim Cook.
The second reason is the high price of new products in some emerging regions. Apple needs to do certain steps towards to consumers to offset the price difference due to exchange rate fluctuations, said the head of Apple. As an example, the Director-General led Turkey — revenue from iPhone sales in the region fell by $ 700 million, due to a significant fall of the national currency.
Also problematic is the fact that the operators do not provide subsidies when buying iPhone.
Previously, it was possible to purchase an iPhone 6 or iPhone 6s or even iPhone 7 for $ 199 with two year contract. Now users are required to pay the entire amount at once. We are already working in this direction and very soon we will be ready to provide special conditions for our clients, — said the head of the company.
Finally, the last reason is the program of preferential replacement battery iPhone, which was launched in early 2018. In fact, it allowed users to extend the life of your iPhone, which of course entailed certain consequences. However, it was the right move, says Tim Cook.