Apple in early January begun to cut prices of the iPhone XR, the iPhone XS, the iPhone XS Max and older models in China this execution led to improving iPhone sales according to a report published last week from Chinese site Feng.
Third-party iPhone distributors in China received dropped iPhone prices on January 10 allowing vendors to purchase iPhones cheaper, passing these savings on to the customers, the price discounts containing almost all iPhone models but the iPhone XR was the most targeted.
Vendors in China begin offering discounts for many iPhone models shortly after Apple implemented the pricing cuts, for example, JD.com offers the iPhone XR for 6099 yuan ($899) while another electronic store called Suning similar to Best Buy buying iPhone XR for 6199 yuan ($914).
These prices are less expensive than Apple's online stores, where the starting price of the iPhone XR is 6499 yuan ($958).
The iPhone sales have increased by 76 percent on Alibaba site in China since January 13 according to Feng. While in Suning Apple sales have increased by 83 percent since January 11, the site saw Apple traffic and sales “explode” with iPhone 8, iPhone 8 Plus, and iPhone XR.
iPhone sales during the holidays quarter of 2018 fell significantly in China leading Apple to reduce the iPhone revenue expectation, Apple hopping the iPhone sales will boost during Chinese New Year in February, affecting the overall performance in China.
Apple initiatives to boost iPhone sales not only limited to China but in other countries around the world, including the United States, where it promotes older iPhone trade-ins and monthly pricing for iPhones.
Apple's CEO Tim Cook acknowledged that the company is reevaluating the pricing strategies in some foreign markets, readopting the pricing that’s “more commensurate” with what prices were last year to enhance its iPhone sales.
Tim Cook attributed the declining number of iPhone upgrades to Apple's higher prices that led to affect the holiday quarter revenue, the strength of the U.S. dollar also amplified pricing increases in international markets.
Apple announced at its first 2019 fiscal quarter earnings conference that the expected revenue of the second fiscal quarter of 2019(first calendar quarter) is $55 to $59 billion, which is below $61billion Apple earned at the same quarter of 2018. It's not clear enough how much these pricing changes in China and other international markets will help Apple to overcome these ongoing decline in iPhone purchases.
Data source: Feng via Macrumors
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