Price Drops Work
When Apple reported its fiscal results for Q2 2019, it revealed something interesting. Namely, the company was doing better in China — both compared to the previous quarter and analyst expectations. While Apple CEO Tim Cook attributed this to a variety of factors, one thing stuck out: “price adjustments.” He didn’t explicitly say it, but the results illustrated that price drops work. Apple needs cheaper smartphones, especially in a slumping global smartphone market.
There’s a reason why Huawei is quickly gaining ground — its devices are cheap. In the two most important smartphone markets in the world, China and India, Apple’s devices are out of the price range of the majority of consumers. Apple needs to adjust its “premium-first” strategy and release smartphones in the Google Pixel 3a range. That’ll help it compete in China and India, and it could also undoubtedly help Apple stay relevant in other markets, too.