Apple Unplugs the Dollar: iPhone Price Drop 2.0
Apple’s latest move is almost like a fashion faux‑pen: they’ve decided to lower retail prices in markets outside the U.S. after the Apple‑$ (i.e., the U.S. dollar) got hoarse.
Why the price cut matters
- A 10% U.S. dollar jump over the past year has made Apple’s flagship phones a lot pricier in places like China, where rivals are still shaking out their price wars.
- Apple asked consumers in overseas markets to pony up more for the same model—a prank that tasted bitter.
- After the first x‑clusive dip in holiday sales, Steve Cook (yeah, Apple’s captain) chose to reset the prices to what they were a year ago, essentially “swallowing” the dollar’s appetite.
How the cut plays out.
- Apple’s new iPhone XS, launched in September, was tagged at $999 in U.S. dollars — the same as the 2017 X. While that was smooth sailing for U.S. shoppers, it meant more than a thousand yuan for Chinese customers.
- Operating in places like Turkey and Brazil, Apple wrestles with currency swings that can drop a local currency by 30% or more against the dollar.
- Cook told Reuters that “we’re bringing prices back on par with last year’s local rates,” hoping the sales engine revs up without the price shock.
Beyond phones
The price tweak likely stops at the hardware line. Services—Apple Music, App Store, etc. have seen slower growth, partly because foreign‑market customers are stuck under a higher price shell, even though US services dial a different tune.
Bottom line
- Apple’s still booming in the U.S. but the dollar’s thumb well‑reasonably unhelpful overseas.
- We can only hope that the price reset sticks, and saves the company from a second big dip.
- When Apple decides to keep prices in check, it beats the serious cost‑inflation drama by freezing the splash. Adios, global inflation tantrum!
