IPhone sales revenue took a massive hit in 2019. According to Stasita, the mobile sale contribution to the Apple annual revenue slipped down from 61.66% in the first quarter to 52.1% in the fourth quarter. Although the leading market experts have put the onus on a ‘global trend of downfall’, here are the actual reasons why the iPhone market is crashing down:-
Premium line of IPhones is deprived of local support and hence, Apple has to convert this cost into profit by raising the product price. However, Apple has recognized this factor and is currently working on improving the local assembly numbers. The recent price cut on models such as IPhone XR can be attributed to this.
Weak Rupee value
With a weak rupee value in the international market, the price of an IPhone varies erratically. For instance, the 128GB variant of IPhone XR is price at $799 in the US while the same model in the Indian market costs more than Rs 1 lakh. It’s interesting to observe that the same mobile which is unaffordable for a major share in the Indian market is, contrarily, termed as one of the most affordable IPhones in the US.
Today, customer priorities have created an invisible division in the market. While people have put their faith in Xiaomi for budget and daily use smartphones, the high end market is suitably captured by OnePlus mobiles. In this bracket, IPhone has had a tough time retaining its space.
Ever since the company lost Steve Jobs, the inspiration and experiment quotient of IPhones has been at an all-time low. Be it the weak marketing or introducing new models with minor feature upgrades, even the core community of Apple product users have started to ask the question: What’s new?
Is there any other potential reason? Let us know in the comments below!