IPhone smartphones are rapidly getting cheaper

According to Barclays analysts, Apple is giving up its stable pricing policy. To expand its user base, Apple began selling the iPhone at a lower price.

Tim Long, an IT hardware analyst at Barclays, said at the end of last week that the average selling price of the iPhone has declined from previous years.

Despite the decline in iPhone sales, Apple reported good sales and earnings in the third quarter. The stock price rose by more than 1%. Tech giant led by Tim Cook said earnings per share were $ 3.03 and revenue was $ 64 billion. Analysts had expected earnings per share of $ 2.48 and revenue of $ 62.99 billion. Apple’s performance was boosted by strong demand for iPads and AirPods and Apple’s growing service business.

Revenue from iPhone sales amounted to 33.36 billion dollars, which is slightly higher than the estimate of 32.42 billion dollars. But Lang said the average iPhone price will drop by 10% in the fourth quarter. The company expects the average selling price to fall by 12% for the entire 2019. In addition, it will fall even lower, by about 6.5% next year.

In September, Apple released three new iPhones: the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max. The iPhone 11 costs between $ 699 and $ 50 less than last year’s iPhone XR. Lower prices are expected to attract more buyers.

It remains to wait for the release of the iPhone 5G and see what pricing policy Apple will choose next year.

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