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“With Apple AAPL +0.92% already fighting one very large fire, company CEO Tim Cook has been forced to admit it faces another, more expensive one…
Speaking to Reuters, Cook admitted iPhones have become too expensive for users around the world and the company is now “rethinking” its pricing. Yes, this means iPhones are going to get cheaper.
Breaking it down, Cook placed the blame on the strength of the dollar. Apple prices iPhones in dollars so as the currency has climbed, so have iPhone prices internationally resulting in untenable sticker shock.
“When you look at foreign currencies and then particularly those markets that weakened over the last year those [iPhone price] increases were obviously more,” Cook explained. “And so as we’ve gotten into January and assessed the macroeconomic condition in some of those markets we’ve decided to go back to more commensurate with what our local prices were a year ago in hopes of helping the sales in those areas.””
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