Apple Stock News
iPhone sales are expected to decline in the coming quarter for the first time since the phone was introduced in 2007. This past quarter, iPhone sales barely increased leading analysts to ask Apple CEO, Tim Cook, if he planned on lowering the price during the earnings call. A question to which Cook replied “We don’t design to a certain price point. We design a great product and we make it priced at a great value.”
Barclays’ analyst Mark Moskowitz explained the he thinks lowering prices is a bad idea, given the strength of the iPhone franchise and the expected release of the iPhone 7. Furthermore, he said that lowering the price would make the iPhone feel more like a commodity saying, ““Psychologically, it’s a tightrope.”
According to the researcher Statista, in Q4 2015, the average cost of an iPhone for consumers was $691; almost triple the price of an Android phone, which cost an average of $231.
Various Apple rumor websites have reported that the company will be releasing a new 4-inch phone that will replace the iPhone 5s, the current cheapest iPhone. The new iPhone, rumored to be called the iPhone 5se, is supposed to have a faster processor and will be able to use Apple Pay. The new phone could potentially appeal to the more budget conscious Apple consumer, as well as to those who are not interested in having such large screen.