The failure of the Apple — it’s wonderful (for us)!

At the beginning of 2019 became known that sales of the iPhone XS, Max XS iPhone and iPhone XR is far from the expectations of Apple. This is an open letter to investors said the head of Apple Tim cook. However, for emerging markets, including Russia, the news is only positive, I think leading analysts.

According to analysts, the weak sales of the iPhone XS iPhone XS iPhone Max and XR in the markets of developing countries “sober up” Apple. In the last few years, the company worked on a very greedy strategy and increased the price of their equipment worldwide. But Apple did not pay attention to the fact that the company’s influence has weakened in price sensitive markets, which contributed to the aggressive policy of Chinese smartphone manufacturers.

That is why in 2018 in many countries has been a serious decline in demand for iPhone, particularly the new model, which proved to be the most expensive in Apple’s history. More than anything Apple was affected by reduced demand for the iPhone in China, but, as said Tim cook in his open letter, an unexpected problem has occurred in many emerging markets.

Such a sharp decline in sales will force Apple to change its pricing strategy, and to do so promptly. Analysts, including experts from IHS, suggest that in 2019 from Apple, you need to wait for a decent price reduction on the new iPhone. Apple want to cater to the markets of developing countries, in order not to lose them.

And it’s not just empty predictions. As of 4 January 2019 the share value of Apple has fallen nearly 40% since the peak in October 2018. If in October last year, the market capitalization of Apple for the first time in history exceeded a trillion dollars, now it is already 674 billion. This serious decline will require the company to decisive action.


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