Apple sets new Q4 records in India, Cook says 'locally relevant prices' helping
Apple CEO Tim Cook said “locally relevant pricing” of the iPhone 11 was one of the reasons for the good customer response for the new range. Cook was responding to questions after announcing Apple’s Q4 results, what he called “a groundbreaking fiscal 2019 with our highest Q4 revenue ever” powered by growth in services, wearables and the iPad.
Apple has recorded a revenue of $64 billion, an increase of 2 per cent from the year-ago quarter with international sales making up 60 per cent of the numbers.
The Apple CEO, in the earnings call, said they had established new Q4 records in “many major developed and emerging markets” including India. Also, it was an all-time revenue record for Mac in India. The wearables category too was at an all-time high in all markets. He also spoke about how the ECG app, available in India for a few weeks now, is “a widely celebrated illustration of Apple’s commitment to your health”.
Cook was also optimistic about the prospects of the new iPhone and said the “price moves” made by Apple “have been smart and well-received and do show a level of elasticity”. Apple had launched the new iPhone 11 at a price point lower than the iPhone XR which the new phone was succeeding. “But the most important thing by far is the product. And I think we’ve got the best lineup we’ve ever had. And the customer response to the product is what the product does for them is really incredible.”
In India, the new phones have been a hit, though dealers have been struggling with supplies and most of the iPhone 11 models are sold out because of the festival season demand. Recently, Jun Zhang of Rosenblatt Securities had claimed that , an increase of 15 per cent over the iPhone XR.
Alluding to pricing in markets like India, Cook said the company had picked “locally relevant prices” and “in some cases where the dollar had become stronger” taken and “exchange rate that would have reflected a while back instead of the current exchange rate”. Usually this exchange rate buffer is what makes Apple products more expensive in markets like India, where the locally currencies can tend to fluctuate. “In other words, we tried to stay as close as we could to a local price point that we knew was effective for that particular market,” he said, adding how the US pricing too has been “extremely well received”.