Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Apple is going to cut down the prices of its various iPhone series as China is preparing for a mega online shopping festival tagged ‘6.18’. This move may help AAPL stock price to rebound in the coming days. Now AAPL is in the red.
As economies begin to reopen worldwide, businesses must devise means to find a balance between the cost of production and selling prices. Careful attention to forces of demand may also help businesses fix these prices accordingly. Should there be increased demand, prices can be significantly raised to create a good profit margin for businesses to take advantage of and vice versa. Businesses however may cut prices in general to drive demand for products especially those classified as luxury items. This is the case with Apple Inc (NASDAQ: AAPL), who recently slashed the iPhone price in China ahead of 6.18, one of China’s big online shopping events.
Enviable Apple Corporation
Apple is by far one of the largest business entities in the world. It is headquartered in Cupertino, California and it became the first publicly traded multinational company in the U.S. to attain a market capitalization of $1 trillion on August 2, 2018. The company has an impressive history dating back to April 1976. The company founded by Steve Jobs, Steve Wozniak, and Ronald Wayne started with the sales of Wozniak’s Apple I personal computers. From inception to date, the company has truly transcended and outdone its humble technological beginnings to being one of the world’s most accomplished phone and computer manufacturers. Now experts believe that Apple has all chances to become a $2 trillion company in the next 4 years. So, time will show.
Apple’s Novel Products
Steve Jobs at the Macworld Expo on January 9, 2007, announced the launch of the iPhone mobile device which went on sale later in June and sold around 270,000 units within the 30 hours it went on sale. The progression from the launch of the first iPhone to higher grades up to the recent iPhone 11 Pro Max has earned Apple the tag for class and quality.
Apple Inc also produces other widely used products including iPods, Macintosh, iPad, Apple Watch, Apple TV, HomePods, Softwares, and Electric Vehicles. For every of Apple’s inventions, a touch of class, elegance, and optimal value is the emphasis.
Apple Inc (NASDAQ: AAPL) produces quality devices but does not compromise cost in any way. The company’s products are made for those with an above-average budget which qualifies them as gadgets not made for everyone. Its latest phone, The iPhone SE was released on April 15, 2020, with an official price of about $344. This cost is relatively lower when compared to the previous iPhones released such as iPhone XS which costs $999. The cost may be attributed to the coronavirus pandemic and serves as Apple’s way of attracting customers in the face of the economic impacts of the coronavirus.
Chinese Market in Focus: Apple Lowers iPhone Prices
China has a very large population and the reduced cost of Apple’s latest phones including the iPhone SE series, and iPhone 11 series can bring about a massive increase in sales which will improve revenue for the company. As reported by CNBC, Discounts will be applied to the iPhone costs on the major online malls participating in the 6.18 shopping festival. With these discounts, iPhone 11 64GB model will be for 4,779 yuan ($669.59), down about 13%, and iPhone SE now will be at the prices at 3,099 yuan, down from 3,299 yuan. These discounts cut across a wider range of Apple’s products.
Apple is a premium brand and the decision to apply lower prices to its iPhone models must have followed critical market analysis and forecasts. Hopefully, this price action will impact Apple’s stocks which closed 1.23% on June 1. Today at the time of writing, AAPL stock is trading at $319.45, which means that it is 0.75% down.