Apple may reduce iPhone prices as revenue falls

Apple boss Tim Cook has hinted it could lower iPhone prices in some places in an attempt to boost falling sales.

"The customers are holding on to their older iPhones a bit longer than in the past”

“When you pair with the macroeconomic factors, particularly in emerging markets, it resulted in iPhone revenue that was down 15% from last week,” Cook said.

“One of those factors, weak macro-conditions in some emerging markets, was significantly more severe than we originally foresaw, especially in Greater China.

That challenge was compounded by quarterly iPhone upgrades that were lower than we anticipated.” Cook explained.

Apple CEO said the foreign exchange is another key factor behind the slow iPhone sales. "The relative strength of the US dollar has made our products more expensive in many parts of the world”.

Overall, the firm's revenue was down 5% from a year ago to about $84.3bn (£64.5bn).

The firm has blamed the issue partly on an economic slowdown in China.

Cook said the tech giant had started this month to re-price its phones to shield customers from the impact of currency fluctuations.

"What we have done in January in some locations and [for] some products is essentially absorb part or all of the foreign currency move as compared to last year," he said.

Still, executives said they expected the firm's challenges to continue.

Apple predicted revenue for the three months to 31 March of $55bn-$59bn - suggesting a drop of at least 3.4% year-on-year.

The firm's share price has dropped by around one third since October, amid investor concerns that buyer appetite for iPhones is weakening.

However, Apple shares gained more than 4% in after-hours trade on Tuesday, as the firm proved more resilient than expected.

Quarterly sales revenue dropped by more than 25% in its Greater China region, which includes Hong Kong and Taiwan, compared to the year before.

Sales also slipped about 3% year-on-year in Europe, but in the Americas - the firm's single biggest region - sales were up almost 5%.

Revenue from the services business also jumped 19% to a record $10.9bn in the quarter, which ended on the 31 December.