Apple Lossless Audio CODEC (ALAC), wants to make phones cheaper iPhone following the weak sales recorded globally for the current series of models, and to do this it goes a rather difficult way, but the objective could be fulfilled. Many of Apple's partners have experienced substantial sales declines following the failure of the latest iPhone models, and the Americans are taking advantage of this and asking them to reduce their prices by up to 10% for the components they sell.
Apple knows that the latest models of the iPhone are too expensive for what it offers, but of course it does not give up profit, so it asks its partners to bear the costs, because its fans don't do it anymore. A 10% reduction in selling prices for the iPhone would be a good start to revitalizing sales, but I don't think we'll see such drastic reductions in asking prices for Apple phones, so don't get too excited.
Apple cheapens iPhones "on the back" of its partners
Apple's partners had higher and 20% revenue declines compared to the previous year, so it is quite clear how serious the situation is, the Americans are looking for a quick solution, and buying cheaper components is the only way now. Although Apple asks for price reductions for components, its partners could refuse to offer them, even if we are only talking about 10%, and not higher percentages, for many this is the very profit they make.
According to Liao's supply chain checks, Apple has asked most of its Asian suppliers to cut their prices by about 10% to help offset the hit from the US-China trade battle. Earnings from Asian assemblers like Foxconn, Pegatron, display maker of Japan Display Inc., audio part supplier AAC Technology Holding, and others "will be terrible for the first half of 2019," Liao said.
Apple not only has to lower the prices of iPhone phones, but also has to offer new important functions to convince customers to buy its products, which in 2018 did not really exist for customers. If Apple manages to obtain 10% price reductions from partners for the purchased components, then it is very possible that the price changes will also be felt in the new iPhone models launched in 2019.
