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Shira Ovide

Apple Should Cut iPhone Prices If It’s Serious About Services

Each fresh gadget can be used to upsell users on Apple Music, iCloud data storage, video-game subscriptions and other products.

Apple needs to give people more reasons to ditch their older phones.

Apple needs to give people more reasons to ditch their older phones.

 Photographer: David Paul Morris/Bloomberg

Stealthy or direct price cuts on iPhones have cushioned the blow for Apple Inc. It should go even further if it’s serious about changing its complexion.  

Apple continued to take a hit from a smartphone market that has stopped growing, according to the results of its fiscal third quarter ended June 29, which were released after the market closed on Tuesday. Apple said iPhone revenue fell 12%, about as much as analysts had expected, and total company revenue inched up 1%. The company’s forecast for the quarter ending in September mostly implied more of the same.