While Apple’s first-quarter earnings beat analysts’ estimates, CEO Tim Cook warned that Apple saw some downside trends in the middle of this quarter, which could cut revenue by $4-8 billion.

The main factors that will help Apple fall behind financially this quarter were the closure of businesses in China due to COVID-19. Among them are many Apple assembly companies. There is also talk of the loss of the Russian market, rising inflation leaving customers for less and less money, and a general lack of components that the industry has long suffered from.

Chris Caso, Apple analyst at Raymond James, believes the company will have to raise iPhone 14 prices outside of the US in response to lower national currencies in different countries.

Assuming that the situation in China has normalized, we think September will be good. However, if exchange rates don’t change by then, Apple will have to raise prices in local currencies when new iPhones hit the market. When this has happened in the past, rising local prices have negatively impacted unit demand. Finally, revenue from services is expected to increase, but will slow from year to year. Chris Caso

In dollar terms, iPhone prices are much higher in most countries outside the United States, so any further increase could negatively impact the company’s smartphone sales. Source