Apple is frantically trying to increase its market share in the price-conscious Indian market. The company started by pushing the sales of lower end models like the iPhone SE, 6 Plus and 6s Plus. Now the company has decided to stop selling iPhone SE, 6, 6 Plus and 6s plus in India. Starting now iPhone 6s will become the entry-level iPhone in India.
According to Economic Times, Apple has devised a strategy that focusses on value aspect of the phone. In other words, Apple is worrying less about the market share and instead pushing higher-end iPhones. With this move, the entry barrier for iPhone is increased by Rs 8,000 ($116).
Apple executives remarked that the production has been stopped last month and the distributors have already been informed of the same. However, retailers will continue selling the discontinued iPhones in India until stocks last. It is also worth noting that the discontinued models are already out of stock in Flipkart (leading ecommerce company in India) and amazon.in.
In 2018-19 Apple improved its revenue and profit by focussing on the high-end iPhones. Meanwhile, the iPhone sales plunged, however revenue wise the company did better than before. Apparently, Apple’s sales in the April-June quarter was better as the company had dropped iPhone XR prices via a promotion.
One of the leading Apple trade partners told ET that “Cupertino does not want Apple India to chase volumes by discounting at the cost of profit.” the trader added, “These models which are being phased out will increase the average selling price of iPhones in India and boost both profit and revenue.”
Meanwhile, another Apple executive said that Apple will continue to work on the affordability factor by offering buy-back and cashback offers. Do you think Apple will benefit from discontinuing entry-level iPhones in a price sensitive market like India? Let us know in the comments below.
[via The Economic Times]