Apple cuts prices for older devices, more cuts are expected during the holiday period
NEW DELHI: This is perhaps one of the most combative charges that Apple is doing in the Indian market and the aggressive price of Rs 64,900 - for the entry version of the latest version iPhone 11 - He has seen beautiful cuts in the lower variants ranging from iPhone 7, to the iPhone XR and going up to the iPhone XS . The cuts are in the range of 10-30%, and the maximum savings for a customer will be about Rs 20,000, which could increase further as we enter the holiday season .
The move by Apple is likely to see the company claw back its market share in the Indian premium devices market as the Cupertino-headquartered electronics giant plans to give a tough fight to traditional Korean rival Samsung and China's Oneplus . The 32GB version of the iPhone 7 will now come below Rs 30,000 after a price cut of Rs 10,000.
Like in other markets (including the big one China), Apple has been facing a difficult time in India as well, where the sales of iPhone were estimated to have fallen to 1.7 million units in 2018 against the 3.2 million units in the previous year, as per numbers sourced from research company CounterPoint.
The company hopes to turn this around globally with the iPhone11. India - with a turnover of $2 billion (which is a speck in the company's worldwide revenues) -- is a key component of Apple 's future strategy, something that has been emphasised by chief executive officer Tim cook Time and again.
This explains why the company has reduced the margin it generally charges on prices announced in the United States. This time, the premium charged in India is around 28% (at US prices) compared to 48% charged at the time of launch of the previous device, XS, said Tarun Pathak, associate director of Counterpoint .
Pathak expects that Apple will "definitely" sell more than what it sold in 2018. "It can be challenging for Samsung."
Navkendar Singh, research director (India and South Asia) at IDC, said more price cuts are in the offing. "As we enter the holiday season , it will get more aggressive and we expect the highly-popular XR devices to easily cost below Rs 45,000."
The company has also announced its streaming service Apple TV+, which will cost Rs 99 per month when it starts in November. The gaming service Apple Arcade It will also cost Rs 99 per month.