Apple has slashed iPhone prices in India by around 25% according to reports.
Sources told Reuters that the iPhone could be picked up for a significant discount, with the iPhone XR reduced by at least 17,900 rupees ($259) from its retail recommended price when a price cut and credit card cashback offer was taken into account.
The source said that “Apple is going to change their game” and that the company will adjust prices on other devices in markets around the world depending on demand and stock.
On the Apple India website, a 64 GB iPhone XR was available to purchase for 76,900 rupees but can be purchased for as little as 59,000 rupees at stores.
Some suggest that the pricing is a “short-term promotional offer” to encourage sales and test the waters in the market, a territory where Apple has struggled to make a significant impact in recent years.
With the global smartphone market saturating, Apple is naturally turning to new territories to find growth, although it has had little success so far.
In China, for example, the company has struggled to compete with lower-cost rivals, whilst Indian consumers are less likely to own a smartphone and those that do prefer low-cost smartphones, with the majority below $250.
Indeed, Indian continues to be a very price-sensitive market, and Apple will struggle to shift some of its high-end stock in a market where the iPhone costs more than four months’ wages.
The average Indian salary is around $300 per month, though this figure is rising.
Research firm Canalys suggests that the number of iPhones sold in India in 2018 fell by more than 40% compared with 2017’s figures, with Apple’s market share dropping to just 1%, down from 2% the year prior.
Lowering prices in the market could be the right strategy, but until Apple sells a truly low-cost phone, perhaps a successor to the iPhone SE, then it will struggle to make a dent in the market and grab share and audience in India.
iPhone’s pricing, even with a 25% discount, is still out of reach for many consumers, and while there is certainly demand in the business and luxury goods sector, the general consensus is that the iPhone is simply too expensive for the majority of consumers.
What are your thoughts on Apple’s latest price cut? Will you be taking advantage of a cheap iPhone when you’re next in India? Let us know your thoughts on Twitter: @AppleMagazine.