Apple continues price adjustments in India, drops iPhone 6s series by up to 16%

AppleInsider

Pricing on the iPhone 6s and iPhone 6s Plus in India has been reduced by between 11 and 16 percent, reflecting Apple's most aggressive approach yet with a new flagship handset in the world's second-most-populous country.

The price cuts were portrayed by The Times of India as a way for Apple to boost what it called "flagging sales" in the country since the launch of the iPhone 6s series. The entry-level 16-gigabyte iPhone 6s can now be had for 48,499 rupees, off from its introductory price of around 62,000 rupees.

Even with the new pricing, the iPhone 6s is still considerably more expensive in India than the U.S., based on current exchange rates. 48,499 Indian rupees equals about $732 U.S., while a brand new unlocked 16-gigabyte iPhone 6s is available for $649 in America.

New Indian pricing on the iPhone 6s lineup comes just after Apple slashed the price of its entry-level iPhone 5s by almost half in the country. While the iPhone 5s was selling for 44,500 rupees ($663) in September, it can now be had for 24,999 rupees ($372).

Until relatively recently Apple has struggled to gain marketshare in India, where the triple threat of high import taxes, a weak currency, and low wages compared to the West often prices iPhones out of people's hands. The iPhone 6s started at 62,000 rupees -- or about $955 U.S. -- when it launched in India this October, making it $306 more expensive than in America.

The Times shared iPhone 6s series pricing from what it said is one of India's "biggest" websites. Current exchange rates are also included:

• iPhone 6S (16GB): Rs 48,499 ($732)
  
• iPhone 6S (64GB): Rs 62,849 ($948)
  
• iPhone 6S (128GB): Rs 74,940 ($1,131)
  
• iPhone 6S Plus (16GB): Rs 61,999 ($935)
  
• iPhone 6S Plus (64GB): Rs 75,499 ($1,139)
  
• iPhone 6S Plus (128GB): Rs 85,999 ($1,297)

Despite exchange and pricing struggles, Apple's total sales in India crossed the $1 billion mark in a 12-month span for the first time this year. Apple managed a 44 percent increase in year-over-year sales and doubled its net profits.

radarthekat

My guess is that Apple is testing price points to determine whether India can support a sufficient iPhone market to make it worthwhile to begin manufacturing iPhones there, which would then save Apple on onerous import levies, gaining the company back much of the profits given up by the lower prices it's charging.  

rshnvjy

Apple should really think about discontinuing the 16 GB model as however low it's priced, chances are that people will rate poorly of customer satisfaction when they find out that their apps and pictures eat up a majority of the space that's available, especially with the 6s' higher res 4K camera with Live Photos.

For many people in India, the 16 GB model is the entry level device and for the huge sum of cash they're paying upfront (contracts don't work here), they are very well likely to be disappointed.

Also, how much less money are they going to make if they discontinue it and price the 64 GB model a few notches lower, but not as low as the 16 GB one? It is at least something that they should consider doing.

plovell

I don't know for sure but I expect that the price difference is less than this article says. That's because the Indian price probably includes taxes, as is the case for Britain, France, Germany, Australia, etc etc. Anyone care to comment either way?

foggyhill

rshnvjy said:

Apple should really think about discontinuing the 16 GB model as however low it's priced, chances are that people will rate poorly of customer satisfaction when they find out that their apps and pictures eat up a majority of the space that's available, especially with the 6s' higher res 4K camera with Live Photos.

For many people in India, the 16 GB model is the entry level device and for the huge sum of cash they're paying upfront (contracts don't work here), they are very well likely to be disappointed.

Also, how much less money are they going to make if they discontinue it and price the 64 GB model a few notches lower, but not as low as the 16 GB one? It is at least something that they should consider doing.

Right... I got a 16GB right now, and I'm OK with it.

revenant

rshnvjy said:

Apple should really think about discontinuing the 16 GB model as however low it's priced, chances are that people will rate poorly of customer satisfaction when they find out that their apps and pictures eat up a majority of the space that's available, especially with the 6s' higher res 4K camera with Live Photos.

For many people in India, the 16 GB model is the entry level device and for the huge sum of cash they're paying upfront (contracts don't work here), they are very well likely to be disappointed.

Also, how much less money are they going to make if they discontinue it and price the 64 GB model a few notches lower, but not as low as the 16 GB one? It is at least something that they should consider doing.

depends on your country's import rate. if it is new is the import tax higher? if it is last year, is it less? if the unit is worth more (such as the 6splus) is the import tax higher than an older cheaper 5s? 

i agree with you, 16gbs is too low, and not everyone wants to pay for music in the cloud or stream it. 

fallenjt

Don't expect the Indian would have the same buying power as the Chinese since their income per capita is around 1/4-1/5 of the Chinese. The Chinese people by their culture of spending can sacrifice 3 month salary for an iPhone, not Indian.

maestro64

radarthekat said:

My guess is that Apple is testing price points to determine whether India can support a sufficient iPhone market to make it worthwhile to begin manufacturing iPhones there, which would then save Apple on onerous import levies, gaining the company back much of the profits given up by the lower prices it's charging.  

Yes I agree that Apple is probably testing the price point waters, however they will not manufacture there. If you saw the 60 minutes interview, Cook made it very clear why China, and this is the issue everywhere but China. China in vested in and continues to invest in the infrastructure to support skilled manufacturing. As he said they provide Votech training to the workforce and no where else in the work including the US is providing the skills to the work force to build Apple products. It is cheaper to build the complete phone in China and ship it to other parts of the world than it is to import all the pieces into a country like India and use local labor to build it since they lack the skill to do the work.

On a different note the market will look at this as a fire sale and Apple is hurting and they are trying to dump product in India, so be prepare for a bad quarter.

cnocbui

radarthekat said:

My guess is that Apple is testing price points to determine whether India can support a sufficient iPhone market to make it worthwhile to begin manufacturing iPhones there, which would then save Apple on onerous import levies, gaining the company back much of the profits given up by the lower prices it's charging.  

Nokia, and later Microsoft, had interesting experiences with manufacturing phones in India. It's quite possible Apple would look at that experience and have a good think before proceeding with such a venture.

mvigod

revenant said:

rshnvjy said:

Apple should really think about discontinuing the 16 GB model as however low it's priced, chances are that people will rate poorly of customer satisfaction when they find out that their apps and pictures eat up a majority of the space that's available, especially with the 6s' higher res 4K camera with Live Photos.

For many people in India, the 16 GB model is the entry level device and for the huge sum of cash they're paying upfront (contracts don't work here), they are very well likely to be disappointed.

Also, how much less money are they going to make if they discontinue it and price the 64 GB model a few notches lower, but not as low as the 16 GB one? It is at least something that they should consider doing.

depends on your country's import rate. if it is new is the import tax higher? if it is last year, is it less? if the unit is worth more (such as the 6splus) is the import tax higher than an older cheaper 5s? 

i agree with you, 16gbs is too low, and not everyone wants to pay for music in the cloud or stream it. 

Yes. 16GB is far too low.  Apple knows it and simply uses it as a pain point to squeeze another $94 in profit out of the end user.  This is a shareholder friendly move but not a customer friendly move.  In other words this is a short term boost to earnings but it comes at the risk of lower unit sales, repeat business and customer satisfaction.  Apple obviously felt the shareholders were more important than the customers like us when they pushed this strategy.  

Just because you may be able to price something higher doesn't mean you should.  Costco for example won't markup anything more than 15% even if they can get much more for the items.  If they get a hot item that could sell for 100% margin they will never exceed 15%.  They say it is about the customer and serving them first.  Apple used to feel more like Costco.  These days not as much.

isteelers

It used to be that Apple pushed people to go $200 higher for the same 64GB.  Judging by sales to switchers and repeat buyers customers don't seem to feel fleeced from the deal. Also, Apple's strategy seems to have done better in India with the 44% year over year growth. Apple may indeed be testing the waters there price wise, but just as in China they seem to know what they are doing.