kkapoor

nunzy said:

kkapoor said:

I have family in India and all of them are iPhone users. However, most middle to upper class Indians have some family in the US or Canada or UK. They are wealthy enough to pay the premium in India for the iPhone but smart enough to just pick it up when they visit their family abroad or ask their family to bring one for them when they visit during the Christmas holidays. A couple of hundred dollars is still a couple of hundred dollars. The Indian mentality about spending money is what Apple really needs to understand. In my view, in order to grow sales in India Apple will have to accept a lower margin on each phone and build loyalty into the population through price. That will pay dividends in the long run.

Profit is more important than market share. Apple needs to maintain its margins. No race to the bottom.

The issue is marketshare not profitability; If you have minuscule market share then profit is constrained regardless . Not every market is alike. There is no requirement to race to the bottom. But you have to be price competitive. Indians recognize & appreciate Apple quality like anyone else but they simply won't pay a premium if they can easily acquire the product at a lower price.

I have family in India and all of them are iPhone users. However, most middle to upper class Indians have some family in the US or Canada or UK. They are wealthy enough to pay the premium in India for the iPhone but smart enough to just pick it up when they visit their family abroad or ask their family to bring one for them when they visit during the Christmas holidays. A couple of hundred dollars is still a couple of hundred dollars. The Indian mentality about spending money is what Apple really needs to understand. In my view, in order to grow sales in India Apple will have to accept a lower margin on each phone and build loyalty into the population through price. That will pay dividends in the long run.