You are in a very price-sensitive market and your competitors are far ahead. Albeit in top-end iPhone models, you stand still not on top of the pile! So, what do we have next for Apple in Indian markets?
Here we go, as local media – The Economic Times in its marquee reported ‘Apple stops selling iPhone SE, 6, 6S, 6s Plus in India.’
Apple iPhone SE, 6, 6 Plus, 6s Plus Phased out of Indian Markets
Market strategy as one may presume, going by what the news indicates, but Apple did not get it right in India on the pricing front. Also, it has brought down the number of distributors to two from five the previous year and also stopped arbitrary discounts to regulate pricing to an extent.
How the above measures augur, only time will tell! Meanwhile, for FY 2018, Apple logged Rs 13,097 crores recording 13% higher revenues even as it doubled up profits to the tune of Rs 896 crores as per mandatory registrar of Companies disclosure.
These iPhone models were considered ‘low priced’ in Apple India’s stable, and which did not impact the minds and catch fancies of Indian consumers due to ‘high entry-level prices.’ However, the US website of Apple still displays these models indicating their continuity and popularity.
Citing industry insiders, stocks are down for these models, and local distributors have been alerted to sell out so that new entry-level iPhone 6s models will be brought in their place.
Etailers Amazon and Flipkart have also ‘stocked out’ these models of Apple iPhones, and it is quite obvious that stocks will not be replenished.
Succumbing to market conditions to gain a toe-hold in Indian markets for quite some time now, Apple resorted to heavy discounting and pricing strategy at the cost of eroding revenues that affected adversely its top and bottom lines. The infusion of new models and phasing out of old models will average out the revenue losses and bring semblance to the balance sheet, say insiders.
Thus in effect, phasing out of the iPhone models in the current crop will trim costs and pare losses to an extent.
Earlier, media reported the shipping of Apple iPhone 6 and iPhone 7 from India to the European Union establishing India perspective and promising manufacturing base.
Thus, from moving boxes (volumes as they say) to getting value-wise increment is what Apple India may now seek to garner, even as new and pricey models will be brought in boost margins and justify its Indian presence.