Apple Stops Selling Lower-Cost iPhones in India

Apple has reportedly stopped selling iPhone SE, iPhone 6, iPhone 6 Plus, and iPhone 6s Plus in India, meaning anyone in the market for a new Apple smartphone will have to shell out more for a later model.


According to The Economic Times, the strategy indicates Apple is no longer prioritizing shifting iPhones in the country by volume and is instead refocusing efforts on increasing its revenue there.

To that end, Apple's distributors in India are said to be informing retailers that supplies of the above iPhone models have stopped and the new "entry-level" iPhone will be the iPhone 6s. This will increase the starting price of an iPhone in India by almost Rs 8,000 (around $116).

Apple has been assembling the iPhone SE in India as well as the iPhone 6s and iPhone 7 over the last couple of years. Given the shift in strategy, idle capacity in these factories may now be used to expand production of other models, according to the report.

The decision is said to have been taken after Apple improved its revenue and profit in India by 12 percent over the last year, despite selling less iPhones than the previous year. Apple India’s sales in the April-June quarter went up after it brought in a promotion to drop iPhone XR prices.
"Cupertino does not want Apple India to chase volumes by discounting at the cost of profit," said one leading trade partner of Apple. "These models which are being phased out will increase the average selling price of iPhones in India and boost both profit and revenue." Apple India declined to comment on the matter.
In the Indian market, Apple ranks 11th and accounts for just one percent of India's phone sales, and sold fewer than one million iPhones during the first half of 2018. Comparatively, rival smartphone maker Xiaomi sold more than 19 million during that period, according to data gathered by Counterpoint Research.

According to a recent report, Apple CEO Tim Cook is believed to be working behind the scenes to "remold Apple's failing India strategy," in bid to revamp the company's presence there.

Apple has also been re-focusing efforts in India in hopes of expanding production outside of China in the wake of the ongoing trade war between the United States and China. Last summer, Apple detailed a new India strategy with official retail stores, overhauled relationships with independent retailers, more frequent sales, and improved apps and services.

Some of these plans have started to come to fruition, as Apple has now finalized a list of locations for its first retail store in India.

Tag: India


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5 weeks ago

Excellent News. India should not be taking advantage of Apple by buying iPhones At such cheap prices. They should pay as much as any other country!


What are you on about?
Rating: 18 Votes
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5 weeks ago

Excellent News. India should not be taking advantage of Apple by buying iPhones At such cheap prices. They should pay as much as any other country!


Why? most the the people there don't have as much money as everywhere else. hence why apple sells so much less there, and other companies sell 19 million phones because of their lower price point... you must not travel much lol
Rating: 16 Votes
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5 weeks ago

Excellent News. India should not be taking advantage of Apple by buying iPhones At such cheap prices. They should pay as much as any other country!


What cheap prices? They are paying high prices for old models. $430 for an iPhone 6s. I can get those used for $130 on eBay. I could pick up a used iPhone 8 for those prices. I'm sure there are a lot more iPhones in India than Apple's sales indicate. They're just buying used models from around the world.
Rating: 10 Votes
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5 weeks ago

Excellent News. India should not be taking advantage of Apple by buying iPhones At such cheap prices. They should pay as much as any other country!

You misread the article. The price isn’t $116; the lowest priced available phone increased by $116.

But even so, your post still doesn’t make any sense, so there’s that....
Rating: 8 Votes
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5 weeks ago
I wonder why Apple doesn't just make low cost models for these markets? Rather than trying to hock old models at lower prices. Something like a Nokia 7.1 or Moto One and sell them at $350. They'll still have their high profit margin and people may be more apt to buy a new model than a four year old model.
Rating: 8 Votes
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5 weeks ago
well they can hardly continue selling a 4 year old design that won't even work with the newest OS
Rating: 2 Votes
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5 weeks ago
I don't get it.
They're discontinuing the 6s Plus but will continue to sell the 6s?
Either the wording is imprecise, or Apple is making a curious decision eschewing the Plus size model along with the 6 series.
Rating: 2 Votes
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5 weeks ago

iPhone is DBA (dead before arrival) in India: they are very price conscious so they'll almost always pick a cheap Android phone. Xiaomi is usually the most popular.

The audience that Apple is targeting in India would rather buy it cheaper from Hong Kong, Dubai or other countries when they go for vacations or ask their family members to get it for them as it is much much cheaper to get it from those countries than from India.

The SE must not be selling very well in India. Ironically, my guess is there would be a solid minority of buyers who would love to still get an SE in the U.S.

I wonder what the sales ‘threshold’ is (in units solds) for Apple to continue offering a certain product for sale.

Indians, like most Asian markets, love big phones, which is why most phones that are sold in India are around the 5.7" screen sizes from Xiaomi, OnePlus, Samsung etc.

It’s more than just the price. They prefer brands from companies based in Asia rather than the United States or the Commonwealth countries.

There is still lingering resentment from the years of British oppression they lived through. In the case of the United States it’s guilt by association because the USA originated from British colonies.

Not sure about other Asian countries but you are very wrong about India in that regards. Apple is an aspirational premium brand and people love to flaunt it there but not the old models rather the latest ones.

There are so many phones in India which are as good or better than iPhone's and they sell at 50% less than the price of Iphone.

Apple really needs to release an SE 2 Full screen as big as the current SE or iPhone 6/7/8 and have internals of the iPhone XS or the upcoming 11. That would be the perfect thing.

THIS!
And also, the services from Apple are pathetic in India. Maps is terrible, Apple Music has very less selection of regional content, iCloud is meaningless in a country where internet connection is unstable, Siri is hopeless (well, it is the same worldwide) in comparison to G-Assistant or Alexa. But hopefully with Apple concentrating in a lot of India-centric features in iOS 13, maybe, just maybe they may be able to market it, especially now with the manufacturing of the latest models, which would in turn help them lower the prices by circumventing the import taxes and duties.

Apple really needs to advertise how the processing prowess of their phones are better than the competitors, in a tech-loving country where people love to get the phones with the latest processors and with more RAM. When Xiaomi can come out with a 250 USD Poco F1 with Snapdragon 845 and 6GB of RAM, I don't understand what's holding Apple back with advertising how their A-series are so much more powerful than the Snaps, Kirins and Exynoses.
Rating: 2 Votes
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5 weeks ago
Excellent News. India should not be taking advantage of Apple by buying iPhones At such cheap prices. They should pay as much as any other country!
Rating: 2 Votes
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5 weeks ago

Excellent News. India should not be taking advantage of Apple by buying iPhones At such cheap prices. They should pay as much as any other country!

Then we should start with US where people pay for iPhones and Macs less than almost any other country.
Rating: 2 Votes
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