Apple to axe its cheapest iPhones in India; hopes to reinforce its premium image

Apple to axe its cheapest iPhones in India; hopes to reinforce its premium image
Apple's most expensive iPhone, the XS Max

Apple assembly partner Wistron was recently granted permission to build a new iPhone factory in India. This will allow Apple to circumvent the high tax rate currently slapped on imports. But rather than making iPhones more accessible to consumers, the company appears to be preparing quite the opposite.

According to three senior industry executives, the Cupertino giant will soon begin implementing a new strategy in India that hopes to reinforce the ‘premiumness’ and exclusivity of its brand. As part of this, Apple has reportedly begun informing local stores that it wants to exit any outlets that sell less than 35 iPhones per month. The company is also no longer interested in small stores of less than 350-400 square feet.

Instead, Apple hopes to expand the number of locations that sell Apple products only, with a focus on locations that are 500 square feet or larger. The company also hopes to improve its relationship with existing retail partners.

Alongside this focus on larger stores, Apple is also expected to increase the entry iPhone price soon. According to the executives, the Silicon Valley-based company will cease all sales of the iPhone 6 and iPhone 6 Plus. As a result, the iPhone 6s and iPhone 6s Plus will become the cheapest devices on offer. But rather than lowering their price, it's said that Apple plans on maintaining the lineup's existing prices. This means that, once the older models have been axed, the entry-level model will cost around 5,000 rupees ($72) more.

At the moment, it’s unclear how Apple’s latest strategy for India will play out in the long run considering how local consumers tend to favor cheaper devices. But from the look of things, the company is no longer interested in market share and will instead be focusing solely on its revenue numbers.

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18 Comments

1. antroid

Posts: 396; Member since: Jan 24, 2018

And I thought they wanted to made it more popular in India, no logic

12. AbhiD

Posts: 856; Member since: Apr 06, 2012

Apparantly, PA misunderstood what was the original news. That $72 entry price increase will be because Apple will cease to sell cheaper models and move to higher priced ones. Not because they intend to increase prices of iPhones already selling. They don't. A company has to be seriously dumb to increase prices of their phones in a market where their phones are already priced 1.5-2x compared to USA etc. Which Apple isn't IMO.

20. Mike88

Posts: 438; Member since: Mar 05, 2019

This is great strategy actually,, people want to buy iphone for its premium and luxury feeling... But there are those who just want to experience ios and get the cheapest option... Apple's target consumers are those who buy their high end products,, get impressed and buy more high end products like someone who buy iphone xs will likely buy airpods and watch probably ipad too and iPad user will need pencil and folio keyboard....this is how they want to expand as a premium brand...people who just want to experience ios with iPhone 6 won't bring any profit.

2. OneLove123

Posts: 1257; Member since: Aug 28, 2018

So, how are they going to sell 100 iPhones there with the price going up? Half of the Asian there doesn't even have money for food.

13. AbhiD

Posts: 856; Member since: Apr 06, 2012

Nothing like that.

21. Zeeya

Posts: 331; Member since: Mar 17, 2013

You sure?^^ you should travel more... go see the world..

4. Shubham412302

Posts: 589; Member since: Nov 09, 2011

LOL. Samsung Galaxy S10+ is already cheaper than iPhone XR. Now they planing to increase the prices.

5. LawnBoy

Posts: 203; Member since: Feb 23, 2019

ANALYSTS: Mr. Cook, sales have been declining globally for the past year. What are your plans to stimulate sales growth amid strong competition from Samsung and Chinese manufacturers? APPLE: Well we plan to raise prices of course.

6. drunkenjay

Posts: 1700; Member since: Feb 11, 2013

how dirty is this company wtf?

7. phonefanboy

Posts: 51; Member since: Oct 06, 2011

At this point, Tim Cook is stealing money from Apple. The logo can sell itself just fine; evident by all the dumb decisions Cook been making.

8. Vancetastic

Posts: 1754; Member since: May 17, 2017

It will be most interesting to see how this plays out, if true.

9. stijnvbml

Posts: 76; Member since: Feb 20, 2013

Well, since iPhones are probably to expensive for most Indians anyway, they may as well focus only on the few that can afford it. But they should improve the quality of services in India to justify the higher price tag imo.

10. cncrim

Posts: 1590; Member since: Aug 15, 2011

Where ís the source or this is just click bait? Dont think Apple stupid enough to do this.

14. lyndon420

Posts: 6876; Member since: Jul 11, 2012

This is probably the funniest thing I'll read all day!! lol Raise prices at Walmart, and then maybe I'll start shopping there. /s

* Some comments have been hidden, because they don't meet the discussions rules.

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