Price Reduction: A Welcome Move for Apple Loyalists in India?

In a bid to boost sales and stay competitive, Apple has reduced the prices of its Pro iPhone models in India by 3% to 4%. The move comes after the country’s government slashed import duties on imported smartphones to 15% from 20%.

Price Cuts Ranged from ₹300 to ₹6,000

The price reduction is applicable for various iPhone models, including:

  • Made-in-India iPhone 13, iPhone 14, and iPhone 15: ₹300 (approximately $3.6) each
  • iPhone SE: ₹2,300 ($27.5)
  • iPhone 15 Pro and Pro Max: Up to ₹6,000 ($72)

This is the first time Apple has lowered prices on current-generation Pro models in India.

Slowing Demand for iPhones in China: A Bottleneck?

Market research firm Canalys reported this week that Apple’s smartphone shipments in China had declined by 6.7% in the quarter ended June compared to a year earlier. According to Canalys research analyst Lucas Zhong, "Apple is facing a bottleneck in mainland China."

India Emerge as Key Overseas Market for Apple

India has emerged as a key overseas market for Apple, with the company’s revenue from the country jumping 42% to $8.7 billion in 2023 compared to the previous year. iPhone shipments in India also climbed 39% to 9.2 million units in 2023, making it Apple’s fifth-largest market for its phones.

Market Share Surge: Apple Expands Presence in India

Apple’s share of the country’s smartphone market is also surging as the domestic economy improves. The company’s market share had reached double digits in Q4 last year, although it has fallen since then, according to UBS and Counterpoint.

Manufacturing Plans: Apple Aims for Expansion in India

News outlet Moneycontrol reported Friday that Apple plans to start assembling the Pro models of its next-generation iPhone models in India this year. This move is seen as a significant expansion of Apple’s manufacturing presence in the country.

Manufacturing Plans

Google announced last year that it too will begin manufacturing its smartphone, the Pixel line-up, in India starting 2024.

Apple’s Growing Presence in India: A Key Market for the Tech Giant

India has emerged as a crucial market for Apple, with the company looking to expand its presence and sales in the country. The price reduction is seen as a strategic move by Apple to boost sales and stay competitive in the Indian market.

Apple’s Growth in India

  • Revenue from India jumped 42% to $8.7 billion in 2023 compared to the previous year.
  • iPhone shipments in India climbed 39% to 9.2 million units in 2023, making it Apple’s fifth-largest market for its phones.
  • Apple’s share of the country’s smartphone market is surging as the domestic economy improves.

Conclusion

The price reduction on Pro iPhone models by Apple in India is a welcome move for loyalists and a strategic step to boost sales. However, iPhones remain prohibitively expensive in India, with even the cheapest model costing $1,550. The growing demand for iPhones in India and Apple’s expanding manufacturing presence are key indicators of the company’s growth plans in the country.

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