Apple Cuts iPhone XR Prices in India

[MacRumors]

Apple has reportedly cut iPhone prices in India by around a quarter, following a similar move by the company in China.

Sources who spoke to Reuters on Thursday said the price of an iPhone XR with 64GB storage has been reduced by at least 17,900 rupees ($259), taking into account a price cut and a credit card cashback campaign.

"Apple is going to change their game," one of the people said, adding the company could also adjust prices for other devices depending on their demand.

On Apple’s India website, the price of the 64 GB iPhone XR was unchanged at 76,900 rupees, but is on sale for less than 59,000 rupees at stores, the people said.

Prices for the other two storage variants of the iPhone XR have also dropped, according to Reuters' sources, who called the pricing a "short-term promotional offer."

With smartphone sales flattening in saturated markets like the U.S., Apple is said to have turned to India for new growth, but with "little success so far," claimed a report in December.

Just one in four Indians own a smartphone, providing Apple with an opportunity to sell iPhones to millions of new customers in the country.

However, with more than 75 percent of the smartphones sold in the country said to cost less than $250, India remains a very price-sensitive market, and a tough nut to crack for Apple.

According to research firm Canalys, the number of iPhones shipped in India fell 40 percent in 2018 compared with 2017, and Apple's market share in the country dropped to about one percent from about two percent.

Earlier this week, Apple also lowered the prices of several products in China, including the latest iPhones, iPads, and AirPods. The price cuts appeared to be due in part to a reduction in China's value-added tax (VAT), but any price cuts in China should be good news for Apple as it seeks to bolster sales there, too.

Last quarter, Apple issued a revenue warning due to "fewer iPhone upgrades" than it anticipated and "significantly greater" than expected economic weakness in the Greater China region. Apple had already discounted iPhone prices at third-party resellers in China to improve results.

Article Link: Apple Cuts iPhone XR Prices in India

 

[Justin Cymbal]

Hopefully this results in more iPhones being sold in India! I own 10 shares of Apple stock

 

[Remikm]

When Poland? We have prices at least 23% higher than in US! Taking in account 4x lower salaries it is robbery!

 

[44267547]

This is what Apple has to do. They made the price cut with the VAT in China, and now the XR being slashed in India. These phones are priced exorbitant in other countries where it’s simply not affordable, and Apple needs to come to the realization that changes need to be made.

 

[Nozuka]

This is what happens if we stop paying their ridiculous prices.

If only we were strong enough.

 

[Ramchi]

Still XR is expensive than Mate 20 Pro and Note 9 512 GB 8 GB RAM....

 

[aakshey]

Still XR is expensive than Mate 20 Pro and Note 9 512 GB 8 GB RAM....

No. It’s not.

The max retail price for XR now is INR 60k. That’s approx USD 850. And in reality you can get it as low as INR 54k which is approx USD 770. Note 9 is more expensive in India. As is Mate 20 Pro. Not by much. So mostly the same price class now. S10 is roughly in the same price class too.

512 Note 9 is maybe 90k to 100k or so. Same as XS 64 GB.

Mate 20 Pro I think is 60-70k after discount.

 

[Classie]

Apples produvt is “premium” and will have a hard time breaking into markets that is dominated by cheaper alternatives.

 

[69Mustang]

When Poland? We have prices at least 23% higher than in US! Taking in account 4x lower salaries it is robbery!

India has something that Apple wants. A potentially untapped market for expansion. Poland doesn't. That's not a knock against Poland. It's just a numbers game. Even if the majority of Indians can't afford an iPhone, the population is large enough where the small percentage of potential customers who can afford an iPhone make up a sufficiently attractive number to Apple.

 

[justperry]

So, about 91 Million phones are sold higher than $250, lets say that 75% are still below the iPhone prices, that means about 22 million people can afford an iPhone on a population of 1.365.000.000 people.

Just trying to figure out/guestimating numbers of potential buyers.

 

[genovelle]

So, about 91 Million phones are sold higher than $250, lets say that 75% are still below the iPhone prices, that means about 22 million people can afford an iPhone on a population of 1.365.000.000 people.

Just trying to figure out/guestimating numbers of potential buyers.

When most of their competitors are loosing money on their products, what is the incentive to complete in that market at their prices? If you sell to 100 percent of the market and loose $50 on each sale you just paid 65 Billion Dollars to give your product away. Not a good business decision at all.

 

[Achillias]

Still to expensive for a smartphone with a 828p screen lol. Anyway hopefully more customers will vote with their wallets. Apple greed of pricing their product out of most people reach is going to bite them. Tim Cook is everything where Steve Job didn't stand for.

 

[Ramchi]

No. It’s not.

The max retail price for XR now is INR 60k. That’s approx USD 850. And in reality you can get it as low as INR 54k which is approx USD 770. Note 9 is more expensive in India. As is Mate 20 Pro. Not by much. So mostly the same price class now. S10 is roughly in the same price class too.

512 Note 9 is maybe 90k to 100k or so. Same as XS 64 GB.

Mate 20 Pro I think is 60-70k after discount.

Just about three months back I bought Note 9 512 GB 8 GB RAM for ₹67000($957 approx) (with warranty off street) and Mate 20 Pro for ₹70,000 ($1000). Today they are sold
₹65000 (M20P) and ₹74,000(Note 9 512 GB) in Amazon without cashback. If you off street, Note 9 can bought at ₹65000. Both these mobiles for comparison having bigger screen, OLED, more storage, more RAM QHD resolution, expandable storage options etc...XR 128 and 256 GB is priced higher than these two mobiles

 

[Sasparilla]

Still to expensive for a smartphone with a 828p screen lol. Anyway hopefully more customers will vote with their wallets. Apple greed of pricing their product out of most people reach is going to bite them. Tim Cook is everything where Steve Job didn't stand for.

Um, its bigger than a 8 Plus, has longer battery life and has the latest CPU / camera (which is better than the 8 Plus) and its cheaper than the 8 Plus was when it was released. The screen is still a retina display at the same resolution density as the 8.

 

[Apple Master]

Still to expensive for a smartphone with a 828p screen lol. Anyway hopefully more customers will vote with their wallets. Apple greed of pricing their product out of most people reach is going to bite them. Tim Cook is everything where Steve Job didn't stand for.

Do you really need a 4K phone in your pocket? I mean really?
[doublepost=1554385322][/doublepost]

Just about three months back I bought Note 9 512 GB 8 GB RAM for ₹67000($957 approx) (with warranty off street) and Mate 20 Pro for ₹70,000 ($1000). Today they are sold
₹65000 (M20P) and ₹74,000(Note 9 512 GB) in Amazon without cashback. If you off street, Note 9 can bought at ₹65000. Both these mobiles for comparison having bigger screen, OLED, more storage, more RAM QHD resolution, expandable storage options etc...XR 128 and 256 GB is priced higher than these two mobiles

True but you still have to use shittay Android.

 

[pratikindia]

Just one in four Indians own a smartphone, providing Apple with an opportunity to sell iPhones to millions of new customers in the country.

I think it's misleading. It might be true in the past, but not now. All other mobile companies are making money except Apple. iPhones are expensive in India and you can buy 2 Note 9 512GB and some money left for the price of XS Max 512 GB.

 

[jonnyb098]

Still to expensive for a smartphone with a 828p screen lol. Anyway hopefully more customers will vote with their wallets. Apple greed of pricing their product out of most people reach is going to bite them. Tim Cook is everything where Steve Job didn't stand for.

The original iPhone introduced by Steve Jobs in 2007 cost as much as $599. In today’s money that’s $730. Which is basically an XR price tag. In comparison we are getting WAAAAAAAY more bang for the buck now.

Oh also In case you forgot which I’m sure you have. Apple lowered the price of the iPhone (under Steve Jobs) just months after launch due to backlash.

History lesson over. Everyone needs to stop with the “this wouldn’t have happened with Steve BS”. It’s getting old.

 

[69Mustang]

So, about 91 Million phones are sold higher than $250, lets say that 75% are still below the iPhone prices, that means about 22 million people can afford an iPhone on a population of 1.365.000.000 people.

Just trying to figure out/guestimating numbers of potential buyers.

Put those numbers into a business perspective. There are over 230 countries on the planet. Out of that number of countries, only 57 have a total population greater than your estimated 22 million Indians who can afford an iPhone. Put another way, the potential customer base for Apple in India is greater than the individual populations of over 170 countries. Granted, we're using your made up numbers for conversation purposes. But I don't think your numbers are that unrealistic. Potential in India, when judged against potential elsewhere... we can start to see why Apple seems to want it so badly.

 

[v0lume4]

This is what happens if we stop paying their ridiculous prices.

If only we were strong enough.

But if we don't update our iPhones every year, we can't get a false sense of importance by flashing it in public and in front of our friends! Many of us (most?) in this country (U.S.) put our identities in our devices and the things we own! Don't you understand?

/s

 

[Achillias]

The original iPhone introduced by Steve Jobs in 2007 cost as much as $599. In today’s money that’s $730. Which is basically an XR price tag. In comparison we are getting WAAAAAAAY more bang for the buck now.

Oh also In case you forgot which I’m sure you have. Apple lowered the price of the iPhone (under Steve Jobs) just months after launch due to backlash.

History lesson over. Everyone needs to stop with the “this wouldn’t have happened with Steve BS”. It’s getting old.

No in case you forgot which I'm sure you have. The XR is Apple budget line, while the iPhones during the Steve Job era where their top of the line production phones. In most Europe countries the XS Max starts at $1400 dollars. That's greed, simple as that. So instead of whining yourself, don't come up with this kind of crap. Steve Jobs didn't lost his common sense and had some principles which Cooks thrown over board.

 

[maerz001]

When Poland? We have prices at least 23% higher than in US! Taking in account 4x lower salaries it is robbery!

polands VAT rate is 23%. Don’t forget that US are net prices cos every state even cities have different VAT rates.

 

[44267547]

The XR is Apple budget line.

There isn’t anything budget about the XR. As matter fact, there’s nothing budget about _any_ iPhone Apple offers. I think what you mean to say is it’s Apples entry level iPhone with the new form factor. Also, If you break down the cost of the XR, it’s a $750 iPhone that actually competes directly against the XS in terms of features of what it offers. But to the point, the XR is vastly too expensive for countries like India even with Apple making a discount.

 

[Ramchi]

The original iPhone introduced by Steve Jobs in 2007 cost as much as $599. In today’s money that’s $730. Which is basically an XR price tag. In comparison we are getting WAAAAAAAY more bang for the buck now.

That was true only if every iteration of iPhone perceived like the first iPhone which was a great innovation compared what was available then from other makers. As technology ages, it's efficiency improves in terms rehashing internals, releases, optimising service with slow moderate improvements while negotiating terms with suppliers for multi-year contracts etc... eventually inflation and cost of tech evens out to certain degree. Only the exchange rates make the prices higher. With more volume selling and at higher margins, these inflationary adjustments may not be appropriate. Here we are not even talking about XS Max for such comparison and it is not domsometh unique that it is not available from other competitors, infact competitors offer better spec products cheaper than XR which is not even Apples flagship

 

[jonnyb098]

That was true only if every iteration of iPhone perceived like the first iPhone which was a great innovation compared what was available then from other makers. As technology ages, it's efficiency improves in terms rehashing internals, releases, optimising service with slow moderate improvements while negotiating terms with suppliers for multi-year contracts etc... eventually inflation and cost of tech evens out to certain degree. Only the exchange rates make the prices higher. With more volume selling and at higher margins, these inflationary adjustments may not be appropriate. Here we are not even talking about XS Max for such comparison and it is not domsometh unique that it is not available from other competitors, infact competitors offer better spec products cheaper than XR which is not even Apples flagship

Arguing on specs will never win an argument when it comes to Apple. People use Apple products for the ecosystem, style, ease of use etc. Apple didn't become the most valuable company on planet earth playing a spec war. Apple never had the best specs 30 years ago and they don't today. But they have a secret sauce of easy use, style and integration that customers CLEARLY LOVE.

From an economics perspective its a whole new ballgame. There is a LOT of economic uncertainty in the world right now and my guess is Apple is trying to keep ahead of it.
[doublepost=1554396900][/doublepost]

No in case you forgot which I'm sure you have. The XR is Apple budget line, while the iPhones during the Steve Job era where their top of the line production phones. In most Europe countries the XS Max starts at $1400 dollars. That's greed, simple as that. So instead of whining yourself, don't come up with this kind of crap. Steve Jobs didn't lost his common sense and had some principles which Cooks thrown over board.

Actually its an issue of economics and the entire economic landscape changing currently. Its becoming a well known conclusion that in countries with freebies such as healthcare, luxury items like cars, tech, etc will cost you more. Thats the balance. Here in the US we pay out our A$$ for things like healthcare, but get other things like gas and tech gadgets cheaper than they are in Europe.

 

[nikaru]

I think it's misleading. It might be true in the past, but not now. All other mobile companies are making money except Apple. iPhones are expensive in India and you can buy 2 Note 9 512GB and some money left for the price of XS Max 512 GB.

Selling phones does not mean they are making money. Most of these budget phones are sold at cost.