Apple Cuts iPhone XR Prices in India

[d5aqoëp]

Selling iPhones for 50-60% more than US prices in India and in many other countries has landed Apple into a big dumpster. What is the use of their so called eco-system and various services like news, maps if they cannot sell enough devices? Moreover, most of their services are US/UK only so Indians don’t give a flying F about them.

 

[JPack]

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.

Those numbers are unfortunately, way off. The "super premium" market segment ($700+) in India is closer to 1-2 million units per year.

According to IDC, the premium segment ($500+) represented only 3% in 2018. Last year, 142 million smartphones were shipped. The super premium segment is controlled by Samsung and Apple. Combined, those two haven't shipped more than a couple million units in 2018.

By the time the super premium segment in India reaches the hypothetical 20 million units per year, it'll be a post-smartphone era.

 

[Ramchi]

Those numbers are unfortunately, way off. The "super premium" market segment ($700+) in India is closer to 1-2 million units per year.

According to IDC, the premium segment ($500+) represented only 3% in 2018. Last year, 142 million smartphones were shipped. The super premium segment is controlled by Samsung and Apple. Combined, those two haven't shipped more than a couple million units in 2018.

By the time the super premium segment in India reaches the hypothetical 20 million units per year, it'll be a post-smartphone era.

It is not because they don't have money to buy stupid smartphones, because they don't see value in it! Many of my associations are from well-off background(CEOs, Business people) and possible millionaires but seldom flaunt expensive mobiles. They just have the Android or some cheapest working iPhones for few selective stuffs like calls, messages, music, WhatsApp and Facebook. They don't care about the camera quality and endless debate on display quality etc....Indians mindset on buying expensive stuffs are typically linked with investment. If they don't see resale or ROI, they choose the most cheapest rout to manage the situation. Certainly, not due to lack of funds!

 

[JPack]

It is not because they don't have money to buy stupid smartphones, because they don't see value in it! Many of my associations are from well-off background(CEOs, Business people) and possible millionaires but seldom flaunt expensive mobiles. They just have the Android or some cheapest working iPhones for few selective stuffs like calls, messages, music, WhatsApp and Facebook. They don't care about the camera quality and endless debate on display quality etc....Indians mindset on buying expensive stuffs are typically linked with investment. If they don't see resale or ROI, they choose the most cheapest rout to manage the situation. Certainly, not due to lack of funds!

We can all speculate as to the reason. But regardless, Apple belongs to the super premium segment. Indian consumers aren't buying many super premium smartphones, regardless of brand. I've presented just the facts.

 

[antonrg]

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

To be frank, in France it’s ridiculously-priced too.

 

[vvs14]

The only way to keep these companies in check. Stop buying overpriced products. Does not matter how good they are. Overpriced is overpriced.

 

[69Mustang]

Those numbers are unfortunately, way off. The "super premium" market segment ($700+) in India is closer to 1-2 million units per year.

According to IDC, the premium segment ($500+) represented only 3% in 2018. Last year, 142 million smartphones were shipped. The super premium segment is controlled by Samsung and Apple. Combined, those two haven't shipped more than a couple million units in 2018.

By the time the super premium segment in India reaches the hypothetical 20 million units per year, it'll be a post-smartphone era.

Couple of points.
First. That's 2 different data sets. Neither of which correlate to each other. 20 million represents the number of people who, hypothetically, could afford an iPhone. It does not represent the premium phone segment sales that you're referencing.

Second. There is no implication in the original observation that there is potential for 20 million phones a year. It's simply an observation of 20 million potential buyers. Whether they buy 20 million phones over a period of 3, 5, 15, or 50 years... still 20 million potential buyers. I'm pretty sure Apple, like any business, is looking at India's potential over time, not just a year's snapshot.

I have to keep saying we're using made up numbers so anchoring an argument against those number is kinda pointless. You can argue underlying logic, which I think is sound.

 

[JPack]

Couple of points.
First. That's 2 different data sets. Neither of which correlate to each other. 20 million represents the number of people who, hypothetically, could afford an iPhone. It does not represent the premium phone segment sales that you're referencing.

Without referencing sales stats, how meaningful is it to discuss a group who can hypothetically afford an iPhone, but won't buy super premium smartphones? We might as well discuss vegetarians who could afford Kobe beef but won't make the purchase.

The original sales stats provided by @justperry were just incorrect. According to WSJ, "More than 75% of the smartphones sold in the country cost less than $250 and 95% cost less than $500." An optimistic estimate by GfK puts the number at 161 million smartphones sold in 2018. At best, this leaves 8 million Indians willing to buy a $500+ smartphone. The potential buyers of super premium ($700+) Apple iPhones is likely fewer than 4 million.

Second. There is no implication in the original observation that there is potential for 20 million phones a year. It's simply an observation of 20 million potential buyers. Whether they buy 20 million phones over a period of 3, 5, 15, or 50 years... still 20 million potential buyers. I'm pretty sure Apple, like any business, is looking at India's potential over time, not just a year's snapshot.

Finance is all about time frame. Without anchoring numbers based on a time frame, how can Wistron or Foxconn reasonably expect to calculate ROI? High technologies depreciate very quickly over time, as do factories, equipment, and buildings.

 

[Glassed Silver]

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

"Thank you for showing me room for improvement in the US margin game."
-Tim Cook, probably

Glassed Silver:mac

 

[DeepIn2U]

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

Apple should really unload ALL of the next production batch of 64/128GB iPhone SE's there for $0 carrier subsidy.
Next:
Work for LOCALIZED content for AppleTV+ movies and shows
Work for LOCALIZED iTunes U within their education system!!

Then maybe, just maybe Modi will stop trying to keep Apple at the front locked door of India.

 

[loybond]

I feel for you, but pricing is unfortunately not based on purchasing power. Usually, the larger the market, the cheaper things get.

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

 

[Ramchi]

We can all speculate as to the reason. But regardless, Apple belongs to the super premium segment. Indian consumers aren't buying many super premium smartphones, regardless of brand. I've presented just the facts.

Apple was a growing brand until iPhone X prices hit the market with steep prices. This almost the same story in every single markey outside of USA. One call super premium, luxury etc...but when smart consumers are presented with better choices, obviously the most valued one gets picked.

 

[mannyvel]

Using Dan Ariely's model, Apple at one point was able to reset people's pricing anchor. They can't do that anymore, which is bad news for iPhone down the road.

So they're starting to cut prices, which is always a bad idea when you go with value-based pricing. A price cut means a value cut. But does the price now reflect the fact that iPhones aren't delivering as much perceived value? Probably, yes.

 

[UltimaKilo]

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.

If Apple can crack India, a very finicky market that is growing rapidly, the sky is the limit.

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.

You’re absolutely right, these folks simply don’t understand economics. If you can’t afford Apple products, there are plenty of budget items out there, but none of them will last you as long as that from Apple. Cost over time has actually decreased, particularly with iPhones.

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.

It’s a premium product which consumers are willing to pay because the average lifespan of an iPhone is still over 4 years, which is tremendous value. Good things are expensive, good cars, good clothes, good food. There are budget options for those who can’t afford them. I would rather spend a $700-$1000 on a pair of cordovan leather shoes that will last me 80+ years over one that will cost me $80 and break within a year.

Premium products are not “greed” just because they’re out of the realm of what you’re willing to pay. There’s plenty of options for phones under €200 in Europe

 

[Achillias]

If Apple can crack India, a very finicky market that is growing rapidly, the sky is the limit.



You’re absolutely right, these folks simply don’t understand economics. If you can’t afford Apple products, there are plenty of budget items out there, but none of them will last you as long as that from Apple. Cost over time has actually decreased, particularly with iPhones.



It’s a premium product which consumers are willing to pay because the average lifespan of an iPhone is still over 4 years, which is tremendous value. Good things are expensive, good cars, good clothes, good food. There are budget options for those who can’t afford them. I would rather spend a $700-$1000 on a pair of cordovan leather shoes that will last me 80+ years over one that will cost me $80 and break within a year.

Premium products are not “greed” just because they’re out of the realm of what you’re willing to pay. There’s plenty of options for phones under €200 in Europe

It's not a premium product. It's what's you try to use in your head to justify it, for yourself. Nothing in the iPhone makes it worth 40% more than what other companies are asking for their phones. Actually almost every part in the iPhone is made by other manufacturers. It's just a brand sickness that peope like you are trying to use when they buy a product just for its name. It has nothing to do with quality. You want to be seen in curtain things, because you're a sheep.

 

[FFR]

It's not a premium product. It's what's you try to use in your head to justify it, for yourself. Nothing in the iPhone makes it worth 40% more than what other companies are asking for their phones. Actually almost every part in the iPhone is made by other manufacturers. It's just a brand sickness that peope like you are trying to use when they buy a product just for its name. It has nothing to do with quality. You want to be seen in curtain things, because you're a sheep.

Name one android phone with 3D based facial recognition, nvme based storage, 8 core npu, stainless steel frame, 120hz sensing touchscreen, best in class stereo speakers and edge to edge display without a big fat chin.

it actually has everything to do with quality and cutting edge components. That’s why the iPhone is a premium product and are well worth the price.

 

[Achillias]

Name one android phone with 3D based facial recognition, nvme based storage, 8 core npu, stainless steel frame, 120hz sensing touchscreen, best in class stereo speakers and edge to edge display without a big fat chin.

it actually has everything to do with quality and cutting edge components. That’s why the iPhone is a premium product and are well worth the price.

You're talking about design, if you want a exact iPhone clone you won't get it. Name me a iPhone with an underdisplay fingerprintscanner, 4K screen, more than 512 GB storage or without a notch. Just a bunch of things you're trying to use to justify it. It's not special, not better or worth more than any other high-end Android smartphone. It's all about iOS or Android. Hardware wise non of those devices are better than the other, especially not for such a price increase.

 

[FFR]

You're talking about design,

No I’m talking about components that make up a phone. Premium components that no other smartphone uses.

Your getting confused by components and design, its a bit embarrassing.

It's not special, not better or worth more than any other high-end Android smartphone. It's all about iOS or Android. Hardware wise non of those devices are better than the other, especially not for such a price increase.

Complete rubbish.

These are better components that are more expensive and no high end android phone actually has these premium components, only the iPhone.


3d facial recognition > 2d facial recognition
Nvme based storage > ufs 2.1 based storage
8 core npu > 4 core npu or none at all
120hz touch display> 60hz touch display
Stainless steel frame > aluminum frame
Curved display without big Chin > big bottom chin

if you want a exact iPhone clone you won't get it. Name me a iPhone with an underdisplay fingerprintscanner, 4K screen, more than 512 GB storage or without a notch. Just a bunch of things you're trying to use to justify it.

Yes I’m am listing high end components that the iPhone has that android does not, these high end components justify the costs.

Perhaps you should ask yourself why are you spending 1k on an android smartphone without these components, other than getting ripped off.

ufs storage is garbage compared to nvme. I would rather buy a phone with 64 gb of nvme storage vs 512gb of ufs 2.1, it’s a lesser quality component compared to nvme.

Enjoy whatever android device you are using, I hope you didn’t pay full price for it .

 

[44267547]

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

I’m curious to know what even Apple made off the iPhone SE to begin with. They were selling it for originally for $400, but it be interesting to know exactly what the dividend was for profit.

 

[UltimaKilo]

It's not a premium product. It's what's you try to use in your head to justify it, for yourself. Nothing in the iPhone makes it worth 40% more than what other companies are asking for their phones. Actually almost every part in the iPhone is made by other manufacturers. It's just a brand sickness that peope like you are trying to use when they buy a product just for its name. It has nothing to do with quality. You want to be seen in curtain things, because you're a sheep.

Then don’t purchase it. Nobody is forcing you to purchase a premium product. Like I said, there are plenty of usable €200 smartphones. Quite honestly, I don’t know why you’re even posting here? Do you walk into Coach stores or a Tesla dealer to complain about how you don’t see value in their product and won’t make a purchase?

For those of us that enjoy iPhones, I will happily pay $25 a month for the newest model.

 

[kshitijshah]

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

Can't be compared with an Android Phone - Samsung and Huawei have no software development costs and live off Google putting in the money. Apple invests and improves on iOS

 

[Achillias]

Then don’t purchase it. Nobody is forcing you to purchase a premium product. Like I said, there are plenty of usable €200 smartphones. Quite honestly, I don’t know why you’re even posting here? Do you walk into Coach stores or a Tesla dealer to complain about how you don’t see value in their product and won’t make a purchase?

For those of us that enjoy iPhones, I will happily pay $25 a month for the newest model.

Why are you even on a forum if you don't understand the purpose of it. If you're just a sheep who follows everything Apple does that's a shame on you. But don't tell people what they should or shouldn't do, your only entitled to speak for yourself and keep it that way.