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Apple Plans Revamped India Strategy With Official Stores, Year-Long iPhone Deals, and Improved Apps
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http://www.istoreindia.com/apple-iphone/10.html
- iPhone X 64GB Space Grey Rs 89,000.00*
- iPhone X 64GB Silver Rs 89,000.00*
- *MRP inclusive all taxes.
It seems you're no stranger to providing inflated retail prices. Thankfully, anyone can fact check you.
Actually, the MRP has now increased to 95k. But online retailers sell for less. So it doesn’t matter that much. PayTM sells for 85ish after cash back.
And if you’re able to get a GST refund for a company purchase the price drops by another 10%. Bringing it close to US pricing.
And even if it were 40% more expensive, so what? That’s the case in many countries. But they still buy iPhones without getting these so called superior services. Nobody is expecting India to buy as much as USA or even China. But shouldn’t they strive for at least 25% of China? In reality it is much much less than that.
And if you’re able to get a GST refund for a company purchase the price drops by another 10%. Bringing it close to US pricing.
And even if it were 40% more expensive, so what? That’s the case in many countries. But they still buy iPhones without getting these so called superior services. Nobody is expecting India to buy as much as USA or even China. But shouldn’t they strive for at least 25% of China? In reality it is much much less than that.
Do you even know when do you get a GST refund?
You need some better data to understand this all, let me help you with that.
Sales
iPhone sales in China Q3 2017 - 11 Mn
iPhone sales in India Q3 2017 - 900K
Difference: 13.75x i.e iPhone was sold 13.75 times more in China the same quarter than India.
Economy
Now let's look at both countries' financial aspects:
GDP per capita China - $8123
GDP per capita India - $1709
Difference 4.75x i.e. China's GDP per capita at that time was 4.75x more than that of India's
So, if an average Indian is 4.75 times poorer than an average Chinese, why iPhone sales are 13.75 times high in China?
With those figures, either India's sales should be 2.7 Mn (900K * 3) devices sold or Chinese sales should be 3.66 Mn (11Mn/3).
Possible factors:
iPhone X 64GB variant retailed in China at: $1266
iPhone X 64GB variant retailed in India at: $1368
Source: https://qz.com/1106603/where-the-iphone-x-is-cheapest-and-most-expensive-in-dollars-pounds-and-yuan/
Ecosystem offered by Apple in China and India:
Apple Pay (Source: https://www.apple.com/ios/feature-availability/#siri-restaurant-information)
China: Yes
India: No
Apple Maps w/ Navigation (Source: https://www.apple.com/ios/feature-availability/#maps-turn-by-turn-navigation)
China: Yes
India: No
Apple Maps (Nearby suggestion)
China: Yes
India: No
Siri Support
China: Supports Local languages
India: Doesn't even understand English properly
One of the most important term or reason, per my understanding, is consumer behaviour.
Indian consumers likes to own a product by purchasing it at full price. Possible indicator of that behaviour:
Public Debt of China: ¥25,549 ($3745 USD)
(Source: https://www.nationaldebtclocks.org/debtclock/china)
Public Debt of India: ₹52,869 ($767 USD)
(Source: https://www.nationaldebtclocks.org/debtclock/india)
An average Chinese citizen has 4.88 times more debt than an average Indian citizen.
I quoted my local Apple Reseller's (Inspire) cost. Each state has different GST rates, so learn before you claim something and have no idea about it.
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It is hard to discuss with Indians. Few make any sense or so it seems from this thread. They just want to show their unreasonable patriotism at all costs.
LOL
This is the dumbest thing to say to prove yourself any worth in life.
Do you know how many Indians pay tax? 1% and that's not because Indians don't have money. Let me guess, you have no business knowledge on how Indians evade TAX and that's one of the reason why PM Modi came up with the ban of 500 and 1000 Rupees notes.
India is a cash centric country. I know milkman shop having Mercedes. The guy who sells Dosa on road has multiple properties. For your reference I will even link you (https://economictimes.indiatimes.co...ney-scheme-in-mumbai/articleshow/54618396.cms).
There are many people in India who have black money. Indian Economy can't be compared with China or US. It's not even the real data because Indians don't pay TAX.
Second of all, Anirudh saying price of Apple iPhone X is Rs.92,000 is not a lie. Without your research you just claimed he's a liar because less of your knowledge. I don't know if you are from India but if you go to normal shops they will sell you at Rs.87,000 currently and Rs.92,000 from authorised seller of Apple. You can call and check with them. Anyone will sell between Rs.87,000 - Rs.92,000. The authorised seller price has to be considered and not the least price.
Thus guy Jpack is not even from India. He's right from his side because he's going by data. But you think we have Mercedes, Audi, BMW, Louis Vuitton, Hermes, Armani etc are in India from last many years because of the data?
Indians middle class and rich class have lot of money. They just don't show it on the paper.
BTW, where are you from?
Edit: Read this, you will get some knowledge and may be you will understand that not everything comes down to price lol (https://www.thebetterindia.com/125778/indians-pay-income-tax-reasons/)
A bunch of non sense Jpack.
GST is a flat rate of 12% in India on smartphones.
And if you have a GST number and show the iPhone as a business expense, you can claim input credit for the GST paid. I don’t think you’re even in business. Probably in school or in a job and that’s why you have no idea how GST works.
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Lol.
The total Mercedes sold in India is 15k in a year. That’s it.
This includes people with black/White money.
And it’s a rounding error in global sales.
All these companies are also in many African and relatively poor EU companies, that doesn’t mean much.
And you should know all these companies are currently loss making in India. Lol.
Talk about a perfect example of cognitive dissonance.
Indian middle class are rich according to you. They just don’t buy anything of value. Certainly not iPhone or premium smartphones. Nothing to show for it. LOL.
15k Mercedes-Benz vehicles sold in India last year. Less than 10k BMW and Audi vehicles sold.
I guess the rich Indians are buying rickshaws with all the money!
So obviously both of you have no knowledge of black money that is so evident in India. Well, keep going by the numbers. That's what you are taught in school, right? lol
We actually look at real numbers. The same way corporations do. And the World Bank. And GDP. Not fictional numbers you call black money.
If you show your GST number you don't get refund, it just gets deducted from bill from the reseller and then you have to pay it when you file your GST returns.
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You can easily use it as input credit if it’s a business expense.
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Again, you are showing no proof, just words. You are talking with someone who files GST returns.
You can't convince me with just words. What is your source of information?
https://cleartax.in/s/what-is-input-credit-and-how-to-claim-it
This is how GST works:
Let us say you’re a service provider.
You billed your customers INR 1 L plus GST.
So GST collected is INR 18k.
Let us say your expenses (which also attracted GST if say) were 50k.
GST on that might have been 9k. Perhaps. Varies.
Now if you’ve already paid 9k to your suppliers, you are need to pay an additional 9k and not the full 18k. For a total of 18k.
But you would anyway collect 18k from your clients. Only 9k of which is due to ITD because you’ve already paid 9k on purchases of a total due of 18k. So out of 18k you collected from clients, 9k is saved or you can say, in a way.
This is how GST works:
Let us say you’re a service provider.
You billed your customers INR 1 L plus GST.
So GST collected is INR 18k.
Let us say your expenses (which also attracted GST if say) were 50k.
GST on that might have been 9k. Perhaps. Varies.
Now if you’ve already paid 9k to your suppliers, you are need to pay an additional 9k and not the full 18k. For a total of 18k.
But you would anyway collect 18k from your clients. Only 9k of which is due to ITD because you’ve already paid 9k on purchases of a total due of 18k. So out of 18k you collected from clients, 9k is saved or you can say, in a way.
So basically you have to sell that iPhone. Are you getting this now?
You can take GST benefit only for those items that you are planning to sell and those that are raw materials and you are going to make something out of them and then sell that item.
That 9K is CGST and the one that varies is SGST that I told you earlier. You pay that 9K initially because it is CGST which is static.
Nope. You can take input credit if it’s a business expense. Regardless of whether you sell it or not. Get a better CA like ClearTax.
No. You can't.
You will have to pay it eventually when you file your GST return and when you sell it, you will get a GST refund.
You can do what you suggested if you want ITOs at your office.
A big waste of time, Apple should just leave. Maybe come back 8-10 years later if the Indian market/infrastructure has improved any.
Seriously, I think so too. Apple needs to leave. Their current "plan" simply does not work for India. The "plan" might work for a country like China. But using the same strategy (that they use in China) will not work in India.
It will take Apple some time, maybe a couple years, to come up with and execute a plan that will actually work well in India. It's not just about marketing. As discussed in this thread already, it's also about Apple having to deal with the realities of the Indian cash economy, and also having accurate research info on which Indian consumers are the ideal targets willing to pay for a $1000 phone.
Agree. Indians who can afford iPhones come to the US to buy them anyway or have family here buy them. Not being there won’t make a dent in Appke’s Balance sheet. Kind of like Brazil right now…
Am I missing something?
The premium smartphone market in India is 600 dollars and up.
Apple with how little phones they are selling command a 15% share of the premium handsets market in India.
Why is that bad?
The number one and number two are at 32% and 30%.
The premium smartphone market in India is 600 dollars and up.
Apple with how little phones they are selling command a 15% share of the premium handsets market in India.
Why is that bad?
The number one and number two are at 32% and 30%.
The $999 Note9 (128GB) costs ₹67,900.
The $999 iPhone X (64GB) costs ₹95,390.
The $1249 Note9 (512GB) costs ₹84,900.
The $1149 iPhone X (256GB) costs ₹108,930.
Still the governments fault ?
The $999 iPhone X (64GB) costs ₹95,390.
The $1249 Note9 (512GB) costs ₹84,900.
The $1149 iPhone X (256GB) costs ₹108,930.
Still the governments fault ?
Samsung subsidizes their phones in India. And they also make many phones in India.
Apple doesn't care about charity. Apple USA decides the pricing that's worthwhile for them, if poorer countries can't afford said prices, you can't blame Apple. They are indifferent towards having sales all over the world. They only care about unit economics.
Samsung's mobile division could probably care less what their profit in India is today. They are ready to invest.
Every company's strategy is different.
For now we know Apple has a far higher net PAT despite dealing in very few industries and products unlike Samsung which is one of the world's largest conglomerates and yet their overall PAT is much lower.
Sounds like Tim Cook takes advice from you.
The point many have been trying to make that while Tim Cook keeps saying India is a priority their actions tell a different story. This "couldn't care a damn" attitude might cost Apple future growth in India. Companies invest for the long term which Apple isn't doing. Tim Cook himself said - Apple is investing for the next 1000 years.