The 4-inch iPhone SE may be billed as Apple’s most affordable iPhone yet, but it won’t be nearly so reasonably-priced when it launches in India — one of Apple’s biggest potential markets — this Friday.
Compared with the $399 price tag it carries in the U.S. (which translates to around $430 after taxes in most states), the iPhone SE will set customers in India back 39,000 rupees ($586). For those keeping track at home, that’s a 36 percent premium compared with the U.S. price.
It’s not ideal for Apple, which has targeted the iPhone SE at developing markets. A recent report from Consumer Intelligence Research Partners predicted that Apple will sell just 4 million to 6 million units of the new iPhone SE in the United States — with the majority of its sales coming from overseas territories.
Apple currently has less than 2 percent of the Indian smartphone market, where 4 out of every 5 phones sold cost less than $150, branded smartphones can cost as little as $35, and the average smartphone sells for $200. A 16-gigabyte iPhone 6 can cost as little as 35,000 rupees on various e-commerce websites.
A recent teardown of the iPhone SE suggests that it costs around $160 to build and assemble, with Apple managing to cut down on costs by using the same four-inch screen found on the 2013-era iPhone 5s.
Apple’s plan to grow its market in India recently hit a hurdle due to protests (from, among others, Samsung) concerning an initiative to import used iPhones into the country for sale.
Nonetheless, the company remains committed to growing its business in India — with plans to open a Fifth Avenue-style flagship Apple Store there in the near future. During a 2015 meeting with India’s prime minister, Tim Cook noted that India holds a, “very special place in the heart of every Apple employee” because it was the destination Steve Jobs visited as a young man searching for inspiration.
Source: WSJ
