The iPhone 6s hit shelves in India over the weekend – and on the shelves are where most of them stayed.
According to reports in that country, Apple saw lukewarm sales of the iPhone 6s and 6s Plus during launch there. With the cost on the entry level 16 GB iPhone 6 at $925, many analysts say Indian consumers may be waiting for prices to drop before upgrading.
The caution is understandable considering the average salary in India is under $300.
Running out of phones in 72 hours in India when it launched the iPhone 6 last year, Apple shipped more than three times as many 6s and 6s Plus phones for last weekend’s launch. Out of 165,000 units, Apple sold about 50,000 over the weekend, according to a report in Business Standard, India’s leading business news website.
The iPhone 6s costs 16 percent more than iPhone 6 when it first sold there last year.
While India is considered the third-largest market in the world for cell phone sales, according to the website phoneArena, many consumers pass up on Apple phones as a premium device and, instead, shop for more cost-effective smartphones.
Sales should pick up some over the next couple of weeks when, analyst predict, online retailers will drop prices.
Source: phoneArena and Business Standard
David Pierini is a former newspaper writer and long-time photographer. Considered a luddite by most of his friends, they did not believe him when he broke the news that he would be writing for a technology website. He is fascinated by human nature and would love to cultivate stories about the people driving the tech bus. Reach out to him at [email protected].
12 responses to “No rush in India to buy the iPhone 6s”
India will arguably be the hardest market to crack, harder than China because of combination of reasons.
People of India buying iPhone from outside country lik Hongkong n US Bcoz of high prices in India
Apple does not understand third world countries. I know, I live in one. Every day I see cheap Android devices gaining more and more ground against Apple. The reason is not necessarily the cost alone, it’s because those cheaper Android phones have highly regionalised Google software, so they are far better value for money. Google Maps are up to date. Google Translate includes local languages. Google Play offers more local content. Apple does not even get close to these levels of localisation. It’s a no brainer, why pay a fortune for something that will do nothing, even if it is better quality? Google 1, Apple 0.
Apple does not compete in that price segment. It’s like saying a Lamborghini doesn’t understand a market as well as a Ford Focus. Apple is posting bigger and bigger profits every quarter. Surely they must be doing things right. They can do it even better, but that doesn’t include lowering their price points. They sell all the iPhones they make at that price already. They won’t be able to keep up with the demand if the price was cheaper.
I agree that Apple is posting bigger profits year after year but that strategy will not work over the long term.
I understand the rationale to comparing Apple to a luxury/designer brands but no designer brands ships in millions of units like Apple does, you cannot ship that kind of volume at a premium for a product that is gradually not as distinctive anymore.
Smartphone sector is gradually getting better, Most android phones are getting better in the hardware and Android as a platform is more refined and feature laden as time goes by.
The allure of Apple is gradually waning as evidenced by a whole lot of factors and metrics out there presently. Unless Apple releases a radically innovative Iphone 7, i strongly feel that sales will decrease drastically.
You think that posting bigger profits year after year is a strategy that will not work over the long term?
Did you even read my post? The majority of it states that it’s not about cost, but about localisation. In your example, Lamborghini adapts their cars for left and right hand drive, just like Ford. Apple does not, unlike Google/Android. Sure Apple is making money, but all companies want to make even more. And expanding your base is by far the most cost efficient way – but then you need to really understand your base.
India is a country where only 15% of the people own computers. 20% of the people live below the poverty line and that poverty line is not the same as the U.S. Sure, the standard of living is decent in Bangalore, Hyderabad and other but that is not the norm.
You forgot Mumbai, Delhi, Pune and a whole host of tier two cities bursting with tens of millions who can comfortably afford the US Prices of iPhones. I too would buy the iPhone at the US price without a thought. Millions of other Indians would too.
1 It is however almost 50% higher
2 Apple service centers are a nightmare.
3 No apple pay
4 local content is almost non existent.
No SANE person would like to buy it without deliberations & reservations, poor or ‘rich’.
While it is true that millions of Indians are poor, that is not a reason at all. Apple just hasn’t bothered to penetrate the market. If they had been even half as serious, they could have finished off the premium segment of Android in India by now.
I’m sure they will eventually. But the price difference, is that apple’s fault or a result of india’s rules on imported stuff. India probably levies custom fees on Apple; Apple just passed them onto the customers.
11-12% are the duties. The differential rate is 49% on the iPhone 6S Plus 128GB.
What about the remaining 38%?
Most prominent reason is the mark up of 46% over the US price.
Don’t be surprised if Indians fuel the demand of the iPhone in the U.S. especially since the after sales service for Indian bought phones is godawful anyway (no Apple store, the resellers give you a raw deal). You’d rather save $300-400 on the price tag & use it for repairing the phones should something go wrong.