Apple has decided to reduce the price of iPhone 6s and iPhone 6s Plus amidst decline in sales.
Apple Inc. has almost reduced the price of iPhone 5s in India to nearly a half. So now, the company plans to deploy a similar strategy for its recent flagship smartphone – iPhone 6s and iPhone 6s Plus – in the region. The reason why the tech behemoth has decided to slash the prices is that the sales are quite staggering in the region.
As per a local publication house in India, namely ‘Times of India’, during the fourth quarter, there has been a significant decline in demand although it was retailing quite well during the Diwali season. On an average, the difference in terms of pricing of all the Apple iPhone 6s and iPhone 6s Plus from the day they were launched to date is almost 15%. The company had extremely strong sales in October; thus, it must be quite disappointing now since it had a high expectation from the emerging market.
India is considered one of the largest smartphone markets all over the world where the company shipped almost 32,000 units of its smartphones. According to the data gathered by the local analytical firms, the import figures have now dropped significantly by 62% in November. China, in terms of its economic growth, is far more important for Apple in comparison to India but India has extremely ‘fast growing’ grip on the smartphone fraternity that is of immense importance for the organization.
In India, tech giants, such as Facebook and Google, are trying quite hard to bring internet access to the masses in the region. Thus, the demand for smartphones and Internet compatible phones is likely to rise there. There are high import taxes because of which the locals have to pay hefty prices that have contributed to the decline in smartphone sales. Samsung was successful in reducing the cost since it established its factories in the region to excuse itself from such hefty taxes.
It is now assumed that Apple will follow the lead of Samsung and establish its factories in the region. In September, the Chief Executive Officer of Apple, Tim Cook, met the Indian Prime Minister, Narendra Modi, to discuss the possibilities of establishing a factory and manufacturing products locally. Foxconn, known for manufacturing components for the iPhone, is likely to establish almost 10 to 20 factories in India. It is still not clear whether these factories will cater to iPhone components or not but the boost in economy is inevitable.
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