Discounting the iPhone by Three Fiddy is not the smartest Apple move and won’t cut ice with India

Being the world’s second-largest market for smartphones thanks to its population, India remains a country with a wide range of income levels. I need to repeat what we’ve outlined in our original article: the average monthly salary in India varies from 8,000 rupees ($95.55) to 143,000 rupees ($1,708.02).A $70 discount on an iPhone Pro might seem plenty, almost a whole monthly salary, if your monthly salary is under $100. However, how many months would you have to save to be able to afford the iPhone Pro in the first place?

Not to mention the fact that the iPhone 15 Pro, which is priced at $990 in the US of A, costs as much as $1,550 in India.

Why the price difference?

Apple products, including the iPhone, are often more expensive outside the United States due to several factors. One primary reason is the added cost of import duties and taxes in various countries. Governments impose these charges to protect local businesses and generate revenue, significantly increasing the retail price of Apple devices. A major bummer.

In addition, currency exchange rates can be different at different times, often making US-based products more costly when converted into local currencies. Another factor is the additional logistics and distribution expenses.

Shipping products internationally, maintaining regional stores, and supporting local marketing and customer service all contribute to higher prices. Furthermore, Apple tends to maintain a premium pricing strategy globally, leveraging its brand reputation and product desirability to keep prices high, irrespective of the market.

Keeping prices high might not sound very logical to those of us who are not enlightened to the economical mysteries of our time (more like “schemes”), but Apple has been doing just fine with that exact strategy.I’ve seen people buy Apple products after months of saving, precisely because Apple products are expensive. They pay hard-earned top-dollar for the iPhone (or the iPad) not because it’s a powerful, secure and well-built tool that gets the job done, but because they see the expensive thing as a way to boost their social status.

Don’t blame the player, blame the game… right?

Will Apple be able to dominate in India?

No.

That was fast, right?

Well, not in the near future. If we’re to take a look at things closely – yes, India represents a significant potential market for Apple. It’s large, the middle class is growing, people will naturally strive for finer things and finer smartphones as the months and years pass.

However, Apple’s market share in India has been relatively small compared to Android devices. Several factors contribute to this trend. First, India’s market is highly price-sensitive, and many consumers prioritize affordability. Android manufacturers like Xiaomi, Samsung, and Realme (let’s not forget Nothing and Oppo!) offer a wide range of devices at lower price points. This is making them more accessible to the average Indian consumer.

Additionally, these Android phones often provide features tailored to the local market, such as dual SIM capabilities and localized apps, which appeal to Indian users.

On the other hand, this scenario presents an opportunity for Apple to strategize and innovate to capture a larger share of the Indian market. The company has already taken steps to manufacture some of its products locally, which helps reduce import duties and costs. This move has allowed Apple to offer some devices at slightly lower prices, as we’ve seen happen just now, making them more competitive.This doesn’t take in account that trivial, insignificant, microscopic thing called politics. See, India is next door to China. China is where many of today’s amazing flagships are being made. China and India have been through typical neighbor hardships (some of which are still ongoing) throughout the years, but it seems like they’re going to overcome them.

And you know what that means? It means that once trade relations between China and India deepen even further, Android smartphones from the Mainland will overwhelm the Indian market. There’ll be little to no room left for the iPhone, which will see its popularity drop proportionally the more India gets closer to China. The government over there has actively opposed the iPhone with various bans and laws.

Enough with the politics. That’s just one of many sides to the issue.

It’s not all about politics

Even if we don’t take into account the fact that India and China are probably going to experience a trading boom, there’s more to the fact that Apple won’t have an easy time in India.

That’s because of Apple’s ecosystem. Hey, it’s great having a phone, a computer, a tablet, a watch, a pair of earbuds – all with the same fruit logo on them. This closed ecosystem provides stability, consistency and – at the end of the day, peace of mind.

However, buying all those things is not fun. It doesn’t matter if you’re based in a price-sensitive market, or not: Apple products are damaging wallets all over the world.

That’s why I don’t think that discounting a $1,550 product (that’s already way too expensive and costs just $990 in the US) by $70 will make any difference at all. What’s more, I think this is an unnecessary move: you’re not making your product any more affordable. I think it could be read as a pure act of hollowed-out virtue signaling. Let me say it that way: if I see a $200 discount on a Ferrari, it’s going to make me angry.