The Economic Times reports that in response to slow sales of the iPhone in India, Apple will increase iPhone prices and cancel sales of the iPhone 6 and iPhone 6 Plus in the country which had been used as a cheap entry point for onboarding customers into Apple services. This will leave the iPhone 6S and iPhone 6S Plus as the bottom rung and 5,000 rupees ($72) will be added to their prices.
The logic: “[Apple] wants to reinforce the brand’s ‘premiumness’ in the Indian market and increase average selling prices,” said one industry executive speaking to The Economic Times.
Doubling down on this, The Economic Times reports Apple will pull iPhones from any retailers smaller than 350-400 square feet in size. Apple will then focus on a fewer number of larger stores and push them to be Apple-exclusive.
All of which is the complete opposite of Apple’s strategy to increase iPhone sales in another 1BN+ country: China. Here Apple is slashing prices (often multiple times) and inviting more partners to resell iPhones.
And running two opposing strategies simultaneously hints at one obvious concern: Apple doesn’t know how to turn around stalling iPhone sales. Tip: cutting entry-level models and increasing prices won’t help.
With Apple’s next-generation iPhones also hampered by court-battles which could delay the adoption of 5G until 2021, it’s a testing time for the previously imperious company. Yes, we all know Apple has a truly game-changing iPhone starting to take shape, but the immediate road ahead looks rocky…
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