As part of a strategy to increase market share, Apple has reduced the prices of their products in India. The device “Apple” brand is cheaper in online store and authorized Resellers.
This week in India went on sale the first iPhone SE collected on the production capacities of partner of Apple — the company Wistron. The device is sold labeled “Designed by Apple in California. Assembled in India.”
The start of local production enabled Apple to reduce India’s cost of production. The authorities have provided the company with tax benefits in the amount of 7.5%. Now, the cost of iPhone 7 in India is 56 200 rupees (51 200 rubles) instead of 60 000 rupees (54 700 rubles). iPhone SE fell from 27 200 (24 800 rubles) up to 26 000 rupees (23 700 rubles). Lower prices also touched upon iPad, Apple Watch, and Mac.
Localization of production of the iPhone will allow Apple to not only get tax benefits, but also to open a network of branded retail stores in India that will help to strengthen its brand in a country where, despite the boom in sales of smart phones, the share of the Corporation low.
Apple controls just 3% of the smartphone market in India mainly because more than 75% sold here device cost less than $250. Due to this, the company’s competitors, including Samsung, offering models in elementary and middle price ranges have a distinct advantage. Almost all sold in India phones — 95% — have a price below $500.
According to analysts, next year the mobile market of India will surpass the number of products sold in the U.S. and will take 2nd place after the largest market in the world – China. Sales in China for several years supported the expansion of the Apple, but now the growth in this market slowing down.
