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Earnings of Indian retailers with sales of the iPhone X is not great

Apple has reduced margins for retailers by nearly 30%, which caused the dissatisfaction of Indian retailers. This publication reports Cult of Mac.

The largest retail network of India has stopped taking orders for the iPhone X because the earnings from it have dropped significantly.

“Apple has reduced the margin from sales of iPhone X from 6.5% to 4.5% for large retailers. In addition, if the customer pays the purchase with the card, the banking Commission is 1.5-2%,” says Subhash Chandra, managing Director, Sangeetha Mobiles, which owns about 400 shops across India.

According to entrepreneurs, the margin on the sale of Apple devices is lowest among all smartphone manufacturers. For example, brands such as Xiaomi and Samsung offer retailers from 12% to 15% of the value of the gadget, Oppo and Vivo rates even higher. Give the company a greater percentage of retailers in order to strengthen its market share. Apple is interested in the Asian market, but does not intend to make concessions.

Retailers complain that to cover overhead, they need a margin of about 10%. Contracts with the Corporation from Cupertino is not beneficial to retailers, because then they will have to work for free. In turn, Apple representatives claim that due to the expensive components of the iPhone X revenue from the sale of a smartphone are not great.

It is unknown whether there has been a decrease in the percentage of sales for sellers from other countries. However, the delivery of the flagship of Apple in this country was lower than in South Korea or Thailand.

In India, iPhone X on 64 GB costs 89 000 rupees (about 80 600 rubles), but a version with 256 GB built-in storage will cost 102 000 rupees (about 92 400 rubles). In the Russian retail networks, the flagship Apple phone you can buy for 79 and 91 990 990 rubles, respectively. One rupee is worth about 91 cents.

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