Apple appears to be changing its India strategy again, according to recent reports. The company may withdraw some of the older models it had started selling in the country at reduced prices. The idea the company now wants to work with is that the latest iPhone models being assembled in India will be sold at their best prices. The older phones, particularly the iPhone SE, 6, 6 Plus and 6s Plus will all be phased out. Apple has already withdrawn models like the iPhone X from the US market also leaving the field for the later models like the iPhone X, XS Max and XR.
The latest decision may mean the cheapest iPhone in the Indian market will now go up by nearly Rs 8,000.
This decision was reportedly made by the company after it reviewed its performance for the last financial year ending March 2019. Maybe, Apple has now realized that the Indian market has the elasticity to absorb its higher-end models too provided they are priced right. The earlier constraint of having to pay high import duties and therefore pricing the phones higher is no longer the case. By making these phones in India the retails prices in the hands of the buyers might not be disproportionately higher that that at which these models are sold elsewhere.
So, the new strategy will not be low price and high volumes. It will be reasonable prices and reasonable volumes. In terms of percentage, even a small percentage of the market in the country can translate into substantial numbers in absolute terms.
One model that is being mentioned is the iPhone 7, which Apple is currently getting made in India through Wistron and exporting to Europe. This phone may be sold in the domestic market as well.