Apple's New Strategy To Revive Back Sales - 15% Price Cut on iPhones

Apple has cut off the prices of its latest flagships by around 15% in just two months after their launch in India. After iPhone 5s, the cut down in prices of iPhone 6s and iPhone 6s Plus in order to boost flagging sales. Apple seems to be trimming prices in India, of its newest iPhone’s, to reach most of the customers. The prices at time of launch were pretty high and were totally out of the reach for Indian iPhone users.

Although India is a comparatively smaller market than China, Apple has understood the importance of the Indian market as being vital for smartphone sales. There is no correct strategy to grow in a market that has a huge divide between the affluent and the lower income group. The success of a strategy depends on the response of the majority of the target population and the manner in which the product appeals to them.

The new price tags by Apple makes it attractive for customers to purchase the devices as at the initial launch, users were reluctant to upgrade to the new model due to the price difference between iPhone 6 and iPhone 6s Plus. The price cuts are applicable across the variants – 16GB, 64GB, 128GB respectively. The price of iPhone 6s 16 GB model, which was launched at Rs. 62000, has fallen by 16% and now ranges between Rs 52000 – Rs 55000. This reduction also narrows the gap with the prices of iPhone 6 devices launched in 2014, making an upgrade more easy and attractive for the customers.

Apple had introduced the iPhone 6s and 6s Plus at Rs 62,000-Rs 92,000, about Rs 8,000-Rs 9,500 more than launch prices of iPhone 6 and 6 Plus. The models were Rs 14,000-Rs 16,000 costlier. Apple expects that this price cut may revive their demand for the October to December quarter, which is considered to be the strongest period for Apple due to its flagship launches in September. This is the first time when Apple has slashed prices of its product within the two months of launch.

While Apple may not have officially announced a price cut for the iPhone 6s and iPhone 6s Plus in India, several online retail portals are offering discounts on the Apple iPhone models.