tech2 News StaffMar 14, 2019 12:39:38 IST
Apple’s former iPhone models, iPhone 6 and iPhone 6 Plus might soon stop selling in India.
The report citing senior industry officials said that Apple wants to reinforce the brand’s ‘premiumness’ in the Indian market. Apple is said to increase the entry price of iPhones by more than Rs 5,000.
“It wants to reinforce the brand’s ‘premiumness’ in the Indian market and increase average selling prices. Apple has no plans to immediately drop prices of iPhone 6s, which is locally manufactured,” the report quoting the executive said.
As per the report, Apple distributors have already informed ‘neighbourhood stores’ that the company wants to exit outlets that are less than 350-400 square feet and those that sell less than 35 phones per month. Given that ‘sales promoters’ and ‘fixtures’ won’t be cost effective in these outlets, Apple instead is planning to expand the number of exclusive stores (Authorised Resellers) that are more than 500 square feet, the report cited.
The company is ending its distribution partnership with RP Tech for iPhones next month. Apple is said to have already terminated partnerships with Brightstar and HCL Infosystems leaving Ingram Micro and Redington the only distributors for the brand in India.
“Apple wants fewer trade partners in India, and to deepen the relationship with them. This is to improve the selling experience and ensure compliance of the store as per its terms. The larger Apple Premium Reseller stores, too, are a big focus area,” an executive told the publication.
While Apple is supposedly planning to increase the entry price of its iPhones in the Indian market it remains to be seen how it will affect the company’s revenue given that iPhone sales in India are said to be on a ‘downward trajectory.’ One of the primary reasons for the company’s struggle in India is that its iPhones cost twice as much as many alternatives in the Indian market.
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