Apple, the most expensive brand, which already costs an arm and a leg is going to increase its price of the most favored product i.e. iPhone5S, iPhone6, and iPhone 6S in India. The decision taken by the company has caused a stir among the customers who were going to buy the iPhone in the future creating tension among them.
The main reason why Apple has increased the price of their product is because of the deferred demand of its recently launched iPhone SE. The company had expected earlier that the sales will shoot up, but the directions were deferring the demand of the product. The 16GB phone which was unveiled in March 2016 with a price tag of Rs. 39,000 has created a loss for the company for which they are going to compensate with its currently available model.
According to a source,” It was felt that iPhone SE, which was criticized for having a ‘high price tag,’ will not be able to see much traction if prices of bigger-sized iPhone6 and 6S devices are not corrected. So, the decision was taken to revise the price upwards.” The price of iPhone6 and 6S is expected to hike by 29%. And the iPhone5S, which was a top-selling product for few months because of its low price, i.e, 18K is also going to shoot by 22%. The iPhone6 will cost now at Rs. 40,000 which was initially available at Rs. 31,000 and 6S will be accessible at Rs. 48,000 as against of Rs. 40,500. And the iPhone5S will now cost at Rs. 22,000. The company has also come out with corporate offers and EMI to drive sales.
“The stock of iPhone SE was in any case kept at a low level. A strategy is being worked out to pitch the device more effectively”, a source said.
“Another problem for SE in India is the small screen size. Indians are increasingly buying larger screen-sized phones, even at the lower-end of the market. A lot of data is consumed on smart devices, and smaller ones do not find much favor with buyers,” a source said. The small size of the phone is a prominent issue as Indian-users are in a habit to use the large screen size phone.
Now let us see that the policy of increasing the price of its models proves to be a successful move by Apple or the results just get quashed.