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Most reports seem to be focussing on selling price for iPhones in India. More than price, manufacturing iPhones in India lets Apple have Apple Stores, and sell
by calvinbhai 10y ago
Most reports seem to be focussing on selling price for iPhones in India. More than price, manufacturing iPhones in India lets Apple have Apple Stores, and sell to customer directly.
Currently, Indian customer has no access to Apple Store level of shopping experience. Yet to come across Apple Reseller Stores who are at least 10% as good as the Apple Stores.
Benefits to Apple:
1) Keeps full profits. No margin wasted for reseller
2) Offers world class Apple Store experience / customer service
3) Ability to offer refurbished products (currently they cannot)
4) Educating customers in the regional language about iPhones (will make a huge difference)
5) No Price Anchoring effect (resellers will cross sell android phones at 1/4th the price with higher margins / incentives)