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> Bit of a conflict there. They’re not going to lower prices elsewhere just to expand in India. The thing is they can - if they manufacture the phones in India
by webmobdev 8y ago
> Bit of a conflict there. They’re not going to lower prices elsewhere just to expand in India.
The thing is they can - if they manufacture the phones in India.
When they import the phones from China to India, they have to pay duty on it, which is ultimately passed on to the customer, thus making the iPhone costlier in India. So even if the manufacturing cost ends up the same as in China, the made in India iPhone can be priced cheaper.
The problem with Apple's current approach is that they want a SINGLE MINIMUM PRICE POINT for all their devices, and the CEILING for that minimum price point is fixed based on the US and European market (the developed countries).
Note that for a developing country like India or China, even a $750 (for example) iPhone puts it in the very high-segment "luxury" range.
So Apple can still preserve its perception of highly desirable luxury / fashion / tech company, even with a lower price, in developing countries.
Ofcourse, their fear is that these cheaper phones may then be imported to the developed countries and poach sales there.
That is the dilemma that they face and need to crack.