Apple Wants to Remove iPhone Distribution Chain in India
Apple is all set to launch official Apple stores and the online Apple store in India. With the company steadily moving forward towards that goal, they intend to remove the current distribution layer in the market.
Sources close to iGyaan from within Apple have clarified that service and sale of all iPhones may fall back under Apple’s own command as the general approach towards service has been poor in India when compared to global standards of service.
Traditional distribution model which was adopted by importers of iPhone in India, Ingram and Reddington, end up decreasing the sale prices of the iPhone considerable within one year, which is not the case with Apple’s global sales model. Apple wants to ensure that the price protection for the customer who buys the phone at launch is equal for the customer who buys the phone six months from launch.
The Recent launch of the iPhone SE is the biggest example of Price problems faced by the company. The iPhone SE was launched at Rs. 39000 while the iPhone 6s was available at the time for around Rs. 40000 down about Rs. 16000 from initial launch price. Apple then steadily moved to regulate the price of the iPhone in India, even though denying it, to ensure the sale of their new mid-tier iPhone SE.
Apple sees India as a large opportunity for sales, only after the US and China, and expects to be able to provide equivalent pricing as the US markets and also ensure that price does not fall by taking reins of the sales and service model in India. In a scenario like that the iPhone SE, which costs $ 399 in the US would cost Rs. 26500 in India and not Rs. 39000.