Apple has decided to stop selling iPhones via small stores in India that are not averaging more than 35 units in a month. This is because the company wants to regain its dominance as a Premium product manufacturer in the Indian market and push the entry prices of iPhones up by Rs.5,000. iPhone 6 and iPhone 6 Plus will also be discontinued soon and the new prices will take effect with iPhone 6s an iPhone 6s Plus.
The Cupertino giant had similarly increased the prices of iPhone SE last year, which was considered as the cheapest option among Indian buyers. The company does not want to be tagged under “cheap” devices in India and want their brand propogated only under Premium electronic device and products.
A spokesperson for Apple said:
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
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 company is pulling out sales promoters and fixtures from such outlets since it won’t be cost effective, the executives said. Instead, Apple wants to expand the number of Apple-exclusive stores — also called Apple Authorised Resellers — that are over 500 sqft, and wants each trade partner to have more than one such store.