As it continues to refocus its strategy in India, Apple has reportedly stopped selling the iPhone SE, iPhone 6, iPhone 6 Plus, and iPhone 6s Plus in the country. This comes as Apple is reportedly shifting its plan in the country to focus on newer and more expensive iPhones.
According to The Economic Times, Apple is now focusing on increasing its revenue from India, as opposed to increasing iPhone volume. Apple’s distributors in India have reportedly informed retailers that the new “entry level” iPhone will be the iPhone 6s. This move will increase the price of the base iPhone by Rs 8,000 in India (roughly $116).
Notably, Apple was assembling the iPhone SE in India, but that capacity will now be shifted to newer iPhones, the report says. This shift in strategy is significant as Apple has generally focused on the lower-end iPhone market in India.
While iPhone unit sales were down significantly in India last year, Apple revenue in India was up 12 percent. Furthermore, Apple’s profit in India doubled year-over-year. The move to focus on more recent iPhones in India will further increase revenue, profit, and average selling price in India:
“Cupertino does not want Apple India to chase volumes by discounting at the cost of profit,” said one leading trade partner of Apple. “These models which are being phased out will increase the average selling price of iPhones in India and boost both profit and revenue.”
A pair of reports last month detailed how iPhone unit sales were down in India at the beginning of this year, but have since rebounded due to carrier promotions around the iPhone XR. Furthermore, Apple is expected to benefit from a regulatory change in India that will loosen the local sourcing requirements. This will allow Apple to expedite the process of opening its own retail stores in the country.
Apple has also recently started pushing the fact that it manufactures iPhones in India as a marketing tactic. Expect that to continue as Apple continues its heavy focus on growing its presence in India.
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