As it turns out, Apple chose to cut the price of its new iPhone 16 Pro model by around 15,000 rupees (about $180). The move had quite a positive response in India, where Apple has already gained significant traction.
The Zhitong Finance App learned that TechInsights published an article stating that the highly anticipated Apple (AAPL.US) iPhone 16 series has been officially released and brought about a strategic shift, which may redefine Apple's development trajectory in key global markets. Recently, TechInsights discussed the possibility that iPhone Pro models may increase in price in India unless Apple seeks to increase profit margins. But it turns out that Apple chose to cut the price of its new iPhone 16 Pro model by around 15,000 rupees (about $180). The move had quite a positive response in India, where Apple has already gained significant traction.
Strategic price reduction in the Indian market
This price cut is a significant development as Apple generally maintains high-end pricing for its flagship devices. Although Apple may still improve profit margins through other strategies, the price reduction in the Indian market reflects Apple's deep understanding of the country's price-sensitive market. This strategic price adjustment is likely to drive Apple's growth in the Indian market, where iPhone's share has risen steadily from 1% in 2019 to 6% in 2023. As the iPhone 16 Pro models become more accessible, Apple has achieved double-digit annual growth rates over the past six quarters, which indicates that by 2024, Apple is likely to occupy 8% of the Indian smartphone market.
This increase was due not only to competitive pricing, but also to Apple's expanding manufacturing base in India, which gave Apple a local advantage in terms of tariffs and production costs. As India becomes one of the largest and fastest-growing smartphone markets, Apple's position seems to be solidifying.
The challenges of the Chinese market
While the Indian market looks promising, Apple faces major challenges in its biggest overseas market, China. One major obstacle is that Apple's new “Apple Intelligence” feature will only be available in English throughout 2024, while Chinese support is not expected until 2025. In contrast, local rivals such as Huawei are making progress, introducing devices that fully support local languages and have cutting-edge designs, such as the new three-fold model released with the iPhone 16.
Huawei's progress and restrictions on Apple products in China have increased the complexity of Apple's market in China. As China increasingly promotes local brands, Apple's growth prospects in the region seem limited.