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Apple to end deep discounts on iPhones in India

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Apple has a brand new strategy for India, but it’s not going to make consumers happy. The company is reportedly going to stop allowing deep discounts on its iPhones, iPads, and Macs.

The driving force behind this plan is Apple’s new India head, Michel Coulomb. He apparently wants to dismantle the sales approach favored by the previous India head, Sanjay Kaul. Coulomb is said to be adopting an organized distribution structure for products, ending the earlier open distribution structure.

A senior executive at Apple’s leading trade partner told The Economic Times that the open distribution strategy had created discontent among offline partners since distributors often turned to wholesaling to achieve targets. They were allowed to sell to any retailer, even at lower rates.

Also Read: Apple to launch cheaper iPhone X this year

This, in turn, gave rise to massive cuts online and a daily fluctuation in prices. He goes as far as to claim that Apple was considered a discount brand. Coulomb is supposedly pulling the plug on this structure after reviewing the current situation. He’s said to be taking a hard line on costs and reducing the number of distributors.

Coulomb is rumored to be retaining Ingram Micro and Redington and giving Brightstar, Rashi Peripherals, and HCL Infosystems the boot. His main aim is to keep Apple’s premium status intact, instead of trying to sell as many iPhones as possible.

Apple’s New iPhone Sales Strategy

Apple is probably going to start selling iPhones directly to large retailers and online partners now, giving it more control over the rate. One source believes that there will still be special promotions for its products, but the days of deep discounts are over.

Online stores accounted for over 55% of iPhone sales thanks to huge cuts. This percentage may just dip now, but no one knows for sure by how much. The smartphone series is extremely expensive in India thanks to high taxes. Without offers, it’ll be out of reach for most consumers.