The Secret Reason Apple Never Cuts iPhone Prices In India
Apple's pricing strategy in India focuses on the country's affluent 'India A' demographic rather than the national average income. By targeting this high-spending segment, Apple has successfully turned India into a major growth market despite the high cost of its flagship devices.
Why it matters
It explains the economic logic behind premium brand penetration in developing economies with high wealth inequality.
There is a number that should make Apple's India strategy look irrational. India's annual per capita income sits at roughly $2,813 (Rs 2,33,479). The iPhone 18 Pro, launched on September 9, starts at Rs 1,64,900. The iPhone Duo, Apple's folding flagship, is priced as high as Rs 4,49,900 -- nearly two times what the average Indian earns in a year.By every textbook rule of economics, Apple should have ignored India's market. Instead, India is one of the fastest-growing markets in Apple's global business. 3 Indias: Countries Within The CountryIndia does not have one economy. It has three, stacked on top of each other and sharing a passport.Think of it as India A, India B and India C. India A is the country's affluent core, a slice of society whose spending habits look closer to Germany's than to India's national average.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in