AppleApple to push for uniform online, offline cost for iPhones

Apple to push for uniform online, offline cost for iPhones

Apple is pushing for online and offline retailers in India to follow a uniform pricing system for its iPhones if a new report is to be believed. The move has apparently come about as a result of flagging sales in brick-and-mortar shops and the brand’s plan to open wholly-owned stores in the country.

The chief executive of a leading mobile retail chain alleges that the disappointing sales of the iPhone SE in India has pushed Apple into wanting to implement a uniform cost structure across both online and offline outlets. Other than the new handset, even its other smartphones have suffered when it comes to physical stores, losing out to e-commerce sites because of massive discounts.

Apple iPhone

Online sellers in India are able to offer iPhones at competitive rates since a majority of them buy stocks from cities like Hyderabad and Bengaluru where the VAT is at 5%, as opposed to metros like Delhi and Mumbai where it’s higher at 12.5% to 14.5% only. The difference translates to bigger discounts and less footfalls at physical outlets.

Senior Apple India executives have now gone ahead and informed top vendors and trade partners about the decision to force a system of consistency when it comes to iPhones. Even the practice of distributors lowering the cost by the end of a quarter in order to meet targets will come to an end, according to a senior industry executive.

Also Read: Apple iPhone costs hiked by 29% to compensate iPhone SE failure

In response to the Economic Times’ query regarding the matter, Apple stated that it does not control the value of its iPhones and there has been no change in the MRP.

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