Although India is the world’s third-largest smartphone market (behind the US and China), sales of Apple’s latest devices have recently stagnated.
Just two months after the launch of the iPhone 6s and 6s Plus in India, Apple has decided to drop the price of the two devices. In an effort to boost dwindling sales in the country, the company has lowered prices of the iPhone 6s and 6s Plus by up to 16%.
Apple’s devices are relatively expensive in the country, due in part to high import taxes. On top of that, with relatively low wages compared to the US, the average consumer in India has tended to gravitate towards more budget-friendly smartphones, such as those made by Chinese manufacturer Xiaomi and Indian manufacturer Micromax.
Apple has recently begun aggressively dropping their prices in the country to attempt to gain better market share. Just one week ago, Apple almost halved the price of the iPhone 5s in India, from 44,500 rupees in September to the current price of 24,999 rupees. According to CNET, the 16GB iPhone 6s “now sells for 52,000 to 55,000 rupees ($784 to $830), down from 62,000 rupees ($935) two months ago.”
Samsung has recently avoided high import taxes in the country by opening local factories, making it possible for the company to offer their devices for lower prices. As a result, they have become one of the most popular brands in India’s burgeoning market.
According to Reuters, Apple is looking to do the same, with iPhone manufacturer Foxconn looking to develop 10-12 factories and data centers in India by 2020. Apple is hoping that, until then, the reduced prices will lure consumers into purchasing their newest handsets.