IPhone XS Price Shock: Apple Banks On Cheaper IPhones For India Win

Mobile Phone
Source: Amazon.com

Apple has always been known for its high-end and premium-priced iPhones. However, with the recently launched iPhone XS, the tech giant seems to have taken a different approach. Despite the exorbitant price tag, the new iPhone XS failed to make a significant impact in the Indian market.

Realizing the importance of the price factor in a price-sensitive market like India, Apple has decided to shift its strategy. The company aims to win over Indian consumers by offering a range of more affordable iPhones. By doing so, Apple hopes to capture a larger market share and compete with other smartphone manufacturers who dominate the Indian market.

This move comes as no surprise, considering the intense competition in India’s booming smartphone market, where brands like Samsung and Xiaomi offer a wide range of feature-packed smartphones at competitive price points. By introducing cheaper iPhones tailored specifically for the Indian market, Apple hopes to regain its lost ground and cater to the price-sensitive Indian consumers.

Inside This Article

  1. Apple’s Strategy for India Market
  2. Pricing Challenges in India
  3. Apple’s Focus on Cheaper iPhones to Capture Indian Market
  4. Conclusion
  5. FAQs

Apple’s Strategy for India Market

Apple has been eyeing the Indian market as a significant growth opportunity. With a population of over 1.3 billion people and an increasing number of smartphone users, India presents a massive customer base for Apple to tap into. However, the premium pricing of iPhones has been a major challenge in the Indian market, where price sensitivity is high.

In order to overcome this hurdle, Apple has adopted a strategic approach by focusing on offering cheaper iPhone models specifically designed for the Indian market. The company believes that by offering more affordable options, it can penetrate the price-sensitive Indian market and expand its market share.

One of the key moves by Apple was the introduction of the iPhone XS. This flagship model was launched with various features aimed at appealing to the Indian consumers. The device came equipped with an advanced A12 Bionic chip, improved camera capabilities, and a stunning OLED display.

However, the pricing of the iPhone XS raised eyebrows in the Indian market. With a starting price that exceeded many consumers’ budgets, it was evident that Apple needed to rethink its strategy. The company soon realized that to win in the Indian market, it had to break the price barrier and offer more affordable options to cater to the diverse needs and budgets of Indian consumers.

Apple’s response to this challenge was the release of a range of cheaper iPhones targeting the mid-range and entry-level segments in India. Models such as the iPhone SE, iPhone XR, and iPhone 11 were positioned as more budget-friendly options without compromising on performance and key features.

By offering these cheaper iPhone models, Apple aims to attract a wider customer base in India, including first-time smartphone buyers and those looking to upgrade from older models. The company believes that by making iPhones more accessible to a larger audience, it can improve its market share and ultimately establish a stronger presence in the Indian market.

Furthermore, Apple has also focused on local production in India to reduce costs and improve affordability. By manufacturing certain iPhone models locally, Apple can potentially benefit from tax incentives and lower production costs, which can be passed on to the customers in the form of more competitive pricing.

Overall, Apple’s strategy for the Indian market revolves around offering cheaper iPhone options, local production, and capturing a wider customer base. With this approach, the tech giant aims to overcome the pricing challenges and position itself as a formidable player in the Indian smartphone market.

Pricing Challenges in India

When it comes to the Indian market, one of the biggest hurdles that mobile phone manufacturers face is the issue of pricing. The price sensitivity of Indian consumers is well-known, making it essential for companies to offer affordable options that cater to the needs and budget constraints of the Indian population.

For Apple, known for its premium and high-end smartphones, pricing has always been a challenge in India. The high import duties, taxes, and other levies imposed by the Indian government often result in elevated prices for Apple devices. This, coupled with the currency exchange rates, makes iPhones significantly more expensive in India compared to other countries.

Additionally, the Indian market is characterized by intense competition, with several domestic and international players vying for market share. Many of these competitors offer feature-rich smartphones at much lower price points, further adding to the pricing challenges faced by Apple.

Apple understands the importance of cracking the Indian market and has recognized the need to address the pricing issue. The brand has been devising strategies to make their iPhones more affordable and accessible to the Indian consumers.

One approach is to manufacture iPhones locally to qualify for lower import duties and taxes. To this end, Apple has started assembling certain models like the iPhone SE and iPhone 11 in India, thereby reducing their overall cost.

Another strategy employed by Apple is to introduce lower-priced iPhone models specifically targeted at the Indian market. By offering budget-friendly options with features and specifications that meet the needs of Indian consumers, Apple aims to attract a larger customer base. The introduction of models like the iPhone SE and the upcoming iPhone SE Plus is a testament to this strategy.

Furthermore, Apple has also been exploring partnerships with Indian e-commerce platforms and banks to offer attractive discounts, financing options, and exchange programs. These initiatives help reduce the upfront cost burden on customers and make iPhones more affordable.

While the pricing challenges in India are significant, Apple is determined to overcome them and win over the Indian market. By focusing on manufacturing locally, introducing affordable models, and leveraging strategic partnerships, Apple is positioning itself to address the pricing concerns and provide Indian consumers with a range of options to choose from.

Apple’s Focus on Cheaper iPhones to Capture Indian Market

India, with its huge population and growing middle class, presents a massive market opportunity for smartphone manufacturers. Recognizing the potential, Apple is making a strategic move by focusing on offering cheaper iPhones to capture the Indian market.

Historically, Apple’s premium pricing strategy has limited its market share in India. The high cost of iPhones has been a significant deterrent for price-sensitive Indian consumers. However, with the launch of the iPhone XR and iPhone SE 2020, Apple aims to cater to this segment and make its products more affordable and accessible.

By offering cheaper iPhones, Apple is taking a two-pronged approach. First, it aims to attract brand-conscious consumers who aspire to own an iPhone but are deterred by the high price. With the iPhone XR and iPhone SE 2020, Apple is able to offer a more affordable entry point into the iPhone ecosystem without compromising on the overall user experience.

Secondly, Apple is targeting the mid-range smartphone market, which is dominated by Android devices. By providing a compelling alternative at a similar price point, Apple hopes to lure Android users to switch to the iOS ecosystem. The iPhone XR and iPhone SE 2020 offer powerful hardware, advanced camera features, and seamless integration with other Apple devices, making them a tempting proposition for users looking to upgrade their smartphones.

In addition to affordability, Apple is also focusing on localized strategies to make a stronger impact in the Indian market. It has ramped up its manufacturing capabilities in India, reducing import costs and passing on the savings to consumers. This move is in line with the Indian government’s “Make in India” initiative, which promotes local manufacturing and job creation.

Furthermore, Apple has also introduced attractive financing options and trade-in programs to make iPhone ownership more feasible for Indian consumers. These initiatives provide flexibility in payment options and encourage users to upgrade their iPhones more frequently.

Apple’s focus on cheaper iPhones is a well-calculated strategy to capture the Indian market. By addressing the price-sensitive segment and offering localized benefits, Apple aims to regain its lost market share in India and establish a strong foothold in the rapidly growing smartphone market.


In conclusion, Apple’s decision to introduce cheaper iPhone models, like the iPhone XS, is a strategic move aimed at capturing the Indian market. With its high price tag, the iPhone XS may have initially deterred Indian consumers, who are price-conscious and value-driven. However, by offering more affordable options, Apple has positioned itself to gain a larger market share in India.

The Indian smartphone market presents immense potential for growth, and Apple recognizes the need to adapt its pricing strategy to cater to the preferences and spending habits of Indian consumers. By making iPhones more accessible, Apple hopes to entice a larger demographic of users, who may have previously opted for Android devices due to their affordability.

While the iPhone XS price shock initially caused concern, Apple’s focus on offering cheaper iPhone models demonstrates the company’s commitment to expanding its market reach in India. With its reputation for cutting-edge technology and premium quality, Apple has the potential to carve out a significant portion of the Indian smartphone market.


1. What is the price of the iPhone XS?
The iPhone XS has a starting price of $999 for the base model with 64GB of storage. The price increases for higher storage options.

2. Is the iPhone XS worth the price?
The worthiness of the iPhone XS depends on individual preferences and priorities. It offers top-of-the-line specifications, an excellent camera system, and a premium design. However, it may not be the best choice for those who want a more budget-friendly option.

3. Does the iPhone XS have any new features?
The iPhone XS introduces several new features, including an improved A12 Bionic chip, enhanced Face ID technology, and a more advanced dual-camera system. It also boasts an OLED display with HDR support.

4. Can I use the iPhone XS with any carrier?
The iPhone XS is designed to work with most major carriers worldwide. However, it’s always recommended to check with your carrier to ensure compatibility.

5. How does the iPhone XS compare to other iPhones?
The iPhone XS is a step up from its predecessor, the iPhone X, with improved performance, better battery life, and an upgraded camera system. It also offers more storage options and a slightly larger display. However, it’s worth noting that newer iPhone models have since been released with even more advanced features.