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Apple iPhone 16 Pro price cut: What it means for Indian buyers and premium smartphone market

Apple iPhone 16 Pro price cut: What it means for Indian buyers and premium smartphone market

Apple has reduced the prices of its iPhone 16 Pro models in India by ₹15,000. This move is expected to boost sales and expand Apple's presence in the premium smartphone market, especially with the festive season around the corner.

Danny D'Cruze
Danny D'Cruze
  • New Delhi,
  • Updated Sep 11, 2024 9:19 AM IST
Apple iPhone 16 Pro price cut: What it means for Indian buyers and premium smartphone marketApple iPhone 16 Pro

Apple’s decision to significantly reduce the prices of its iPhone 16 Pro models in India is set to make a notable impact on the premium smartphone market. While the iPhone 16 and 16 Plus remain priced similarly to last year’s models, the iPhone 16 Pro (₹1,19,900) and iPhone 16 Pro Max (₹1,44,900) have seen a substantial ₹15,000 price drop compared to their predecessors. This reduction is expected to boost sales and increase Apple’s footprint in the ultra-premium segment, particularly with the festive season around the corner.

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Industry experts point to several factors behind this pricing shift. Navkendar Singh, Technology Industry Analyst at IDC, notes that the government’s recent reduction in custom duties on imported phones has played a crucial role. He adds, “The iPhone 16 Pro and Pro Max prices have dropped significantly due to the lowered custom duty, and with the expectation that these models will soon be manufactured locally in India.”

This price reduction is a strategic move that will likely widen the appeal of the Pro models, shifting the balance of sales in India. Singh highlights that while non-Pro models usually account for the majority of iPhone sales (about 75%), the Pro models are now expected to contribute around 40% of sales, thanks to their more affordable pricing.

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Growing local manufacturing and consumer financing

Tarun Pathak, Research Director at Counterpoint Research, highlights another key factor: local production of Pro models. “Apple is passing some benefits to consumers since Pro versions are now being produced locally,” says Pathak. Though prices are lower than before, he points out that they’re still high compared to other markets.

Pathak believes that while the ultra-premium segment in India is expanding, it remains a niche market. Most buyers in this category rely on financing options to make their purchases. “Around 6 out of 10 users in the premium segment buy smartphones through financing schemes,” Pathak explains. With more financing options available, Apple has been able to make its high-end phones more accessible to a larger portion of India’s population.

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Pathak also predicts that the price cuts, combined with trade-in offers and possible festive season discounts, could make the iPhone 16 Pro a highly attractive option for high-end consumers this year. The shift towards premiumisation in India’s smartphone market is a significant factor in Apple’s success. According to industry data, around 17% of smartphone volumes and 45% of market value now come from premium models priced above ₹30,000. This trend has been a driving force behind Apple’s increasing market share.

Prabhu Ram, VP of Industry Research Group at CyberMedia Research, views the price drop as a catalyst for upgrades in the Indian market. “The iPhone 16 Pro series comes with more accessible pricing compared to the previous generation, which is expected to drive upgrades,” says Ram. With the festive season approaching and the premium smartphone market in India on a steady rise, Apple is well-positioned to capitalise on the growing demand.

The road ahead for Apple in India

Apple’s strategy in India is not just about iPhones. The company’s ecosystem, including iPads, Macs, Apple Watches, and AirPods, is gaining traction as well. Pathak expects Apple’s revenue in India to grow by 18% year-over-year in 2024, with iPhone sales continuing to lead the charge. He also forecasts Apple’s revenue to exceed $10 billion by 2025, thanks to growth across its entire product range.

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The price reduction of the iPhone 16 Pro models in India is set to have a far-reaching impact on the country’s premium smartphone market. With local manufacturing, better financing options, and a growing appetite for premium devices, Apple is in the right position to capture a larger share of the ultra-premium segment, especially with the festive season set to drive consumer demand.

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Published on: Sep 10, 2024 3:05 PM IST
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