Apple products are unarguably looked-forward to by a lot of us, but one big factor that easily holds anybody back is the hefty price tags that come with it. Consequently, e-commerce discounts and sale period is something we often look forward to for a better deal than usual. However, if reports are to be believed, that little spark of hope may be a thing of past soon.
ET reports that according to a rejig in the sales sales strategy by Apple’s new Indian head, Michel Coulomb, these discounts may soon come to an end. The report suggests, “Apple India has more than halved distributor margins to 1.7 to 2.5 percent and given distributors specific areas of responsibility to protect those margins. Before this they were free to sell to any trade partner, which meant stock could be sold at a discount online by giving up some of those fatter margins.”
Further, Apple reportedly plans to open its brick and mortar stores in India by 2020 or 2021. The new strategy plans to “increase sales from Apple brand stores and stop indiscriminate online discounting which distorts brand image”. It is the mentioned discrepancy in offline and online pricing that apparently more than half of all iPhones sold in India are purchased via e-commerce channels. Comparatively, only one-third of all smartphones are sold online.
Moreover, the report quotes an unnamed senior executive as saying, “Apple will not directly control price since it is against policy. However, these efforts will tame online discounts once the existing stock gets sold out and will bring channel hygiene. It may also rope in another distributor in India.”