In month of Oct. Apple iPhone 8 is another cracker that refuses to burst. Supreme court of India has banned sale of fire crackers in Delhi NCR. Wholesalers , distributors and dealers are with full of stock of fire crackers up to 50 lacs kilos. One thing is sure, retailers are not going to burn all these crackers themselves, so they have to wait for Christmas, New year, India Pak Match, Eid etc to sale this stock !
Apple is in habit of providing extra expensive iPhone in India. For example iPhone 8 64 GB price in US in Indian currency is 44k, But Apple want to sale it for Rs. 64k in India. same goes for other variants of iPhone 8, 8plus and iPhone X. Apple has over price iPhone X by rs.30k over price in India.
Apple has been indifferent to nourish channel and take them along. So Far, Apple has survived on good ID to consumers. This Year, Product ID i.e. iPhone 8 and 8 Plus is not ready to move from shelve. Retailers operate with limited working capital, and iPhone 8 has choked them in festive month.
Retailers are offering even last rupee of their margin to consumers even then stock is lying dead. It is open secret that online retailers burn money in month of Diwali. Even they have gone for heavy shopping for iPhone 8, but with their deep pockets they are selling it even less than their purchase price.
As of Today iPhone 8 64 GB price on 3 major portals are
Amazon – 61,900
Flipkart – 61999
Paytm- 52,700 after cash back, Rs. 9000 cash back on 61,700
Calculation : Apple provide 5% margin to retailers, So iPhone 8 64 GB cost them Rs. 60,800. But when selling online payment can be done by credit or debit card, which attract another 1.5% charges. So effective price for dealer is 61,700. Every dealer to liquidate to lowest possible price and want an exit from apple trap.
|Price||Margin 5 %||Net Dealer price||CC charges||Lowest price|
Indian retailers are repenting for planing order for Apple iPhone 8. One of the retailer told, we have got only 10% stock what we have sold iPhone 7 in last October. We were pissed off of lower quantity allocated by ‘The Brand’ Apple. However even this 10% is not moving from shelves. we have increased sale of iPhone 7 and i phone 6 variants. we are worried for capital blockage in this high turn over month of October.