Indian Retail Sector

10 Reasons for iPhone8 disaster sales performance in India

Apple’s iPhone is most awaited handset launch in the world. This year was not an exception. Technology get new name and dimensions when incorporated in iPhone. This year Apple has announced launch of 3 models i.e. iPhone8, 8 plus and iPhone X. iPhone 8 and 8plus sales started on 29th Sept in India. Apple iPhone 8 and 8 plus has seen coldest response by buyers in history of iPhone.

Iphone8
Iphone8

There is old saying, you can fool all the people sometime, and some people all the time, but you can not fool all the people every time. It looks going well with iPhone8.

Apple has designed fall of iPhone8 unknowingly if not willingly. External factors as well as internal factors are responsible for low sale, here are 10 reasons that resulted in minuscule  sale of handset.

Delayed launch of iPhone X : iPhone in India is luxury and not utility. iPhone X launch has been scheduled to 3rd Nov worldwide and so in India. Indian Elite class, that want to differentiate itself from cattle class hold it temptation and delayed phone up gradation plan by November.

Also Read, Buy iPhone 8 64 GB for Rs. 9200 with iPhone buyback offer

Look alike ID and no premium color for iPhone8 Identity : When you have spent enormous sum of money you deserve applaud from society. iPhone 8 is lookalike ID of previous versions. One thing that could have differentiate iPhone 8 from earlier lot was specific color. Apple has not introduced new exclusive color in iPhone 8 and 8Plus. It has created identity crisis in elite class.

No remarkable feature upgrade in iPhone8 : iPhone8 is mere upgrade version of iPhone 7. Apple has come up with Super Retina display, most innovate feature in iPhone ever however it retained Retina display feature for over priced iPhone X. It is interesting to note that since launch of iPhone 8 , sales of iPhone 7 and iPhone 6 has increased. When one has to display same ID then there is no sense to spend extra money.

Reliance Jio offer : Reliance has come with 70% buyback offer for iPhone8 and 8 Plus if user subscribe for Jio monthly plan. Reliance Jio has not been successful to penetrate iPhone users to switch over to Jio. One reason is that iPhone is single SIM phone so user has to left its loyal operator. Switching of the operator is not very frequent with A class. Still, Reliance has best sale of iPhone 8 in Industry till date.

Also Read, iPhone 8 and 8 plus : Review, specifications and Price in India

However due to Reliance Jio offer, Retailers who constitutes 99% plus of eco system got their consumers suspicious and left out. In India, 99% retailers were on disadvantage to one retailer. It resulted in bad mouth of word publicity for pre-booking and pre-orders by these retailers with Apple.

Samsung galaxy note 8 : Samsung Galaxy Note 8 and iPhone 8 launch collided this year. Note 8 in bezels less a beautiful handset designed to perfection. Samsung has got 2.5 lacs pre-booking for Note8. Note 8 was altogether a new ID and feature rich phone. It got all attention from retailers and consumers. Also, retailer margin is double on Note 8 than any iPhone8. Note 8 cultivated vacuum left by iPhone 8.

Least brand trust for price compensation :  Apple is not known for compensating retailer for price variance. All brands ensure price hygiene in online and offline market. Apple has never interfered in pricing by retailers. So one retailer can sell its goods on Zero margin and disrupt market hygiene. All brands restrict it and levy heavy penalty on retailers. Samsung suggest SRP ( Samsung retail price), so does Oppo and Vivo by pre-defined MOP. if there is price variance by brand they compensate end retailer for unsold units. Due to this, retailers do not hold stock for iPhone and sales push is zero.

Also Read, iPhone 8 leaked Features and image

Prioritizing APR over rest of the stores – Apple play in autocratic style during new product introduction (NPI). Apple India handpicks n choose to place stock at the time of  NPI. Aplle has two priority First APR and Apple promoter stores. APRs ( Apple Premium Retailers) are brand store of Apple and follow brand guide lines.

APRs also get extra margin and exclusive consumer promotions. It differentiate among two retailers, it doesn’t go well with mass retailers. So for Apple there are two kind of retailers Elite class and common class. Common class retailers wish for Apple failure as they were never in its good books.

Strong bug rumor – It was in news that annoying crackling or static noise from ear piece during phone calls and face time calls. iPhone8 is not a great id or come with innovative feature, It added woes to iPhone X dilemma and impacted on sales.

High price difference in India and Abroad : iPhone8 price in India is rs. 64k (64GB)and 77K (256 GB), iPhone 8 plus comes at Rs. 73k (64 GB) and 86K (256 GB). It is at least Rs. 30K higher than other international market.  In same price, One can have a trip for Hong kong and can return along  with iPhone 8 or 8Plus.

No up gradation offer from iPhone 7 to iPhone8 : iPhone user prefer switching over to new model of iPhone. Apple has not come for such offer yet. In India 1000 USD are spent to own an iPhone, Indian are not finding any good reason to spend again 1000 USD on base model of iPhone 8, while in other part of world it can be top model of iPhone X in same price.

By –  admin@indianretailsector.com

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