oppn parties Apple: Will SE Spoil the Party?

News Snippets

  • Terrorists strike on the outskirts of Srinagar, kill 2 BSF men
  • Alluding to the border dispute with India, Nepal PM says "Indian virus" is more dangerous than the Chinese or Italian virus
  • Bengaluru hears a mysterious booming sound. Agencies investigating the matter. Met says not due to earthquake. IAF says could be due to supersonic speeds attained by test flights but inquiries ar on.
  • Civil Aviation minister Hardeep Puri says it will not be viable to keep the middle seat of aircrafts vacant when air travel starts from Monday, 25th May
  • JEE(Main) registrations reopened. Candidates can apply until May 24
  • Junaid Sehrai, a top Hizbul Mujahideen commander, killed in an encounter with the security forces at Nawa Kadal in Srinagar
  • Railways to run 200 non-AC trains from June 1
  • Centre changes rules for Shramik special trains, terminating states' permission no longer mandatory
  • Rahul Gandhi asks the government to reconsider the economic package, advises it transfer money directly to the poor
  • SBI gets Rs 1.25 lakh crore growth in deposits in April 2020
  • Cereals, edible oils, oilseeds, pulses, onions and potatoes to be de-regularized
  • The Centre decides to amend the Essential Services Act to ensure better prices for farmers
  • Housing subsidy scheme CLSS for middle-income group extended till March 2021
  • 50 lakh street vendors to be provided Rs 10000 each as working capital loan
  • Free food will be given to migrants. Each family to get 5 kgs of wheat/rice and 1 kg chana. Measure to benefit 8 crore families with the government spending Rs 3500 crore
India Commentary wishes to all its readers a very Happy Id-Ul-Fitr
oppn parties
Apple: Will SE Spoil the Party?

By Ashwini Agarwal
First publised on 2016-04-26 16:44:21

Apple launched a new device, iphone SE, sometime back. It got a very negative response from buyers, due mainly to its high price tag. Faced with such a situation, most companies would have gone for a price correction. But trust Apple to be different.

It has gone ahead and raised prices of all its other devices by up to 29 percent. The company has said that this was to push up the sales of the SE as it found that devices bigger than SE, like iphone 6 and 6S, were priced at lower rates. The company thought this was hampering SE sales.

This kind of inverted pricing logic is not going to work. The latest price revision will take all its devices out of reach of a large majority. Even those who buy Apple just to flaunt will think twice before dishing out a fortune as better products at lower prices are available in the market. "But an iphone is an iphone” will cease to matter if it is priced beyond a certain level.

Already, Apple’s market is shrinking across the world, including India. KGI Securities’ analyst Ming-Chi Kuo has predicted that with no pathbreaking innovation, users are going to shrink further and Apple will be one of the top 5 underperforming smartphone brands in 2016.

This illogical price rise will dampen buyer mood in India. As it is, people were not converting to iphone 6 or 6S as prices were high and resale value of old device was low. A major rethink is necessary at Apple regarding pricing policy and features innovation.