oppn parties Apple: Will SE Spoil the Party?

News Snippets

  • UP government removed Lokesh M as CEO of Noida Authority and formed a SIT to inquire into the death of techie Yuvraj Mehta who drowned after his car fell into a waterlogged trench at a commercial site
  • Nitin Nabin elected BJP President unopposed, will take over today
  • Supreme Court rules that abusive language against SC/ST persons cannot be construed an offence under the SC/ST (Prevention of Atrocities) Act
  • Orissa HC dismissed the pension cliams of 2nd wife citing monogamy in Hindu law
  • Delhi HC quashed the I-T notices to NDTV founders and directed the department to pay ₹ 2 lakh to them for 'harassment'
  • Bangladesh allows Chinese envoy to go near Chicken's Nest, ostensibly to see the Teesta project
  • Kishtwar encounter: Special forces jawan killed, 7 others injured in a faceoff with terrorists
  • PM Modi, in a special gesture, receives UAE President Md Bin Zayed Al Nahyan at the airport. India, UAE will boost strategic defence ties
  • EAM S Jaishankar tells Poland to stop backing Pak-backed terror in India. Also, Polish minister walks off a talk show when questioned on cross-border terrorism
  • Indigo likely to cut more flights after Feb 10 when the new flight rules kick in for it
  • Supreme Court asks EC to publish the names of all voters with 'logical discrepency' in th Bengal SIR
  • ICC has asked Bangladesh to decide by Jan 21 whether they will play in India or risk removal from the tournament. Meanwhile, as per reports, Pakistan is likely to withdraw if Bangladesh do not play
  • Tata Steel Masters Chess: Pragg loses again, Gukesh settles for a draw
  • WPL: RCB win their 5th consecutive game by beating Gujarat Giants by 61 runs, seal the playoff spot
  • Central Information Commission (CIC) bars lawyers from filing RTI applications for knowing details of cases they are fighting for their clients as it violates a Madras HC order that states that such RTIs defeat the law's core objectives
Stocks slump on Tuesday even as gold and silver toucvh new highs /////// Government advises kin of Indian officials in Bangladesh to return home
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.