Why Apple pulls prices in India and uploads them in Spain? - CYDIAPLUS.com


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Tuesday, 4 July 2017

Why Apple pulls prices in India and uploads them in Spain?

This morning we got up with news that probably will not be very funny to Spanish users and by extension, to any other European or American buyer. And is that while in the West Apple continues to bet on increasing their prices due to the implementation of innovative technologies in their devices - for example we know that the iPhone 8 will cost more than a thousand euros - in other countries like India, not only do not go up But rather reduces them considerably.

Apple is immersed in a process of opening to new markets with a very particular series , such as the Indian or Chinese market, where in addition to facing a profile of consumers with much lower purchasing power than in the West, they face the challenge of the market Of imitations. However, we talked at the time of the peculiarities of the Chinese market , where it is necessary for smartphones to resemble the iPhone to sell, but interestingly it is not the iPhone the best-selling terminal but this post is topped by the Oppo R9, the so-called Chinese iPhone.

These days Apple has been unmarked lowering the prices of all its terminals , and is that if in India and had a lower retail price - in fact they are manufactured there to try to reduce costs even more - now have experienced A reduction of 7.5% to try to curb a new tax that has seen the light in the Asian country that taxes goods and services.

In fact, this strategy in emerging markets obeys the most basic laws of capitalism. In the curve of supply and demand, Apple knows that the demand curve is lower in Third World countries, that is, by applying its usual strategy Apple can not persuade so many people to buy their Macbook, iPad, iPhone , Apple Watch ... as in the West

So it chooses to reduce costs to the maximum and also, to shift its supply curve to the right, that is, to offer its products for less price, so that the price will seduce the potential buyers . On the contrary, in the West it does not require doing this because its profits continue to increase despite their price increases, or what is the same, the average consumer is able to face these price increases and assumes them .

Via | 9to5Mac

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