Apple is known for its premium pricing strategy. No doubt Apple products are on the cutting edge in terms of technology and features. However pricing of Apple products has always been on the “higher side”.
“iPhone X is costly!”
How often have we heard this statement? But how much costly? Let’s try to fathom exactly how much costly is iPhone X.
Good indicator of relative cost of an item across the world is the number of days work required for an average citizen of that country to buy that item.
Assuming iPhone X price at US$ 1,000, let’s see how many days work would be required to buy to an iPhone X in different countries.
Given below is chart of number of days work required to buy iPhone X across the world (based on World Bank data for 2017).
Given below is chart of number of days work required to buy iPhone X across the BRICS countries (based on World Bank data for 2017).
iPhone: 2% market share in India
Given the steep pricing compared to other smartphones, iPhone has been unable to penetrate Indian market in significant way. According to Counterpoint Research, iPhone had roughly 2% market share in India in 2015-2017. The market share has further fallen to ~1% in Q2-2018.
According to Counterpoint Research, the premium smartphone market (costing more than US$ 450 or Rs. 30,000) contributes to just 4% of the overall market in India. The top three brands Samsung, OnePlus and Apple contributed to 95% of the overall premium.
Why people buy iPhone?
There would be different reasons for buying iPhone. While for some the design and looks is the biggest draw and some swear by the impeccable security of iOS. According to you, what is the biggest reason for buying iPhone?