iPhone X may go off Shelves soon as Apple cuts down on Retailer Margins

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According to a recent news published in the Economic Times Apple Inc has slashed down retailers margins by 30% on the iPhone X which is their 10th anniversary edition in the market. It has been observed in the market that while manufacturers of other brands offers a margin of 10-15 per cent to its retailers on their latest mobiles Apple offers only 6.5 per cent and the same is being offered for the newly launched iPhone X. But the company has reduced the margin of retailers to mere amount of 4.5 per cent which is almost 30 per cent less than others which has caused many retailers to stop taking orders for the much awaited phone in the market.

iPhone X’s sale started from November 3rd and the phone quickly went out of stock from the market but the scenario seems to be completely different now as it would be very hard for people to get the phone in the market. It is Apple’s most expensive phone till date as it starts at a whooping amount of Rs 89,000 for the 64GB model, Rs 1,02,000 for the 256GB model. But despite of such a huge pricing of phone people are all lined up to buy the phone.

Subhash Chandra who is the managing director at Sangeetha Mobiles recently told in an interview to the Economic Times that the margins have been now reduced from 6.5 per cent to 4.5 per cent and it reduces to mere 1.5-2 per cent for the customers who plan to pay money for the phone through card. It is being reported that India’s leading brands like Samsung and Xiaomi offer more than double the margin that Apple offers which sums upto a whooping amount of around 12-15 per cent and other Chinese brands such as Oppo and Vivo offer very high margins to retailers to gain a good market share. This decision by Apple is not being considered as a good decision as chain owners and small-scale retailers in the market are not at all happy with this decision and in fact are very furious. This move has resulted some retailers like Sangeetha Mobiles to stop taking orders of the iPhone X and many other big retailers will also stop taking orders in future.

Analysts of the market believe that this move by Apple will have an impact on Apple’s focus in India and that it should keep India at a risk of losing out to its rivals in the market like Samsung, Xiaomi, Oppo and Vivo, Lenovo, Redmi etc among others. Apple need to think about the decision and will have to do something for it now because if they lose a market in India than in next two years it will see its drop rate in the market going very high, it would be very difficult to grow faster and mark its image and impact in the world’s second largest smartphone market. Apple CEO and others have not commented yet and have declined to do so on the margin cuts and supply issues in India. But according to some retailers, people in our country are ready to give a premium on the phone and are ready to pay a whooping amount come what way so for some retailers there no option left but to work with iphone’s margin cut to such a large extent. So the situation is a little bit dicey but Apple needs to do something to maintain its craze amongst the audience as well as the retailers.

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