When Apple launches its new iPhone 14 series in India in the coming weeks, it is likely that the pricing will be at an unprecedented high at least for the top-end models. If the prices of the iPhones, and other Apple products, command an extra premium this year, it will not be because of the chip shortage and supply chain issues afflicting tech companies across the world. It will be because of a very Indian problem. The Indian Rupee has been at an all-time low over the past few months with no visibility on when the currency is expected to recover its levels or even strengthen against the US dollar. Apple, which does not prefer to either raise or drop its prices at least till a new product range is launched after a year, usually keeps a price buffer in India on top of the original Dollar pricing to help it absorb fluctuations in currency. It usually changes pricing otherwise only because of tax rate changes. This year, however, with an extra volatile Rupee hovering around Rs 80 to a Dollar, it is possible that the company will hedge against this by increasing this price buffer, especially if it is not very optimistic about the conversion rates in the coming months given the grim geopolitical situations. But there could be some exceptions to this. For one, in an attempt to capture a larger premium market share in India, Cupertino could keep the prices of the new models similar to the launch prices last time. These launch prices anyway have some buffer built into them, and Apple will have to hedge for that being enough for at least another year. What could help Apple though is that the newest models are also made in India to some extent, thus helping it keep costs low in the Indian market. When launched, the iPhone 13 series had the same price as the iPhone 12 series, though with more storage, thus making the cost of ownership lower in one way. The iPhone 13 Mini had a starting price of Rs 69,900 and the iPhone 13 at Rs 79,900, exactly the same as the year before. Apple could end up selling the new iPhone 14 at a starting price of Rs 79,990 thus holding the price, but pushing up the average selling price of the range itself as the mini is not likely to be a part of this year’s lineup. But last year the Dollar was at Rs 74, almost 10 per cent less that the present rate. As the volumes of iPhones, and other smartphones sold, have not been growing at a high pace over the past few years, Apple has had this strategy of going more premium with the pricing to protect its revenues. It helps that Apple has over the years been able to cultivate an audience with a relatively less price elasticity when it comes to the demand for its products. In India, there is a very good market for older iPhones which become more accessible with every wave of new devices being launched. This time too the iPhone 13 and older series phones are what Apple will look towards in order to increase its base in the country. The idea is that these will become more appealing to first-time Apple users. Now to see how Apple ultimately prices its products for the Indian market this time around.
