Why India Was Initially Excluded from the iPhone 7 Launch: An Insight into Market Strategies

The exclusivity of launching new Apple products has often led to speculation and mixed reactions, especially when new iPhone models like the iPhone 7 are not immediately available in certain regions. This article delves into the reasons behind India's initial exclusion from the iPhone 7 launch and how this strategy aligns with Apple's broader market strategies.

Apple's Initial Release Strategy in India

Contrary to popular perception, the iPhone 7 was indeed released in India, but with a strategic delay. According to official statements, Apple flagship stores in major cities such as Mumbai, Delhi, and Bangalore were set to launch the iPhone 7 on October 7, 2016. This carefully timed release aims to capitalize on the festive seasons of Dussehra and Diwali.

Factors Behind the Delayed Launch

The primary reason for Apple's cautious approach towards launching the iPhone 7 in India is the company's prioritization of Indian market conditions, particularly around pricing and import logistics. Here are the key factors:

1. Market Demand and Price Sensitivity

Apple has historically faced challenges in penetrating the Indian market due to high pricing compared to local alternatives. The entry-level 32GB version of the iPhone 7 was expected to have a price tag of around Rs. 60,000, which is significantly higher than the average middle-class Indian's monthly salary of approximately Rs. 50,000. This discrepancy highlights a significant affordability issue for potential Indian buyers.

2. Competitor Alternatives

In recent years, Indian consumers have been presented with viable alternatives to higher-priced iPhones. For instance, the OnePlus 3T offers remarkable features at a much more affordable price. It includes a 5.5-inch Full HD display, a quad-core Snapdragon 820 processor, 64GB of internal storage, a 16MP camera capable of 4K video recording, and a massive 6GB of RAM all for around Rs. 28,000. Comparing this with the iPhone 7 Plus at Rs. 70,000 for 32GB storage, it becomes clear why consumers might prefer other options.

3. Market Research and Risk Analysis

Apple likely conducted thorough market research, which revealed that India's smartphone market is highly price-sensitive. By delaying the launch, Apple may have aimed to study consumer reactions, refine their pricing strategy, and adjust to the prevailing market conditions before a full-scale entry into the Indian market.

Strategic Adjustments and Future Plans

Despite the initial hesitation, Apple has shown a keen interest in the Indian market. With the US market facing decline in iPhone sales, Apple is increasingly focusing on emerging markets like India. This was evident in the accelerated release of the iPhone 7 in India to seize the Indian festive season and boost sales.

1. Targeting Festive Seasons

Apple strategically chose to release the iPhone 7 in India during the Dussehra and Diwali festivals. These periods are known for their consumers' high spending capabilities and keen interest in purchasing new electronics and gadgets, making it an ideal period for iPhone sales.

2. Long-term Market Strategy

Achieving immediate success in India would not be profitable for Apple. Instead, they aim to build a sustainable market presence and gradually phase out their high prices. This strategy involves gradually fostering brand loyalty and reputability in India, paving the way for future, more affordable product launches.

Conclusion

While historically, Apple lacked a strong market presence in India, the landscapes are changing. As the Indian economy grows and middle-class aspirations rise, Apple is positioning itself to capture a significant share of the Indian market. The iPhone 7's delayed release reflects a strategic move to align with market demands and ensures long-term success in one of the world's most dynamic and competitive markets.