oppn parties Apple: Will SE Spoil the Party?

News Snippets

  • The Indian envoy in Bangladesh was summoned by the country's government over the breach in the Bangladesh mission in Agartala
  • Bank account to soon have 4 nominees each
  • TMC and SP stayed away from the INDIA bloc protest over the Adani issue in the Lok Sabha
  • Delhi HC stops the police from arresting Nadeem Khan over a viral video which the police claimed promoted 'enmity'. Court says 'India's harmony not so fragile'
  • Trafiksol asked to refund IPO money by Sebi on account of alleged fraud
  • Re goes down to 84.76 against the USD but ends flat after RBI intervenes
  • Sin goods like tobacco, cigarettes and soft drinks likely to face 35% GST in the post-compensation cess era
  • Bank credit growth slows to 11% (20.6% last year) with retail oans also showing a slowdown
  • Stock markets continue their winning streak on Tuesday: Sensex jumps 597 points to 80845 and Nifty gains 181 points to 24457
  • Asian junior hockey: Defending champions India enter the finals by beating Malaysia 3-1, to play Pakistan for the title
  • Chess World title match: Ding Liren salvages a sraw in the 7th game which he almost lost
  • Experts speculate whether Ding Liren wants the world title match against D Gukesh to go into tie-break after he let off Gukesh easily in the 5th game
  • Tata Memorial Hospital and AIIMS have severely criticized former cricketer and Congress leader Navjot Singh Sidhu for claiming that his wife fought back cancer with home remedies like haldi, garlic and neem. The hospitals warned the public for not going for such unproven remedies and not delaying treatment as it could prove fatal
  • 3 persons died and scores of policemen wer injured when a survey of a mosque in Sambhal near Bareilly in UP turned violent
  • Bangladesh to review power pacts with Indian companies, including those of the Adani group
D Gukesh is the new chess world champion at 18, the first teen to wear the crown. Capitalizes on an error by Ding Liren to snatch the crown by winning the final game g
oppn parties
Apple: Will SE Spoil the Party?

By Ashwini Agarwal
First publised on 2016-04-26 16:44:21

Apple launched a new device, iphone SE, sometime back. It got a very negative response from buyers, due mainly to its high price tag. Faced with such a situation, most companies would have gone for a price correction. But trust Apple to be different.

It has gone ahead and raised prices of all its other devices by up to 29 percent. The company has said that this was to push up the sales of the SE as it found that devices bigger than SE, like iphone 6 and 6S, were priced at lower rates. The company thought this was hampering SE sales.

This kind of inverted pricing logic is not going to work. The latest price revision will take all its devices out of reach of a large majority. Even those who buy Apple just to flaunt will think twice before dishing out a fortune as better products at lower prices are available in the market. "But an iphone is an iphone” will cease to matter if it is priced beyond a certain level.

Already, Apple’s market is shrinking across the world, including India. KGI Securities’ analyst Ming-Chi Kuo has predicted that with no pathbreaking innovation, users are going to shrink further and Apple will be one of the top 5 underperforming smartphone brands in 2016.

This illogical price rise will dampen buyer mood in India. As it is, people were not converting to iphone 6 or 6S as prices were high and resale value of old device was low. A major rethink is necessary at Apple regarding pricing policy and features innovation.