Retailers in India say Apple has cut profit margins on its new devices and this reduction is hitting them hard. All this is caused by the decrease of about 30% in the margin obtained by retailers for every one of the new iPhone Xs that Apple sells.
This has a direct impact on the sales of the new iPhone X in some countries like India. One of the main Apple-authorized sellers in the Sangeetha, which owns more than 400 stores in Bangalore City, has directly stopped ordering these devices and it does not appear that it is the only one.
The statements of Sangeetha's own commercial director, Subhash Chandra, to the media have been harsh and he complains a lot in the case of Apple with the benefits for the latest model released:
Apple has cut profit margins for retailers with the new iPhone X, ranging from 6,5 percent to 4,5 percent. But this is not all and it is that if a customer decides to pay with a card, which is usually the case in most purchases made by our customers, the margin is reduced to almost 1,5 - 2 percent more.
It also directly compares these figures with the margins they obtain with brands such as Samsung or Xiaomi, which are 12 to 15 percent in the best of cases. In addition to this reduced profit for each of the iPhone X sales, Chandra also complains that Apple is shipping more devices to South Korea and Thailand, causing a bit more anger to authorized sellers in the market. country. It seems that margins obtained in other countries are higher And this makes criticism of the sales commission model that Apple offers to India continue to rise.
Bad news and good news
And it is that not everything seems to be bad in this country regarding the news of Apple. According to the country's Minister of Commerce and Industry, Suresh Prabhu, they are very satisfied with the recent rumor that talks about the supposed iPhone SE 2 model and that this model would be manufactured entirely in the country and They are waiting for the news to be officially confirmed.
On the other hand, Prabhu explains that the work carried out by the authorities of the country together with the Cuepertino giant have been excellent until seeing how at the beginning of the year the manufacture of these iPhone models officially started in his country. It is something that took them a long time and many days of intense negotiations, but now it is bearing fruit in the country and they are satisfied with it.