Apple’s hardware products cost a bit more than their US counterparts. The company did surprise the Indian users with its latest value-added services like Apple TV+ and Apple Arcade. These services cost less than half in India compared to the US or Europe with a monthly subscription fee of Rs. 99.
The launch date difference of an Apple product in the US and India have been getting slimmer over the years. In fact, Apple TV+ and the Apple Arcade were available in India from day one. Unlike hardware products, where the company has to invest in every unit, a service product works differently. This has helped Apple to price their services at a much lower-price in India to attract more users. When it comes to population, India is in second place and the country is filled with youths and that’s a great thing for services like the Apple TV+. Though the profit margin might take a hit, the company will make it up with a large number of subscribers.
It is not just Apple that has special pricing in India. Amazon Prime Video and Netflix are also cheaper in India especially after the newly launched mobile-only Netflix plan for Rs. 99 per month. Unlike western countries, users in India consume a lot of content on-the-go, especially after the Jio revolution with affordable 4G internet and smartphones.
This simple economics is beneficiary for Indians and brands alike. It is like a give and take policy. Just like Amazon Prime Video and Netflix Apple might also produce content that Indians can relate to further expand their user base. Web series like Sacred Games and Mirzapur have gained a lot of traction and the brands have also planned for sequels. Apple has also started to assemble some of their smartphones in India and it is likely to reduce the cost of the iPhones making it more affordable and services like free Apple TV+ subscription for a year will further boost their hardware sales as well.