Apple Slashes Prices in India to Grab Market Share Amidst Rising Component Costs
Apple is prioritizing market expansion in India by lowering prices.
Top Summary
- What happened: Apple launched MacBook Neo and iPhone 17e with aggressive pricing, continuing a downward price trend started in 2025.
- Why it matters: Apple is strategically taking a hit on ASP to expand its user base in a price-sensitive market while competitors are forced to increase prices.
- What changes for people: Lower entry prices for Apple products, making them more accessible to students and first-time buyers in India.
- Who is affected: Android brands, especially those in the premium segment (above ₹30,000), face increased competition.
Apple's Aggressive Pricing Strategy in India
Apple is strategically reducing its average selling price (ASP) in India to prioritize market expansion. This comes at a time when rival brands are increasing prices due to soaring component costs.
The US company recently launched two entry-level products: MacBook Neo and iPhone 17e. These products have been priced aggressively to attract new users, particularly in price-sensitive markets like India, according to market trackers.
Downward Price Trend Since 2025
The downward pricing trend for Apple started in 2025. According to research firm Omdia, the average selling price (ASP) of the iPhone dropped by roughly 2% in 2025 from the previous year.
This decline occurred even as prices increased in the broader smartphone market. The launch of the budget iPhone 16e and strong sales of heavily discounted older iPhones drove this trend.
MacBook Neo Targets Students
In the laptop market, IDC reports that the average selling price in India is between ₹55,000-₹60,000. Apple's average price has historically been double that, driven by its premium MacBook Air and Pro models.
Before the launch of the MacBook Neo, the entry point for a modern MacBook was typically ₹85,000 to ₹1 lakh. The MacBook Neo has lowered this to ₹69,900, specifically targeting students and first-time buyers.
Supply Chain Advantage
Industry experts believe that Apple is leveraging its massive scale at a time when the rest of the industry is grappling with high component costs. This allows the company to maintain aggressive pricing.
"The company's supply chain leverage provides enough of a cushion to maintain aggressive pricing, allowing it to steal market share while competitors are forced to hike prices or restrict production," said an industry executive.
Ecosystem Monetization
Unlike competitors who focus heavily on immediate hardware profits, Apple's strategy involves attracting aspirational buyers to its platform. The company then monetizes through ecosystem sales.
This includes hardware like Apple Watch and AirPods, as well as services such as App Store, Apple Music, and Apple TV.
Pressure on Premium Android Segment
Data from Counterpoint Research indicates that Apple is putting pressure on the premium segment (above ₹30,000) by narrowing the price gap with Android products.
This pressure is intensified as Chinese competitors raise prices due to cost pressures. Prachir Singh, senior research analyst at Counterpoint Research, notes that the iOS installed base grew 28% year-on-year in 2025, compared to just 2% growth for Android in the premium segment.
What to Watch Next
The next few quarters will reveal the long-term impact of Apple's pricing strategy on its market share in India. Monitor competitor responses and any further pricing adjustments from Apple.