Apple's iPhone XR discount may not be as attractive as it seems on paper

Apple's authorised e-commerce partners like Flipkart and Amazon India are already offering the iPhone XR models at a discounted rate

To lure buyers in the upcoming  Navratri season in the northern and eastern parts of the country, consumer technology giant Apple is coming up with a limited period offer for iPhone XR in association with HDFC– starting Friday, 5 April. 

Apple will be offering a discount of Rs 17,000 on the maximum retail price (MRP) of its new iPhone XR models across sales channels. HDFC Bank customers will further get an additional discount, in the form of cashback, of Rs 6,000 to Rs 7,000 depending on the iPhone XR model they buy. The offer, Apple India said over an email, will be applicable in the form of a 10 percent cashback to customers purchasing through a HDFC bank credit or debit card for both - full swipe down payment and for customers availing the equated monthly instalment (EMI) schemes.

 “This is not a price drop or MRP change, but a limited term promotional offer which starts on Friday April 5. The MRP on our website does not change”, Apple India said in an email.

The upcoming offer, however, may not be as attractive as it seems on paper. Apple’s authorized e-commerce partners like Flipkart and Amazon India are already offering the iPhone XR models at a discounted rate. iPhone XR, 64 GB variant, for example, is available at Rs 69,499 or at Rs 7,499 less than its MRP. iPhone XR 128 GB models are available at Rs 74,999 – Rs 6,901 less than its stated MRP of Rs 81,900.

 While, a seasonal discount from the makers of iPhone is not common in India, of late Apple has been responsive to the dynamics of the local market and came up with similar offers. Apple India, of late, is running similar schemes in association with channel partners and finance companies too. In February, for example, in the wake of Valentine’s Day, Apple had offered an Rs 5,300 discount on its iPhone XR models through select Apple authorized retail stores. Further, a 10 per cent cashback was offered in association with Citi Bank and Axis Bank that effectively brought down the price of iPhone XR, 64 GB model below Rs 70,000 from its MRP of Rs 76,900.

The discount offers from Apple comes at a time, when its shipment is dwindling in India and in the global market. In 2018, shipment of iPhones dropped by 47-50 percent to less than 1.7 million from 3.2 million in 2017. It's market share dropped to 1.2 percent in 2018 – from over 2 percent a year ago. Globally, iPhone shipment dropped to 208.8 million units in 2018 from 215.8 million units in 2017, said IDC.

Table: Apple India launching limited period offer for iPhone XR

Promotional pricing details:
 

Model

MRP

Price for non-HDFC customers

Price for HDFC customers

iPhone XR 64GB

Rs. 76,900

Rs. 59,900

Rs. 53,900

iPhone XR 128GB

Rs. 81,900

Rs. 64,900

Rs. 58,400

iPhone XR 256GB

Rs. 91,900

Rs. 74,900

Rs. 67,400