Apple's iPhone 17 price strategy faces demand crunch in India: Buyers shift focus to Pro models

Apple is reportedly reducing production for the standard iPhone 17 model in India due to weakened demand after a price increase of more than 20% last month. According to an Economic Times report, Apple is redirecting the manufacturing capacity for overseas markets, where demand remains strong. However, the demand for iPhone 17 Pro models and the new iPhone 18 Pro models remains strong in India.

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Why is Apple shifting its iPhone 17 manufacturing strategy in India?

In September, Apple increased the price of the iPhone 17 model from Rs 82,900 to Rs 99,900 for the 256GB model, showcasing a Rs 17,000 price hike. Despite festive sales across e-commerce and retail stores, the price remained considerably high, making the model less attractive to price-conscious buyers.

A person familiar with the matter told ET that Apple regularly adjusts iPhone manufacturing based on demand, and a production cut could also be a temporary reduction. Last year, Apple reduced production of the iPhone Air, highlighting that its part of of its usual manufacturing process. Therefore, if iPhone 17 demand picks up in coming months, Apple could plan to increase production and use its manufacturing capacity accordingly. 

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Apple’s launch strategy

Apple changing manufacturing plans for the standard iPhone 17 is unusual, considering iPhone 18 skipped the September launch window, making iPhone 17 the latest standard iPhone available to consumers. Around 85% of iPhones sold in India are standard models, and demand for these devices is important to Apple's business in the country. 

Traditionally, when a new generation iPhone model is launched, it reduces the price of older generation models. This attracts several Indian buyers to purchase a year-old iPhone model as it gets affordable. However, amid unprecedented times, Apple raised the prices of existing iPhones by up to 29%, instead of reducing them. This is considered to be the reason for slower iPhone 17 demand.