iPhone X sales could be halted Here's why

Apple’s iPhone X has witnessed a strong demand since the time it was showcased in the majority of countries, but that doesn’t necessarily mean that retailers are happy about it. In India, numerous retailers have publicly criticised Apple for slashing iPhone X profit margin to as low as 4.5 per cent, with some claiming that it could drop to 1.5 per cent in the case of card payments.

While the company is yet to release an official statement on its adjusted retail margins, it is believed Apple took this decision because it makes less money through its iPhone X due to its expensive components. The estimated price of making an iPhone X reaches up to $370 when taking the parts into account, while the marketing and research and development would substantially increase the final price.

But retailers in India have refused to accept such low profit margins. Bengaluru-based Sangeetha Mobiles has decided to completely stop the sales of the iPhone X. The retailer operates around 400 stores in the country and more retailers are expected to follow their footsteps.

“Apple has cut margins on the iPhone X from 6.5 percent to 4.5 percent for large retailers like us, and if a customer pays by card, which is usually the case, the margin reduces to almost 1.5 to 2 per cent,” Subhash Chandra, managing director at Sangeetha Mobiles told the Economics Times.

“How on earth do they expect the retailer to work for them for free — our overheads are anywhere around 10 percent,” he added.

Apple is the only firm that has reduced the profit margin, while its rivals are taking a completely different approach in order to expand in the Indian market.

Xiaomi and Samsung are said to be offering up to 12-15 per cent profit marging on every device sold, while Oppo and Vivo have promised even bigger amount, in an attempt to grab more market share.