apple products in India and mrp/margins
Today there is news that apple has reduced distributor margin by 50% to 1.7-2.5% which means earlier it was 3.4%-5%.
The basic question I have is how are many distributors online and in market selling iphones at 20-30% discount?
Are these phones being sourced through unofficial channels?
Is apples' distributor sales prices lower than MRP?
please share if you know of have had some experience with this. more
The basic question I have is how are many distributors online and in market selling iphones at 20-30% discount?
Are these phones being sourced through unofficial channels?
Is apples' distributor sales prices lower than MRP?
please share if you know of have had some experience with this. more
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Check for authorized resellers and service providers only. Online sales are normally used phones and some are refurbished ones. Better to buy them from a retail store that is approved by apple. I dont think we should be worried about distributor margins but yes cost does vary a bit sometimes. more
Jan 29
It is doubtful that the distributor margin is only 3.4 to 5% only. Marketing involves various costs like selling expenses, warranty, ads., dealer margin, shipping( inclusive of packaging and transport and delivery) quantity and quality discounts, etc. Normally the MRP is roughly twice the cost of manufacturing less duties and levies. The only attraction for giving discount is the Volume discount in sale as they may sell more volumes and also they could sell the Seconds which according to the manufacturer may not meet the quality standards but could meet the SECONDS quality norms. We may not be revealed about this and could be buying them on sale. more
Jan 29
