Gone are the days of “an apple a day keeps the doctor away”. We are now confronting a new blurb: “an Apple a day keeps the client in sway.” The way new models are being pushed into the market, it may soon be an Apple a day, every day!
Today’s news of Apple launching its first foldable iPhone in India at ₹2,99,900 is the sensation that has taken the Indian mobile market by storm. The company has included India among the more than 65 countries and regions where its latest Pro models will be available for pre-order. Those who feel ₹3 lakh is unaffordable can settle for the new iPhone 18 Pro and 18 Pro Max, starting at ₹1,64,900 and ₹1,79,900 respectively.
Is this news sweet or bitter for Indians living in India? Looks like it is both.
The Government can walk away with additional revenue in the form of GST for every phone sold. Dealers may be the happiest lot, while customers rich enough to afford these phones can flaunt the latest addition to the chain of mobile models they may already possess. The poor, who cannot afford them, dare not even dream and settle for an economical Android version or, at best, the good old Nokia.
A foldable phone is not new to the market. In fact, Samsung introduced its first Galaxy Fold in 2019, while Chinese company Royole had introduced the FlexPai a year earlier, in 2018. Yet foldables remained a niche segment for years. Apple has now entered this market with its own interpretation of the technology.
While we can set aside the rich and the poor, it is the middle class that may take the brunt of these expensive phones and drown itself in an economic soup. Unfortunately, people often fall prey to the temptation of buying a product first and worrying about affordability later, getting entangled in deadly EMIs and literally leading their lives in instalments—except perhaps when buying salt!
Why do people have a craze for certain products, be they garments, footwear, leather bags, cosmetics or electronic goods? This craze reminds us of the good old Telugu proverb, “puli ni chusi nakka vaatha pettukundata”, roughly meaning that a fox burns stripes on its body after seeing a tiger, assuming that it can become one.
Buyers of such products can become victims of a powerful mix of status, smart marketing and human psychology.
The irony is that the customer ultimately pays for a portion of the advertising and marketing expenditure incurred by the company, as such costs are factored into the overall price of a product. If the premium smartphone market in India is worth billions of dollars, companies will naturally spend substantial sums on advertising and marketing. The customer, therefore, is not merely paying for the hardware but also for the brand, marketing, distribution and the entire ecosystem surrounding the product.
And that too, often in instalments.
He may also pay a substantial amount for insurance against theft, accidental damage and other risks. Yes, when intelligently and extensively used, a simple iPhone can be a revenue generator or a productive tool. But how many buyers actually exploit the full potential of such sophisticated devices? A large number may be purchasing them for status, aspiration, brand value or simply because powerful marketing has convinced them that they need the latest model.
Apple and other premium smartphone manufacturers should not exploit the aspirations of gullible middle-class consumers. Instead, they should explore ways of making advanced technology more affordable, particularly in emerging markets.
Apple has earned enough to look at this angle when it seeks to capture markets in Asia, where millions of people are slowly but surely moving up the economic ladder through sheer hard work. This could perhaps be achieved through models that retain frequently used features without stuffing the device with technology that a majority of users may never fully exploit.
So, is it possible to offer cheaper versions from a cost perspective, with limited but essential features, so that more people can buy them within their means without succumbing to the deadly monster of EMIs?
When the basic calculator was introduced, it was found that hardly 30 per cent of its features were actually exploited by ordinary users, while the remaining features saw very little use. Take a mobile phone today. Only a tech wizard can perhaps put all its features to use—and even then, some of that usage may be driven more by fascination than genuine need.
A calculator costing ₹110 in the 1970s was barely affordable for many, but thankfully, it did not come with the burden of EMIs. These are days when children want the cake and want to eat it too, without always being able to understand or empathise with the delicate trapeze-walking act their parents perform to balance household finances.
There have also been disturbing reports from different parts of the country of family disputes involving smartphones and, in some cases, tragic deaths following disagreements over expensive devices or restrictions on their use. Such incidents underline a larger social problem: when a gadget becomes a symbol of status and personal identity, the inability to possess it can sometimes generate disproportionate emotional pressure, particularly among young people.
Government should therefore explore a win-win solution—allowing Apple and other manufacturers to expand their sales while ensuring that consumers are not pushed into irresponsible debt. Financial institutions, manufacturers, dealers and regulators could together examine responsible financing mechanisms and stronger consumer-awareness measures, particularly for young buyers and families.
Can the Government, banks and the industry together find a way to ensure that an iPhone reaches the genuinely capable buyer and not merely the aspirational buyer who cannot afford it but wants to buy it at any cost?
Technology should empower people, not burden them.
The lesson is simple: don’t chew an ‘Apple’ more than you can bite!
