India is super status conscious! That’s the learning from the way Indians buy their Apple smartphones.
Apple is an aspirational phone and the reason why people buy it is to probably show the world around them that they are well-to-do and have ‘arrived’ in life. So what is the phone has been bought on an EMI or a loan from a relative or by breaking all the FDs and bringing the savings down to zero!
Apple has a cheaper version – the 4-inch iPhone SE. It costs around Rs.20,000 and has a screen smaller than the largest selling model, iPhone 6, which sells for over Rs.24,000. Despite the price difference, people prefer to buy the iPhone 6 because they feel why save Rs.4000-5000 when you can show those around you that you can afford the 6. Thus settling for a cheaper version is just not done.
Whether we like it or not, time and again, like the Tata Nano, Indians have shown that they are flamboyant and want to show-off their status at every possible opportunity, irrespective of whether they can afford it or no.