Want to sell iPhones? You will have to sell other Apple products too

Apple has been very clear with its words when it told the Indian retailers that they won’t get to sell iPhones until and unless they also stock up iPads, Apple Watch, Apple TV and accessories. This move made by Apple is important to the company as it pushes inventory clear-up for that it has come up with a 'compulsory bundling' scheme for retailers when they buy the iPhone 7, 6s and 6s Plus.

"Apple is undertaking compulsory bundling of its products with iPhone in several markets to clear out inventory. This has become a challenge for the retailers as well, since the demand for these products is low and most of it will remain unsold remaining as dead stock,” the chief of a leading Delhi-based retailer, told ET.

At present, iPhone is the best selling product of the company and accounts for about 80% of its sales. Now, the company is trying to reduce the dependence on just one product. Howeve, retailers said that Apple TV and Watch sales never picked up and a steep decline in the sales of iPad was also seen.

According to three senior trade executives, requesting anonymity, said the company is doing this primarily with the general trade or neighborhood cellphone sellers whom the company has started to tap of late to sell all Apple products. They also said that it’s very clear that sales of iPad, Watch, Apple TV and accessories like covers aren’t much and Apple is expecting to force distributors to push them through general trade.

A senior executive with a leading cellphone retail chain said the retailer does not sell iPads, Apple TV and Apple Watch due to very low demand, though iPhone accounts for more than 20% of its total sales by value.

"The company is trying to push compulsory bundling scheme to the trade to build demand, but this is not a sustainable strategy,” he told ET.