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Apple’s Latest Price Cut

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Apple Music is cutting its prices in India

Uncharacteristically, Apple (AAPL) has slashed prices on its products and services several times this year. Amid sluggish iPhone sales, the tech behemoth has cut their prices in Japan, China, and India.

This month, Apple slashed its HomePod smart speaker’s price tag by $50 to $299. And according to The Indian Express, Apple cut Apple Music’s individual streaming plan from 120 Indian rupees per month (or $1.72) to 99 rupees per month (or $1.42).AAPL rev growth Q1 19

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Apple’s price cut came a month after Spotify’s entry

Apple’s price cuts come after Spotify’s (SPOT) launch in India last month. Spotify offered its subscription service at 119 Rupees a month, reaching one million users within one week of its Indian launch—however, most of those users are likely using Spotify’s free tier.

Last week, Apple slashed its iPhone XR’s price in India by 25% to entice more Indians to buy its cheapest model. Apple and Spotify not only face competition from Amazon and Google, but also Indian players such as Saavn, Gaana, Hungama, and Wynk, whose subscription services are priced aggressively. Although India could offer a larger user base than the United States, it’s less lucrative.

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