In spite of its increased marketing and distribution activity in India, I don't believe Apple cares much about India, or cannot change enough to be more successful in the market.
Yesterday, Sanjay Bafna, editor of TelecomTalk tweeted about the iPhone 5s "official" pricing for India (Nov 1 launch).
I was quite surprised when I saw the prices. At Rs 52,500, the 16GB iPhone would be amongst the most expensive smartphones in the country. Not only that, it reflects a 20+% premium to its price in USA.
The unlocked 16GB phone is priced at $649 in the US; add about $40 for tax (varies by state). At today's exchange rate, that's Rs 42,675. Some states in India like Maharashtra charge higher VAT (12.5%) for mobile phones, so adjusting for that, you would get Rs 45,150.
The rumoured price is therefore a 23% premium on what it would cost in the US and about 16% premium over what it should cost (logically) in India. (I am assuming that shipping from China to India is not more expensive than China - USA.)
Recently, there was a lot of discussion about how Apple is looking to rapidly expand its presence in India. I don't think that adding to its distribution chain in 50 smaller towns is going to help much at these price levels. Undoubtedly, there are many rich Indians who live in rural India and they seek the latest / premium products but there is also a value consciousness amongst most Indians. Those who can afford to spend Rs 50-60K on a phone will have someone get it for them from the US.
Also, take the 64GB iPhone, for instance. At Rs 72,500, it would be more expensive than the 128GB 11" Macbook Air (Rs 67,900)!
I love Apple products and am fully invested in their eco-system. Yet, I would think hard before purchasing an iPhone in India. I understand that the iPhone positioning is that of a premium product and it doesn't seek to compete on price. Apple doesn't need to do special pricing for India - just offer it at the same price levels that it does in its home market.
Note: I am still hoping that the 5s will be launched at the same price as the 5 (Rs 45,500 for the 16GB) or at most, Rs 49,999 (to account for some forex fluctuations).