Apple isn’t a sucker for competing on price. It’s almost as if the company dreams up a number and puts out a product great enough to justify its price. Further, Apple isn’t known to discriminate with differential pricing depending on regions.
With Apple Music, however, the company is taking a different approach. The company charges a monthly fee of $10 for individual access and $14 for a family account every month in the US. Users in India on the other hand pay a monthly fee of just $2 and $3 respectively.
Pricing of Apple Music in developing countries is noted to be lower than what the company charges in the US. In Indonesia, Thailand and Brazil the service is sold for $5 and $7, in Hong Kong it costs $6 and $10 and in Singapore Apple Music costs $7.50 and $11 per month.
While Apple is looking to take on Spotify in the US market, in developing countries, especially of South-East Asia, local players are more dominant. By serving up mostly local content, they can keep the costs down, which is why Apple Music needs to be cheaper.
Apple Music is the first service from Apple to make its way to Android devices too, meaning the majority of Android smartphone users in the country will be able to sign up for the service. Apple might have gotten away charging $10 in India for its service was it locked only to its own devices.
India is also one of the markets on Apple’s high-growth radar, meaning the company can potentially use services like Apple Music to lure people into buying its products. With Apple Music, the company can successfully reach out even to Android users.