I think this will be an interesting development. Give the high $-to-INR rate, and prices of apple products, it will always be a hard sell. Indian consumers won't be eager to spend multiple paychecks on iPhones and don't see Apple dropping prices. Unstoppable force, meet immovable object.

I am not sure why they are making this move, what are their goals for doing so.

India has a huge middle class even if it is a small part of its total population. iPhones won't be popular with tuktuk drivers, but a techy, no problem.

iPhone SE’s are also only $400 now in the US. That should be closing in on the price of other Androids in India.

That’s mid range. Budget phones can be less than 10000 Rs ($130), which is still about 1/3 the median monthly salary.