Feeling the heat from Chinese and domestic smartphone vendor in the budget market, Apple has discontinued the iPhone 4s and 5c smartphones from India, reports ET. The move comes from the company as its exits the sub Rs. 20,000 smartphone segment in the country in a bid to boost its falling average selling price (ASP) and increase profits.
The iPhone 4s and 5c was selling in the country for Rs. 12,000 and Rs. 20,000 respectively. It is worth pointing out that Apple has discontinued these iPhone models in the U.S and other global markets some time ago.
The report also says that Apple's ASP in India increased in Q4 2015, due to the new iPhone 6s series, but declined 20 percent compared to Q4 2014. By discontinuing the affordable iPhone models Apple is pushing users to go for the iPhone 6s and iPhone 6s Plus. To boost sales the company had also introduced various offers like discounts and buyback schemes.
Apple had also slashed the price of iPhone 5s in December and was made available for as low as Rs. 24,999, and if the report is true, the iPhone 5s is currently the cheapest iPhone in India. The sub Rs. 10,000 and 20,000 smartphone segment, which is conquered by Chinese and domestic vendors is among the fastest growing in India. Analyst believe that with Apple's exit from this market, will see an increase in market share for the likes of Samsung and Chinese smartphone makers.
As per reports, Apple is expected to launch the 4-inch iPhone 5se in March 2016 as an enhanced version of iPhone 5s, targeted at emerging markets, and we can expect it to land in India. This could also be one of the reason for Apple to discontinue its cheap iPhone models.
Apple is also planning to set up its own retail stores in India. The company is gearing up to open its development centre in Hyderabad, and also seeking permission from government to sell and manufacture refurbished iPhones in India.
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