Apple sees India has one its primary drivers of growth in the coming decade, and with that in mind it has taken a step to arrest the falling average selling price (ASP) and increase profits. Apple has discontinued the iPhone 4s and the iPhone 5c, two smartphones that were available in India in the sub-Rs 20,000 segment, ET reports. The iPhone 4s was on sale in India for around Rs 12,000, while the iPhone 5c was available for around Rs 20,000. Both the smartphones had been discontinued in the US and most other markets. Also Read - Apple removes a popular Quran app in China: Know reasonAlso Read - Good news for iPhone loves! Apple beats Xiaomi to regain second position in global smartphone market
By discontinuing the iPhone 4s and the iPhone 5c, the cheapest smartphone in Apple’s India portfolio is the iPhone 5s. Back in December, Apple announced a price cut for the iPhone 5s, which brought the price down to Rs 24,999. Also Read - Apple Music could soon release on the PlayStation 5: Report
The likes of the iPhone 4s and iPhone 5c were important for Apple to take on strong competition from global Android smartphone vendors as well as local and Chinese players. But with that, Apple’s ASP fell, and so did profitability. By discontinuing the cheaper models, Apple is pushing people to opt for newer models like the iPhone 6s and iPhone 6s Plus. To boost sales, Apple recently also introduced attractive buyback offers for its latest iPhones with discounts up to Rs 25,000.
Apple has a paltry 2 percent market share in the world’s second largest and fastest growing smartphone market, which is dominated by Samsung, Micromax and Intex. Even Xiaomi, which made a late entrance in the country has higher market share than Apple.
Apple CEO Tim Cook has acknowledged the importance of the Indian market, which registered a 76 percent growth in iPhone sales during the recent quarter. The company is undertaking initiatives to make its presence felt in the market, which includes opening Apple Stores, as well as manufacturing and selling pre-owned iPhones in the country.
Apple is expected to launch the iPhone 5se in March, which would be an enhanced version of the iPhone 5s and come with a 4-inch display. It remains to be seen when Apple brings it to India as it could push the price of the iPhone 5s further down and bring it to the sub-Rs 20,000 level.