To improve profitability and increase its average selling price, Apple has decided to stop selling the iPhone 5c and iPhone 4s in India. Both these phones were among the cheapest in Apple’s lineup in India and were sold at less than Rs. 20,000.
Apple’s decision is a very strange one, especially since the sub-Rs. 20,000 segment is among the fastest growing segment in the Indian smartphone market right now. The iPhone 5s is now the cheapest iPhone that Apple sells in India, which is priced at Rs. 24,000.
Apple’s exit will definitely help Motorola, Samsung, OnePlus and other Chinese brands whose phones are selling like hot cakes under this price range.
As per a senior executive who works closely with Apple, the company continued selling the iPhone 4s in markets like Brazil, India and Russia due to demand and the economic conditions of these countries.
“Their idea is to have an entry-level model at an attractive price to hook newer consumers to the Apple ecosystem which have high retention value.
But it finally decided to stop production due to fall in ASP and to boost sales of newer models in most of these emerging markets,” he said, requesting anonymity.
It is also possible that Apple has stopped selling the iPhone 5c and iPhone 4s in India to prepare for its upcoming rumored ‘iPhone 5se‘, which is expected to be priced at less than $400 and is targeted at emerging markets like India and Brazil.