Previously, we had seen that Apple has been planning to expand its business in India, with its first retail outlet in Hyderabad. Though this was planned a long time back, some technical issues with the application stopped it. At the present, Apple has rectified the errors and is going ahead with the plan. On the other hand, Apple is also looking to increase their profits in India by increasing the market value. Reports show that Apple has stopped the selling of two of Apples top iPhone models, iPhone 4s and 5c. This is basically done to increase the selling price of the model and re‐introducing it to the Indian public in order to pull in more revenue. According to the news reports published in the Economic Times, Apple feels that the selling price of these iPhones in India is under strain.
Initially, the Apple iPhone 4s was available to the Indian public at as less as 12000 INR which amounts to around $175 USD. On the other hand, iPhone 5c was available in India at just 20000 INR, which amounts to $292 USD. In comparison to the selling price of these items in other countries, the prices India got are very low. Last year, in December, Apple had taken the decision of lowering the selling price of the iPhone 5c quite dramatically in order to increase the sales rate of the device. This showed that in future, Indian public will have to get the iPhones at more than 20000 INR, since the new price of the 5s is quoted at 24000 INR. Moreover, in the future, the new iPhone 5se will be available at the same price as the iPhone 5s.
According to the CEO of the company, Tim Cook, the general public will be willing to pay higher amounts for better smart phones, even in India. The research done my Apple personnels also showed that Indian citizens are willing to pay more for better featured phones and Apple does not need to send less features phones in India at lower prices, just to increase sales.