To improve the selling price and profitability, the sales of certain iPhone models have been seized by Apple in the Indian market. Models like iPhone4S were withdrawn yesterday by the company. The cost of the phone was being sold for around Rs. 12,000. To help get more customers as well as increase the share the company has put an end to selling the iPhone 5 c which was costing around Rs. 20,000. With this move, the company has left the fast growing Rs‐ 20,000 range Indian market.
The average sale price had grown in India market during 2015’s last quarter. This increase was seen after iPhone6S was introduced in the market. However, they have also seen a 20% drop in comparison to last year. It is believed by analysts, that the move made by the company may also lead a hike in the share for the company’s rival Samsung and even some other Chinese brands.
Tarun Pathak, a Sr. Analyst working for Counterpoint Research believes that the gap that has been caused due to the retrieval of iPhone 4S may be filled by iPhone 5. As per a statement made by Pathak, he said that the price cut that was made recently on iPhone models is on the same lines of the strategy that the company is making to provide customers with a model that is affordable. They are also trying to target young audience who are looking for a smart phone upgrade within the same range.
Tim Cook, the CEO of Apple recently stated that the mobile market in India is the prime focus for the company’s energy. While presently there are around 200 million smart phone users, if you look at the company’s population that is still not even a third of it. The cheapest smart phone was launched by a local maker of handsets today. This coasted not even $7. This was part of an Indian Campaign that was done by government.