Technology Mobiles and Tabs 18 Feb 2016 Apple discontinues t ...

Apple discontinues two old iPhone models in India to improve ASP

DECCAN CHRONICLE.
Published Feb 18, 2016, 5:16 pm IST
Updated Feb 18, 2016, 5:16 pm IST
The move to exit the sub Rs 20,000 segment will lead to a significant increase in market share of rival companies.
Apple discontinues iPhone 4s and 5c in India. (Representational image)
 Apple discontinues iPhone 4s and 5c in India. (Representational image)

Mumbai: In a bid to improve average selling price (ASP) of their devices in India, technology giants Apple recently withdrew two of its aging iPhone models—4s and 5c—from the market.

The company has exit the budget smartphone segment, which is immensely popular in India. According to reports, the company wants to fortify its overall ASP that has taken a toll due to the availability of iPhone 4s and 5c models in the sub Rs 20,000 category.

 

Before the Cupertino-based company decided to discontinue the two models, the iPhone 4s was priced at just Rs 12,000 and the 5c was available for only Rs 20,000.

The initial move to sell low-cost devices in India was aimed at luring in more consumers and now after gaining traction in the Indian smartphone market, the company has decided to concentrate more it’s flagship line of devices. So now Apple’s cheapest iPhone in the market is the 5s priced at Rs 24,000.

This is a clear indication that the company is aligning its global operations in line with India. The move might also foster quicker product introduction in the Indian market.

 

However, numerous analysts predicted that the discontinuation of the lower priced iPhones might allow other rivals such as Samsung and prominent smartphone brands in the country.

According to them, the move to exit the sub Rs 20,000 segment will lead to a significant increase in market share of rival companies. Interestingly, there have been many reports that pointed out that the company might launch another ‘mid-ranged’ iPhone 5se to fill the void, which would be priced moderately less in comparison to the latest iPhones.

In India, the budget-friendly premium smartphone segment is growing incessantly, and will grow even more with companies like LeEco brining in flagship-like handsets at ultra-affordable prices.

 

Currently, Apple is desperately looking to further expand its India operations and will definitely come up with news ways to retain their stronghold in the market. If recent reports are to be believed, the company is all set to open a new innovation centre in Hyderabad to augment India operations.

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