Apple plans to launch cheaper 8GB version of iPhone 5C to shore up sales in India

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Apple decided to withdraw the four-year-old iPhone 4 from India after re-launching it in January to boost ASP, which fell the most in the last quarter.


KOLKATA: Apple will launch the iPhone 5c 8GB model in India by early June to shore up volumes and bump its average selling price (ASP). The product was first launched in Europe and China a little over a month ago and is yet to hit the shelves in the US.

The model, which Apple believes will help it gain share in the Rs 30,000-40,000 smartphone segment dominated by Samsung and Sony, is likely to be priced at around Rs 35,000-Rs 37,000 with a buyback offer that could bring this down to around Rs 30,000, according to four people who are local trade partners of the Cupertino-based company. That would make it about Rs 2,000 cheaper than the 16GB version with a buyback offer.

Apart from gaining market share, the latest move from Apple is also aimed at increasing its ASP in India, which is among the lowest due to the higher sales of entry-level models such as the iPhone 4 and 4S leading to a cascading effect on global financials. 

“Apple’s iPhone5c 8GB model is likely to do well in India, since most consumers in India do not care much about the storage memory if there is a good price and deal,” said one of the persons cited above. An email sent to the Apple spokesperson at regional headquarters in London did not elicit any response as of press time. 

Apple first rolled out the iPhone 5c 8GB model mid-March in selected markets such as the UK, France, Germany, Australia and China after a tepid response to the existing iPhone 5c portfolio, which started at 16GB, the idea being to encourage more purchases with a lower price point. Two weeks ago, the model was introduced in territories such as the Netherlands, Italy, Belgium, Sweden, Poland, Ireland, Spain, Denmark, Swit-Apple’s iPhone portfolio currently comprises the iPhone 4s (8GB) at Rs 31,5 ..

According to market tracker CyberMedia Research, Apple’s volume share of the Indian smartphone market in the January-March 2014 quarter was 2.4 per cent. Samsung led the segment with a 38.9 per cent share, followed by Micromax at 19.1 per cent, Karbonn at 6.9 per cent, Lava at 6.1 per cent and Nokia at 5.3 per cent.


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