Apple's Latest Move to Slash the iPhone 5s Pricing in India could mark an important Trend going into 2016
According to a new report by CNET, Apple isn't in the top 5 smartphone vendors in 2015. Unlike China that has a growing middle class that strongly supports Apple's higher end iPhone-6 smartphones, India's chasm between rich and poor is still a negative for Apple's brand. The report notes that Apple has now resorted to drastic measures by slashing iPhone 5s pricing in half to stimulate sales.
IDC's Kiranjeet Kaur explained that Apple's older generations of iPhones will cater to the country's large midrange smartphone market, adding that there's a "limited" amount of penetration the company can achieve by exclusively selling in the premium price segment.
Apple's iPhone 5s is reportedly now retailing for US$370 while custom smartphones designed for India and made in India by Samsung are selling for $US189 (Rs 12,709) with more appealing specifications such as offering a 5.5" display and 13 MP camera.
Apple's move to slash pricing in half for their older 5s may slightly move the needle in India in 2015 but it's the trend that may be important here. Next year when the top iPhone will be the iPhone 7, the iPhone 6 with its larger display will finally make its way into India's larger market pool where Apple will be able to compete with other bargain smartphones that are already offering larger displays.