Apple Inc. (NASDAQ:AAPL)’s iPhone 5c will soon be available in India, probably by June starting, in a new 8GB version. This move has been taken by the company to increase the sales volume and also raise the Average Selling Price (ASP). The product had hit the European and Chinese markets for the first time more than a month ago and the US market is still awaiting this product.
Apple targeting mid-range market
The mid-range smartphone market i.e. the Rs. 30000-40000 ($500-$650 approx) segment of smartphone is dominated by Samsung and Sony while the iPhone has a dominant presence in Rs. 40000-60000 market. The iPhone maker is trying to gain a higher market share in this segment as well, and has reasonably priced the iPhone 5C 8GB model in the Rs. 35,000 to Rs. 37,000 range. Few local trade partners of the Cupertino based company have informed Economic Times that the company is, also, offering a buyback on this product worth Rs. 5,000-7,000 ($100-$150) that will bring the effective price of the product to Rs. 30,000 ($500 approx). The 16 GB version with the buyback offer costs around Rs. 32,000 and the 8GB version is Rs. 2,000 cheaper than that.
8GB version to boost falling ASPs
Another major objective, besides gaining higher market share, is that the company aims at increasing the ASP in India, as well. The entry level models of the iPhone such as iPhone 4 and 4s have recorded higher sales than the other expensive models in India as a result of which the company’s ASP in India is the lowest, which also negatively affects the global financials.
Apple Inc. (NASDAQ:AAPL) had re-launched its four year old iPhone 4 model, in January, in India with an intention of boosting the ASP, but to the company’s disappointment the ASP fell by large in the January to March quarter. Keeping this decline in view, the company has now decided to once again withdraw the models from the Indian market and is hopeful that this new 8GB model of iPhone 5c will help push sales volume further up. The company’s sales of smartphones decline by 10-15% from March to April.
“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 sources.