Apple has reduced the price of its flagship iPhone 5S by half for Indian market.
Apple Inc. has reduced the price of its flagship iPhone 5S by half for its customer base in the Indian market, as reported by 9to5Mac. The iPhone 5S will now be sold in the Indian market for $340. This initiative has been taken by the company to popularize the penetration of Apple in the Indian market by opting for a low cost strategy. Initially the cost of an iPhone was $665, which was thought to be as extremely expensive, whereas the iPhone 6S was being sold for $950. This had made India one of the most expensive regions to purchase an iPhone from.
The tech giant has been trying its best to position itself in the Indian market since there are several local manufacturers selling their smartphones at a relatively low cost. This encompasses Samsung and Micromax that sell their products for a price below $300. As per a report published by the poplar research firm- IDC, AAPL in India is not a part of the top five spots in the Indian market since the pricing of the device is not affordable to the masses in the region.
The company needs to tweak its approach to make its Apple products popular in the region. Thus the initiative taken is actually a good step to establish its presence amongst the masses. At this point of time, the Apple iPhones are priced heftily since they are not manufactured locally and the company has to adhere to a lot of taxes and duties to ship its products in the region. So now the company is striving hard to grow since the exchange rate has made it quite difficult for the company to lure customers.
The iPhone 5S is said to be a glorified Apple product that has a strong market globally. The initiative taken actually proves that the company badly wants to make a mark in the Indian fraternity. Moreover, rumors have also been circulating that the company will soon be releasing iPhone 6c in FY16. So now the company wants to keep the price tag similar to iPhone 5S.
Apart from this, it has also been reported that Foxconn will establish a production unit in India so that the company can manufacture smartphones locally at a cheaper rate. India is following China and is considered to be the second largest smartphone market. However, the purchasing power of the masses is quite stagnant that is acting like a barrier for Apple to penetrate.
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