Why Did Apple Discontinue the iPhone 4s and 5c in India?



iPhone 5s set to be the cheapest selling Apple handset in India

According to The Economic Times, Apple (AAPL) has stopped selling entry-level iPhone 4s and iPhone 5c models in India (INDA) through official channels. The iPhone 4s was the most affordable and popular iPhone in India and was priced at $175 (or 12,000 Indian rupees) to capture the low-end segment in the country.

The iPhone 5s is now Apple’s budget phone and currently costs $350. In 2015, Apple slashed the price of the iPhone 5s by half. According to AppleInsider, Apple is “in favor of a smartphone lineup more closely aligned with mature markets.”

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Move will improve average selling price in India

This move will improve the iPhone’s falling ASP (average selling price) metrics in India. In 4Q15, Apple’s ASP fell 20% YoY (year-over-year) in India, according to Counterpoint Research. India remains a huge market for smartphone manufacturers, and it’s one of the few markets where Apple has competed with peer companies on the basis of price. Apple may also discontinue iPhone 4s sales in Brazil (EWZ) and China (FXI) in order to improve its ASP.

India is one of the fastest-growing smartphone markets. According to International Data Corporation, Samsung (SSNLF) leads the Indian market with a share of 28.6%, followed by Micromax at 14.1%. Lenovo (LNVGY) has a market share of 9.5% in India, while Apple and Xiaomi currently have market shares of 2% and 4%, respectively.


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