Apple to Launch Cheap iPhone 5C to Increase Sales

The 8GB model of the iPhone 5C will be launched by Apple Inc. in India in early June for the primary purpose of increasing its sales volume and also give its average selling price (ASP) a solid boost. Nearly a month ago, Apple launched cheap iPhone 5C in China and Europe and now it will be launched in India, even though it is yet to hire the store shelves in the United States. Apple believes that this model will help the company in gaining market share in the smartphone segment of RS 30,000 to RS 40,000, which is currently being dominated by Sony and Samsung.

The most likely price of this cheaper version will fall somewhere in the range of RS 35,000 to RS 37,000 and will be reduced to about RS 30,000 with a buyback offer. This information was provided by four individuals who are the local trade partners of the iPhone maker. This means that with a buyback offer, this model would be cheaper about RS 2000 as compared to the 16 GB version. Not only does the Cupertino-California company wish to gain market share in the country, it also wants to increase the average selling price of its iPhone in India.

This is due to the fact that the increased sales of entry-level models such as the iPhone 4 and iPhone 4s in India had reduced the ASP and had led to a cascading impact on the worldwide financials as well. There was a major decline in the ASP in the last quarter so the company has already chosen to withdrawn the iPhone 4 from India, which was four-year-old, even though the company had re-launched it in the country in January of this year. It is expected that volumes will rise because of the new model as retailers said that the sales of the company’s smartphones saw a 10 to 15% decline in March and April because the market is slowing down.

One of the local trade partners of the company said that the iPhone 5C would likely to do well in the country because most consumers will be willing to make a compromise in storage memory if a good deal is being offered to them. However, Apple’s spokesperson did not give any comments regarding this matter. The 8GB model of the iPhone 5C 16 GB model was first rolled out by Apple in mid-March in limited markets including Germany, France, Australia, UK and China after the existing portfolio of the iPhone 5C had seen a tepid response.

The idea behind the phone was to encourage more sales by offering the phone at a low price point. Nonetheless, two weeks ago, the company decided to introduce it into other territories as well including Poland, Denmark, Netherlands, Sweden, Spain, Italy, Ireland and Belgium. According to the latest statistics that have been accumulated, the share of Apple Inc. in the Indian smartphone market is about 2.4%. Samsung has the highest market share that totals to 38.9% while some local companies also have a share.