Apple Cuts Price of the iPhone 5s by Almost Half in India

[MacRumors]

As it looks to find a better foothold in the Indian smartphone market, Apple today reduced the price of the bestselling iPhone 5s in the country by nearly half of what it sold for in September (via CNET).

Officially, the 2013 iPhone has been reduced from 44,500 Rupees ($665) to 24,999 Rupees ($370) in an effort by Apple to make the two-year-old smartphone more attractive to users in India, where smartphone competition is normally priced below $300.

India is currently the third biggest smartphone market in the world, following China and the United States. Although Apple has a large presence in the latter two countries, it currently doesn't even crack the top five list of smartphone manufacturers in India.

"To drive volume [in India], Apple will need to keep focus on older iPhone generations," IDC's Kiranjeet Kaur said, explaining that older generations will cater to the country's large midrange smartphone market. Kaur added that there's a "limited" amount of penetration the company can achieve by exclusively selling in the premium price segment.

Besides the premium pricing of the company's products, multiple factors have prevented Apple from having the kind of success it experiences in some other regions, including its strict real estate investment laws barring Apple from building traditional brick-and-mortar stores in the country. High import taxes applied to products not manufactured in the country's borders also hinders Apple's growth, and allows the market leader Samsung to flourish due to its India-based smartphone manufacturing plants.

Article Link: Apple Cuts Price of the iPhone 5s by Almost Half in India

 

[LovingTeddy]

I though Apple never compete on price. At least that what I have been told here, oh well, how deep has Apple fallen.

 

[Serban]

370$ for an 3 year old phone its an ok price

 

[Tejasdshah]

Time for Apple to realize the potential of Indian market. The volumes could go quite high to compensate the profits.

 

[keysofanxiety]

I though Apple never compete on price. At least that what I have been told here, oh well, how deep has Apple fallen.

The 5S is still a very capable phone. I'm not sure how halving the price for a certain market can be construed as anything but a good thing.

 

[Bhatu]

In short -- Third biggest smartphone market is happy with two-year-old smartphone -- typical Tim Cook!

 

[617aircav]

I though Apple never compete on price. At least that what I have been told here, oh well, how deep has Apple fallen.

Are you kidding. Who can sell a 3 year old phone for $600+. It was massively overpriced.

 

[LovingTeddy]

The 5S is still a very capable phone. I'm not sure how halving the price for a certain market can be construed as anything but a good thing.

iPhone 5S still selling at 599 in Canada. Should I think it is unfair for Canadian consumers laying almost doubling the price for same phone?

When Apple choose to overprice their old phpne, people say Apple never compete on price. When Apple choose to cut price for their overpriced phone, people say it is awesome. I would say 300 dollar is where iPhone 5S suppose to be. I can get Moto X Play for around that price.

 

[LovingTeddy]

Are you kidding. Who can sell a 3 year old phone for $600+. It was massively overpriced.

Apple is selling iPhone 5S here in Canada for 599.99 and yet people still buy it. It seems Apple can massively overprice their product and people still buying. You will never see this in Android world, where consumers are greatly benefited from high end product with lower price.

 

[cdmoore74]

Still to much. Would you guys pay this price for a 3 year old iPhone 5S? Who is Apple trying to fool?

 

[32KFJ]

lol apple

 

[thairish]

iPhone 5S still selling at 599 in Canada. Should I think it is unfair for Canadian consumers laying almost doubling the price for same phone?

When Apple choose to overprice their old phpne, people say Apple never compete on price. When Apple choose to cut price for their overpriced phone, people say it is awesome. I would say 300 dollar is where iPhone 5S suppose to be. I can get Moto X Play for around that price.

Economics isn't about fairness. The phone is worth whatever people will pay for it wherever it's being sold. This is a great move for them.

 

[Alex72]

Still to much. Would you guys pay this price for a 3 year old iPhone 5S? Who is Apple trying to fool?

There's no way anybody could right now, as the 5S is less than two-and-a-half years old

 

[djcerla]

I though Apple never compete on price. At least that what I have been told here, oh well, how deep has Apple fallen.

More like how Macrumors commenters have fallen.

Apple still have a healty margin at that price, and the India nut has to be cracked.

 

[nick42983]

Economics isn't about fairness. The phone is worth whatever people will pay for it wherever it's being sold. This is a great move for them.

You're right. Canadian consumers should buy their iPhone 5S from Indian resellers, who will profit from a markup while discounting from the Canadian price.

 

[doctor-don]

Too bad there were no discounts when I bought the 6s.

 

[djnigelchung]

Still to much. Would you guys pay this price for a 3 year old iPhone 5S? Who is Apple trying to fool?

Agreed.. especially when 300$ to Indians is worth alot more than 300$ to other countries!

 

[Mad Mac Maniac]

Why do I get the feeling that this is also a bit of an experiment from Apple. If successful, we can maybe expect to see more countries beginning to follow suit with dropping the price on the 3y/o model.

I do think Apple should do this across the board. When the price is "Free on contract!" it may work, but it makes zero sense to buy such an old phone for $600... Can't imagine they sell too many of them this way, and I certainly can't recommend it to anyone.

 

[thewap]

India's average per capita income per year is $1,250. just sayin'..

 

[BBCWatcher]

Dropping the price on the iPhone 5s in this market might be an indication that an iPhone 6c will debut soon. As I recall Apple tried some pricing "experiments" with the iPhone 4s and (subsequently) 5c in the Indian market, too.

To elaborate, the iPhone 5s's price outside India now looks like it's a minimum 35% higher. That pricing gap will be enough to generate a gray market of some size. I don't think Apple would let such a gap persist for very long, so I suspect Apple will just drop the 5s from their lineup in most other markets. But I don't think Apple is going to abandon the 4 inch smartphone market either, so my best guess is the 6c is around the corner at a price point starting at $499.

On edit: I'm seeing "street" prices for new, sealed, unlocked iPhone 5s (16GB) breaking below 22,000 rupees (about US$330 as of December 13, 2015). So the actual price people can pay to get an iPhone 5s in India is even a bit lower than this article suggests. But even in the U.S. Walmart is selling the iPhone 5s (new, sealed) for Straight Talk at $299, and I believe they're unlocked too. So this is pretty typical of Apple to "quietly" sell older models at more aggressive price points.

 

[Mac Fly (film)]

And they cut it to €519 in Europe

Was €499

 

[LovingTeddy]

Economics isn't about fairness. The phone is worth whatever people will pay for it wherever it's being sold. This is a great move for them.

You know what elese can consumers can do? They can choose buy other not overpriced phone or they could choose to import iPhone 5S from India. Do you think these will do any good for Apple?

What do you think when consumers know Apple priced same phone significantly low on other market? Would you think consume would happy about that?

 

[Gasu E.]

Time for Apple to realize the potential of Indian market. The volumes could go quite high to compensate the profits.

India has ENORMOUS potential, which will be unleashed as soon as its economic and governmental systems are reformed, and it addresses its infrastructure deficiencies. I predict India will be THE global economic driver of the 23rd century!

 

[LovingTeddy]

More like how Macrumors commenters have fallen.

Apple still have a healty margin at that price, and the India nut has to be cracked.

You mean Apple is as greedy or even more greedy as before? iPhone is still overpriced, especially for 2 years old phone. I can buy first gen Moto X and flash CM 13, still runs better than iPhone 5S and it is significantly cheaper.

 

[KPOM]

Still to much. Would you guys pay this price for a 3 year old iPhone 5S? Who is Apple trying to fool?

$370 unsubsidized isn't bad. It is $450 in the US. Note that the Indian market is very peculiar. They slap heavy tariffs in a misguided attempt to encourage businesses to move operations there.

My guess is that Apple either found some way around the tariffs or is deciding to eat the costs to build a market presence. Given that Apple rarely discounts heavily I'm guessing it's at least partly the former.