Apple axes iPhone 4s and 5c from India lineup in search of higher ASP

Posted:
in iPhone edited February 2016
After slashing the price of iPhone 5s in India last year, Apple has reportedly stopped selling entry-level iPhone 4s and iPhone 5c models in favor of a smartphone lineup more closely aligned with mature markets.




As of Wednesday local India time, Apple is no longer selling generations-old iPhone 4s and iPhone 5c models through official channels, reports The Economic Times. The company's regional website has been updated to reflect the change.

Previously, Apple's most affordable -- and most popular -- iPhone was the Rs. 12,000 (about $175) iPhone 4s, so priced to capture the emerging market's sizable low-end segment. With the change in place, iPhone 5s becomes Apple's budget handset, selling at a recently-halved average price of Rs. 24,000.

The scale shift is meant to bolster falling iPhone ASP metrics in India, according to a local trade partner. For the last quarter of 2015 Apple's ASP declined 20 percent year-over-year, the report said, citing statistics from Counterpoint Research.

India was one of the few countries where Apple competed with Android handsets on price, or at least prepared an entry-level hardware contingency to combat bargain-basement phones sold by Chinese manufacturers. The company is also thought to have continued iPhone 4s sales in Brazil and Russia for similar reasons.

Analysts familiar with the Indian market foresee iPhone 5s filling the gap left by iPhone 4s and 5c, models withdrawn long ago from major markets like the U.S. and Europe. The shift could leave breathing room for rival Samsung and smaller Chinese OEMs to gain Indian marketshare, as the Rs. 10,000-20,000 smartphone segment is one of the fastest growing sectors in the country, second only to the budget Rs. 5,000-10,000 segment.

On Tuesday, Apple confirmed plans to invest $25 million in a Hyderabad research facility that will be staffed by 150 employees working on maps solutions and local market development.

Comments

  • Reply 1 of 8
    radarthekatradarthekat Posts: 3,030moderator
    Getting ready to role out an updated 4" iPhone, Apple wants to limit the number of small screen models in every market. We'll soon hear about cessation of the 4S and 5C in additional markets where those are still for sale.  Here comes a new era of 4" iPhone updates, likely to be annually refreshed with parts from the 18-month ago flagship.  Or perhaps a two-year update cycle going forward, this year it gets the 6 internals (A8), March of 2018 gets the 7 internals (A10 and 12MP camera, etc), March of 2020 gets the 8 internals (A12, anyone?).   Good way to continue to amortize outgoing components, for as long as the strategy makes sense; as long as a market exists.
    edited February 2016 cornchip
  • Reply 2 of 8
    Apple probably ran out of A5 and A6 SoC!  It been 5 years!
    lolliverradarthekatcornchip
  • Reply 3 of 8
    calicali Posts: 3,495member
    sounds like a new 4" coming.
    lollivercornchip
  • Reply 4 of 8
    apple ][apple ][ Posts: 8,572member
    I like the 4" iPhones.

    At the moment, I'm using an iPhone 5s, and that works great for me. I like to have my iPhone in my front jeans pocket, and the 4" iPhone is a good size for that purpose.

    A friend of mine has a 6s+ and I've played around with it for a bit, and it's a great phone, but that friend of mine is a female, and she gets to carry the phone in her bag. She doesn't keep it in any pants pocket.

    So for me, I kind of like the 4" iPhones. If I need a bigger screen, well, that's what my iPads are for.
    radarthekatcornchip
  • Reply 5 of 8
    asdasdasdasd Posts: 5,282member
    This is probably a reaction to the new phones not a asp play. 
    radarthekatcornchipjony0
  • Reply 6 of 8
    wood1208wood1208 Posts: 1,930member
    Going forward Apple should make ONE of each 4",4.7" and 5.5" and get rid of rest to minimize maintenance, inventory of too many models. Refresh 4" er every two years.
  • Reply 7 of 8
    mike1mike1 Posts: 1,869member
    apple ][ said:
    I like the 4" iPhones.

    At the moment, I'm using an iPhone 5s, and that works great for me. I like to have my iPhone in my front jeans pocket, and the 4" iPhone is a good size for that purpose.

    A friend of mine has a 6s+ and I've played around with it for a bit, and it's a great phone, but that friend of mine is a female, and she gets to carry the phone in her bag. She doesn't keep it in any pants pocket.

    So for me, I kind of like the 4" iPhones. If I need a bigger screen, well, that's what my iPads are for.
    I was worried about the same thing when I went from a 5 to a 6. The 6 with an Apple leather case, although slightly larger, is thinner and actually more comfortable in the pocket of my jeans than was the 5.
  • Reply 8 of 8
    foggyhillfoggyhill Posts: 4,767member
    Or maybe they ax these phones because new ones are coming out.
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