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Apple is Betting on Old iPhones to Gain Market Share in India

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Apple is Betting on Old iPhones to Gain Market Share in India

In India iPhones are struggling with cheaper competitors which have almost same specifications. These rivals include Micromax InformaticsXiaomi, Oppo Electronics, and Gionee Communication Equipment. Due to this Apple was only able to sell 3 percent of smartphones in India. Apple is Betting on Old iPhones to Gain Market Share in India. To cope this issue Apple is making retro models at great concessions.

Also Read: Apple to Start Manufacturing iPhone SE Handsets in India

Apple retaining it’s image has asked stores and online retailers  such as Amazon.com Inc. and Flipkart Ltd. to sale old models at slash prices. A business professor just bought 5S for $300 which Apple sells at $400 in US without taxes.

Apple is Betting on Old iPhones to Gain Market Share in India

According to Counterpoint Research Apple’s older phones accounted for 55% of 2.6 million devices that were shipped in India in 2016. However Apple’s official website for India only lists iPhone 6S and SE for entry level buyers. Other retailers also has iPhone 6 and 5. The 5S was listed at 15,999 rupees during an Amazon sale in May. It shows Apple’s huge interest in Indian market which is due to high population of the country.

Indian officials had disapproved Apple’s request for special concession in order to assemble iPhones in India. Right now the government is looking over to it’s overall policy to motivate Apple’s “Made In India initiative” to attract foreign investors.

Apple could lower more prices if it manufacture iPhones in India. However for this it has to bypass import duties. The tech giant Apple has built small factory in Bangalore operator by Wistron Corp. Apple should start making individual phone components in India to meet government requirements for local manufacturing.

Also Read: Made in India Initiative Gets Major Setback-iPhone Manufacturing