Making inroads inside of India is a tough task to take on. Surmounting the challenge of serving hundreds of millions of people over areas of many disparate divides definitely calls for a ground game. It’s something Apple has long lacked. And since the market for premium smartphones and smartwatches is growing like a weed, it has set up shops in the country.
Now it has to address the price component. In a country where over 373 million people live under the poverty line, a price of Rs. 44,500 ($663 as of this post) for an iPhone 5s at this stage is laughable — especially considering that Apple is selling the device for $450 at its US online store.
According to The World Bank, gross national income per capita is the equivalent of 2.36 times the price of an iPhone 5s.
Apple has decided to take prices down for the third time since September, this time to Rs. 24,999 ($373). It’s supposedly one of the lowest going prices for an iPhone 5s currently sold by Apple.
With the move, Apple hopes to snag the $250-400 price category away from Samsung and Micromax. Smartphone retailers report that the two-year-old phone accounts for half of iPhone purchases in India. Apple also hopes to make up for iPhone 6s series sales as they have fallen sharply since Diwali.
The base iPhone 6s had a launch price of Rs. 62,000 ($924).