iPhone 5sAs 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.

Tag: India

Top Rated Comments

djcerla Avatar
109 months ago
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.
Score: 10 Votes (Like | Disagree)
keysofanxiety Avatar
109 months ago
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.
Score: 6 Votes (Like | Disagree)
thairish Avatar
109 months ago
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.
Score: 6 Votes (Like | Disagree)
Bhatu Avatar
109 months ago
In short -- Third biggest smartphone market is happy with two-year-old smartphone -- typical Tim Cook!
Score: 3 Votes (Like | Disagree)
617aircav Avatar
109 months ago
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.
Score: 3 Votes (Like | Disagree)
nick42983 Avatar
109 months ago
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.
Score: 3 Votes (Like | Disagree)

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