Apple to slash iPhone 4S prices amid growing Indian demand
30 Oct 2013
Apple Inc may drastically cut the price of its iPhone 4S, according to Tim Cook, chief executive of the company.
In remarks during a conference call with analysts, Cook said the price cut was in response to a surge in July-September sales of iPhones in emerging markets such like India.
The move comes amid Apple's announced withdrawal of the $400 iPhone 4 from the market.
Cook said 4S will become the entry model that will drive adoption of Apple iPhones among first-time users in emerging markets.
"As you know from comments that I've made previously, we're selling iPhone 4 in very good volumes and as we begin to experiment in different regions, at somewhat lower price points, we saw a fair amount of price elasticity and so we're hoping and thinking that, that will continue with 4S," he said in a quarterly earnings call.
This is the second consecutive quarter in which the Apple management spoke about increasing sales in India.
''We were particularly pleased with the growth in a number of developing markets, with unit sales up sharply year-over-year in Latin America, the Middle-East, Russia and India," chief financial officer Peter Oppenheimer said on the call.
Globally, iPhone sales rose 26 per cent from the year-ago quarter to 33.8 million units.
Cook didn't specify whether the 4S will be priced the same as the iPhone 4. "As you know, currency changes and the strength of the dollar (don't) play in our favour in some (geographies)... but generally we see 4S as our entry iPhone offer that gives somebody the ability to access the entire ecosystem with a fantastic product," he said. "We clearly understand that there is elasticity in that market and we will move accordingly."
Earlier this year, Apple lowered the price of iPhone 4 to Rs26,500 with a buyback offer that offered an additional Rs7,000 discount against any old smartphone, which helped Apple rapidly gain market share.
About a week ago, Apple lowered the price of iPhone 4S 16GB version to Rs34,500 from Rs38,500 and is to launch an 8GB model.
All this is in sharp contrast to a comment by the late Steve Jobs that India is not an important market for Apple.
