Apple is betting on old iPhones to gain market share in India

Apple iPhone 5S, a model that was released in 2013, is still immensely popular in India, and Apple seems to have realised the potential its popularity has in the country, and is looking forward to cash in the reputation.

Apple has been unable to get much share in the Indian smartphone industry, thanks to cheaper rivals with similar or better specifications like Micromax, Xiaomi, Oppo, and Gionee.

In the first quarter of this fiscal, Apple managed just 3% of the share in the country’s smartphone market. Willing to do better, it’s now letting stores and online retailers like Amazon and Flipkart bring down the prices for its older models, so that price-conscious customers can happily own an iPhone.

Older phones accounted for almost 55% of the 2.6 million devices that Apple had shipped to India last year, says Counterpoint Research, to be sold by online retailers and brick and mortar stores, as per Bloomberg .

iPhone 5S was sold for Rs 15,999 at Amazon during its great Indian sale in May.

"We're very optimistic about our future in this remarkable country, with its very large, young, and tech-savvy population, fast-growing economy, and improving 4G network infrastructure," Chief Executive Officer Tim Cook had said on an earnings call that Apple held in May.

Retailers have been trying to lure customers towards iPhones by offering discounts, as well as cash-back offers, product exchanges, and monthly payment plans.

This has also prompted Chinese players to slash their prices in India.

If Apple begins manufacturing phones in India, it would be able to further slash iPhone prices, for which it is in talks with the Indian government.