Reference Auto

And, playing this volumes game would do a world of good to Apple as it is likely to rev up earnings in a country where many dream of owning the coveted iPhone but do not have the means to do so.

With the global cellphone (especially smartphone) market getting fiercely competitive and prices plummeting like never before, US-based Apple’s previous launch, the iPhone 4, was witnessing dwindling sales, and with this novel idea, the American electronics giant probably hopes to penetrate into not only the Indian middle class segment but other emerging markets as well.

The decision of slashing the iPhone 4 price also stems from the huge response Apple got for its recently rolled out handsets, namely the iPhone 5C and 5S. 

When these handsets were launched during the festive season, various installment schemes with these phones saw an unprecedented and astronomical response.

So, in order to boost the sales of its older handset, Apple has probably understood the Indian customer and pruned the price of its iPhone 4.

The country’s market is now switching from the keypad-type handsets to the smartphone, even though the price is a big factor today. For instance, local brands like Micromax and Karbonn are selling their hand pieces for a steal and are witnessing roaring sales.

The 16 GB iPhone 5S was recently rolled out in the country during Diwali for Rs 53,500, and for people in developing countries, it is obviously beyond their reach. Even the iPhone 5C, priced at Rs 42,000, proved to be costly but a slew of installment plans have made these two phones somewhat attractive.

In developed countries like the US and those in Europe, the iPhone 4’s sales have been heading south after the latest versions of Apple’s phones were rolled out. So, with this measure (of promoting the iPhone 4), Apple will keep the handset’s sales ticking.

Apple’s new iPhone 4 price plan could be rolled out by the end of this month. And, if it does, it could create a dent on other handset makers like Samsung, LG, Sony and Motorola as well as local brands like Karbonn, Lava and Micromax with this game-changing strategy.