Word on the street is that Apple has plans for a budget iPhone in the works. Why a budget iPhone, you ask? Well apparently thanks to the variety of Android and Windows Phone devices out there that cater to users looking for a high-end experience, and to users who simply want a cheap smartphone, they are starting to lose a bit of ground. The budget iPhone is apparently designed to appeal to emerging markets who might want an iOS device but cannot afford it otherwise. India is one of those markets, but surprisingly a new report from India’s Economic Times has suggested that iPhone sales in the region have jumped up by 400% thanks to aggressive pricing strategies.
These strategies include trade-in rebates for students where they can get as much as $134 off certain models, as well as offering interest-free EMI initiatives where customers can put a down payment for an iPhone device and slowly repay the remainder over the period of 6-12 months. According to analyst Sunil Tirumalai, “The 4-9% implicit discount coupled with the option of easy EMIs spread over 6-12 months became popular […] Within a few months, our discussions with handset retailers indicated that iPhone sales went up 3-4x, forcing companies to respond.”
Of course this is hardly the answer, especially considering India’s population and the fact that iPhones only account for 3% of the entire Indian market, a number which we’re guessing Apple is hoping to increase with its rumored budget iPhone device. Will they be able to do it? We guess we will have to wait and see.