This represents a price reduction of 50% over the past year or so and might signal a change in strategy. Apple might be finally moving to tap the riches at the bottom of the pyramid and trying to gain a foothold in the fast growing smartphone market of India. As this article correctly points out, the iPhone 3GS is still a superior when compared to the low-end Android phones offered to the Indian consumer. Coupled with its ability to upgrade to IOS 6, Apple might finally have a winner.
Or this might just be another ‘inventory clearing exercise’ as Apple readies for the launch of the iPhone 5. Either way, one hopes that increased iPhone sales in India will lead to an improvement in the Apple Experience and service coverage available in India.