I don't think they have even 5% market share. (http://www.theverge.com/2015/11/24/9790810/apple-iphone-indi...). For a global giant its very very poor. Hence the need to sell cheaper mobiles.
Not really, as that's not how they roll. They usually have small market share, but of the highest end / largest margin part of the market.
Those 5% can yield like 30-50% of the profits of the whole smartphone industry in India, and 80% of the high-end (more expensive) smartphone profits.
A company that only targets the high end of the market should be compared to other products/companies in that, not the overall.