Wednesday, May 18, 2016

reduces iPhone margin in India in run-up to launch of 5C

Even though India is home to 1.24 billion people and is part of the emerging BRIC markets, high import taxes and a of other factors have contributed to often too high prices of consumer electronics products such as smart. The off-contract iPhone 4S which costs $450 in the United States, for example, used to be desperately out of the rch for most of that nation’s consumers.Rlizing its mistake, has twked its pricing tactics in the country andstarted offering installment plansand other benefits.According to a new report, the iPhone maker also decided to t into its high iPhone margin in order to preserve the current iPhone pricing in India whers has chosen to raise prices due toIndian rupee’s unprecedented plunge…According toBloomberg: has refrained from following Electronics Co in raising prices. is selling the iPhone and iPad to distributors such as Redington India Ltd. (REDI) at the same price as in 2012 even after the currency’s decline this yr, Rajesh Khetarpal, hd of Redington’s strategic business unit, said in an interview.Of course, has lots of margin to work with.With two to three times higher handset margin than its competitors, small wonder the company was able toabsorb a notable fourteen percent hit in the value of the rupee.An IDC analyst told Bloomberg:Even though ’s margins in India may be adversely affected, volumes are low and this strategy could pay off if stable prices lure new buyers. This could be a wise move in India, especially if competitors incrse prices.This is much welcomed news for ’s fans in India, especially knowing has locked itself in aprice warwith bitter rival .iStore India, an reseller, currently sells the off-contract 16GB iPhone 5 for 45,500 rupees, or approximately $709.By comparison the Galaxy S4 costs 41,500 rupees, or about $645, according to ’s local website.IDC estimates that the average selling price for smart in India will fall below $200 by the end of 2013.In order to boost sales in the country, rlier this yr started offeringinterest-free credit dlsthrough its distributors andstudent discounts, whichhelpedtriple salesand incrse the company’s minusculemarket share by 400 percent.Currently, lds the smartphone market in India, followed byMicromax, , and .The iPhone maker sits at the sixth place.India is important because it is part of the BRIC bloc (Brazil, Russia, India and China).These countries areexpected to overtake the United Statesas the world’s top smartphone markets by 2018. According to IDC, India willreplace the U.S. as the second-biggest smartphone market by 2017.Later today, is expected to unveil the rumoredmid-range iPhone 5esigned to improve market standing in countries like India, China and other markets where carriers don’t subsidize handsets.It is estimated than more than half non-US smartphone users are on prepaid plans, so a $350-$450 device could go a long way toward expanding ’s addressable market.

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