Apple Inc likely to slash online price to expand loyalty base in India
Global technology major Apple Inc could be planning to lower the online price of its iPhone 5S handset in India, mainly to expand its loyalty base in the country, according to media reports. The sharp reduction in the iPhone 5S price – from Rs 18,000 at present – is said to be part of an exclusive online market strategy of Apple, which aims to dominate India’s mid-range smartphone market segment.
To wrest a larger share of the market in this segment from rival Android players like Samsung, Motorola, Lenovo, Oppo and Asus, the Apple iPhone 5S will have the latest version of iOS and many other flagship features like a good camera and robust battery backup – all for Rs 15,000. According to three senior industry executives quoted by the Economic Times in a report, the company’s distributors have already informed retail stores of this price cut and that the iPhone 5S would be sold shortly on the online platform at an aggressive price point. Simultaneously, the iPhone SE will start selling in India through the offline channel at a price of Rs 20,000. “The company will have a 10-12% pricing advantage for the iPhone SE once the company starts assembling it in India by next month,” an executive was quoted as saying in the ET report.
“Apple wanted to have one iPhone model with an aggressive pricing in India and was banking on company-certified refurbished models. But now that the proposal has been struck down by the government, it is betting on the iPhone 5s,” said one of the executives.
A price-cut and accessibility both online and offline, in addition to higher traction for the newer iPhone models, are expected to boost Apple’s India sales. At present, the online channel accounts for 50-55 per cent of iPhone sales in India, compared with about 30% for the larger industry. (READMORE…)