Apple's iPhone sales reportedly up 400% in India thanks to aggressive pricing strategies

Posted:
in iPhone edited January 2014
The institution of installment payment plans and deep discounts in India has netted Apple up to a fourfold boost in iPhone sales over the past four months, said investment firm Credit Suisse, with the company moving nearly 400,000 handsets each month.

India


According to analyst Sunil Tirumalai, Apple's equal monthly installment (EMI) and cash-back programs have jump-started sales in India, which used to be around 70,000 to 80,000 units per month before the aggressive pricing schemes, reports India's Economic Times.

As a burgeoning market, India's smartphone sector has traditionally been dominated by low-cost feature phones, while high-end products like Apple's iPhone were out of reach for a majority of consumers. The latest estimates suggest the iPhone now accounts for nearly three percent of the entire Indian market.

Apple's "aggressive approach" to iPhone sales in the world's second most-populous nation includes extensive advertising, but more importantly an interest-free EMI initiative that allows buyers to put down a partial payment on an iPhone 4 or 4S and pay the remainder over the next 6 to 12 months.

"The 4-9% implicit discount coupled with the option of easy EMIs spread over 6-12 months became popular," Tirumalai said. "Within a few months, our discussions with handset retailers indicated that iPhone sales went up 3-4x, forcing companies to respond."

In April, Apple added an 18 percent cash discount to the iPhone 4 deal, effectively nullifying the partial down payment. According to the publication, this resulted in an effective discount of 23 to 27 percent, making the handset more attractive for first-time smartphone buyers.

Credit Suisse's report, which based its numbers on mobile device retailers and distributors, is in line with preliminary IDC estimates from February, which noted an identical 400-percent increase in sales.

As part of its push, Apple began offering trade-in rebates earlier in May, with students getting 7,777 rupees (about $134) off certain iPhone models.
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Comments

  • Reply 1 of 54
    Up in Indian??? Gotta proofread the headlines.
  • Reply 2 of 54
    anantksundaramanantksundaram Posts: 18,688member
    Wait. Isn't this the exact same headline and story from a few months ago?

    Add: The phone looks cool. I'd buy one of those.
  • Reply 3 of 54
    robin huberrobin huber Posts: 3,198member
    Here's an idea. Let savvy young people work off the price of the phone by creating apps tailored to the Indian market.
  • Reply 4 of 54
    solipsismxsolipsismx Posts: 19,566member
    I thought I read recently (within the last couple weeks or so) that Samsung's shipments are way up in India, too.

    Here's an idea. Let savvy young people work off the price of the phone by creating apps tailored to the Indian market.

    Another idea: Create a factory in India so they can create Apple Stores in the big cities thus cutting out the multi-teir distribution system and lack of support that tech usually gets in India. I think the population that can buy will be in these larger cities and think it's likely more sufficient for the effort even if just a tiny portion of the population. Long term I think this could give Apple a presence in India that would make it appealing the way it is in China once the a strong middle class starts to really grow. Note: This is all a hypothesis. If this is in any way possible and viable for Apple I'm certain they would have conceived, researched and documented it long ago.
  • Reply 5 of 54
    souliisoulsouliisoul Posts: 827member


    HI All,


     


    As stated before Apple has to be aggressive in their pricing, since Indians LOVE Apple, but will not spend the 'western' prices to buy unless there is an incentative. Also you have so many cheap 'HIGH END smartphones' that may not give same quality of functionality as Apple (not talking Samsung or HTC, BB etc.), but locally manufactured and allow the 'middle class' to spent less and still feel like the person has a HIGH END smartphone, e.g http://www.micromaxinfo.com/mobiles/smartphones/canvas


     


    I would be very happy, If Apple open a store and of course the first would be in Mumbai ( not capital), but 40% revenue in India comes from this city.

  • Reply 6 of 54
    hmmhmm Posts: 3,405member

    Quote:

    Originally Posted by Robin Huber View Post



    Here's an idea. Let savvy young people work off the price of the phone by creating apps tailored to the Indian market.


    Indentured developer servitude? That seems a little extreme. How do you even measure the value? By app sales?

  • Reply 7 of 54
    spacepowerspacepower Posts: 208member
    Hmm this sounds like Apple using its offshore money to act like a bank or financier. Maybe overseas money should stay overseas? Apple is doing the same in China.
  • Reply 8 of 54
    spaceraysspacerays Posts: 116member

    Quote:

    Originally Posted by souliisoul View Post


    HI All,


     


    As stated before Apple has to be aggressive in their pricing, since Indians LOVE Apple, but will not spend the 'western' prices to buy unless there is an incentative. Also you have so many cheap 'HIGH END smartphones' that may not give same quality of functionality as Apple (not talking Samsung or HTC, BB etc.), but locally manufactured and allow the 'middle class' to spent less and still feel like the person has a HIGH END smartphone, e.g http://www.micromaxinfo.com/mobiles/smartphones/canvas


     


    I would be very happy, If Apple open a store and of course the first would be in Mumbai ( not capital), but 40% revenue in India comes from this city.





    iPhone 5 price before all these 'incentives' = Rs 45,500 = $ 810+

    No American will buy this phone, forget Indians, at this rate.



    Americans have a far bigger 'incentive system' with their monthly pay contracts, which eventually sum up to a huge price in the end.



    I am from Mumbai. Am an iOS App Developer in a startup. And I still use a Nokia X2-01 qwerty phone personally. I dont need a 'high-end' smartphone, forget even a smartphone. Any decent phone is enough once it satisfies one's needs.



    Apple iPhones are still a status symbol rather than a utility buy in India, sadly.

  • Reply 9 of 54
    saadmubsaadmub Posts: 1member
    Sadly. Neighboring Pakistan(5th largest population) is still being ignored. [B]Doesn't even have an iPhone available [/B] (officially launched). iPhone has been in the mobile business since 2007, I see reports every month on how good Apple is in their Supply Chain Management and is committed to excel in being a global brand giving the legacy competitors a hard time. Why has the Pakistani market still being ignored?!
  • Reply 10 of 54
    MacProMacPro Posts: 17,575member
    saadmub wrote: »
    Sadly. Neighboring Pakistan(5th largest population) is still being ignored. Doesn't even have an iPhone available (officially launched). iPhone has been in the mobile business since 2007, I see reports every month on how good Apple is in their Supply Chain Management and is committed to excel in being a global brand giving the legacy competitors a hard time. Why has the Pakistani market still being ignored?!

    Hopefully no one will crack a joke like , 'maybe they'd interfere with the drones...' nah, nobody would make such a bad joke here on AI.
  • Reply 11 of 54
    dick applebaumdick applebaum Posts: 12,471member
    saadmub wrote: »
    Sadly. Neighboring Pakistan(5th largest population) is still being ignored. Doesn't even have an iPhone available (officially launched). iPhone has been in the mobile business since 2007, I see reports every month on how good Apple is in their Supply Chain Management and is committed to excel in being a global brand giving the legacy competitors a hard time. Why has the Pakistani market still being ignored?!

    Hopefully no one will crack a joke like , 'maybe they'd interfere with the drones...' nah, nobody would make such a bad joke here on AI.

    It is an interesting question though…

    In general terms -- What should Apple, or any American company do to invest * in, or make their products available in countries that are not too friendly to the United States?

    * product sales/distribution, infrastructure, stores, factories

    More specifically -- How would investment in Pakistan affect relationships with neighboring India (or vice versa)?

    I suspect that whoever wins the Turkish education Fatih project bid will build factories in Turkey as part of the deal. US companies in the running for this bid are Apple Google and Microsoft…

    Would be good questions for Tim Cook -- or even President Obama!

    "World peace through world trade"
  • Reply 12 of 54
    dick applebaumdick applebaum Posts: 12,471member
    Duplicate.. AI's fault
  • Reply 13 of 54
    dick applebaumdick applebaum Posts: 12,471member
    Duplicate.. AI's fault
  • Reply 14 of 54
    dick applebaumdick applebaum Posts: 12,471member
    Duplicate.. AI's fault
  • Reply 15 of 54
    dick applebaumdick applebaum Posts: 12,471member
    Duplicate.. AI's fault
  • Reply 16 of 54
    dick applebaumdick applebaum Posts: 12,471member
    Duplicate.. AI's fault
  • Reply 17 of 54
    dick applebaumdick applebaum Posts: 12,471member
    Duplicate.. AI's fault
  • Reply 18 of 54
    dick applebaumdick applebaum Posts: 12,471member
    Duplicate.. AI's fault
  • Reply 19 of 54
    dick applebaumdick applebaum Posts: 12,471member
    Duplicate.. AI's fault
  • Reply 20 of 54
    gatorguygatorguy Posts: 19,275member
    Duplicate.. AI's fault

    BS. . . You're just bumping your post count, plain as day.

    :D
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