New pricing tactics is working: iPhone sales in India surge 400 percent

By , May 31, 2013

Samsung Apple India (The Next Web 001)

India has become Apple’s test bed for emerging markets, with the company rolling out a series of discounts and payment plans in order to entice purchases and improve its market standing in the 1.24 billion people market.

These efforts are paying off as iPhone sales have risen 400 percent over the past four months.

That’s a dramatic increase over prior iPhone numbers in India, where sales only reached a meager 70,000 to 80,000 handsets a month. The key to such a notable jump: Apple has “figured out” the Indian market, which until now has viewed the iPhone as out of the reach of most of that nation’s consumers…

India’s Economic Times writes:

The Cupertino-based company has managed to dramatically push up its sales by figuring out trends of consumer demand and changing the iPhone’s perception from being a high-end product to an affordable one.

Apple’s iPhone now has around three percent of India’s smartphone market, estimates investment firm Credit Suisse. Among the tactics Apple employed in enticing a market accustomed to purchasing inexpensive feature phones: heightened advertising, time payment plans and handset discounts.

An installment plan allows India consumers to purchase an iPhone 4 or iPhone 4S using a down payment then paying the rest over the next six or twelve months, similar to T-Mobile’s Uncarrier strategy with the iPhone 5.

And in April, Apple announced an 18 percent discount on the iPhone 4, creating an “effective discount of 23 to 27 percent, making the handset more attractive for first-time smartphone buyers,”  writes AppleInsider.

Earlier this month, the company also unveiled rebates on trade-ins. For instance, students could get a $134 rebate off some iPhones.

Today’s Credit Suisse report echos a February IDC announcement estimating Apple sales to India shot up by 400 percent.

The bigger question to ask is whether these new sales tactics are a sign of things to come from Tim Cook’s Apple or is the company merely responding to the onslaught of Android cheapos.

Whatever the case, the results prove that price is the key factor in emerging markets such as Brazil, India and China, where the firm is widely rumored to launch a less-pricey iPhone model.

  • Share:
  • Follow:
  • Kurt

    Here iPhone 5 began selling for free since Dec. They should try that too. It hasn’t worked here, but I bet it would work in India and some other countries.

    • Dan

      I’ve seen iPhone 5 the for 49$, although with 3 years contracts price isn’t really an issue in Canada

      • Kurt

        3 years??? Whoa

      • Dan

        Yeah apparently people are trying to push for a change to 2 years.

        I’ve never had trouble negociating an upgrade after 1-1.5 years though. I just tell the phone company I’ll pay the remaining 300$ on my phone, sell it, and go to another provider.

        They usually credit the remaining balance if you upgrade and renew the contract lol.

      • Kurt

        That’s clever. I don’t like the idea of having a phone for 2 years. But here in Korea thats how its done. They don’t let people upgrade early. But a few months ago my cell company asked if i wanted to upgrade early, 8 or 9 months early and to a free iphone 5. I laughed and said no.

        Hopefully you guys get it changed to 2 years. 3 years is pretty ridiculous. But at least you get around it :)

      • Falk M.

        Canada getting shafted like always… Oh boy…

      • Dan

        Haha so true… wait… :(

    • mrloko

      Lol buy one..get it unlocked and give it to me..hehehe

      • Kurt

        If you pay the shipping then Ill ship it out to you. :-p

      • Falk M.

        I pay shipping and pay for a sixpack of beer. haha

    • yuvraj

      It won’t work here. In India you buy the phone fully by paying the full buyout price and buying a sim-card from a carrier of your choice. If Apple gave iPhones for free, there will be aftermarket overnight where people would get iPhones for free, unlock it and sell it. The legal system isn’t strong enough to enforce something like that, yet.

  • n0ahcruz3

    So why built a cheaper iphone when they can just sell the older ones for less. They should price the older iphones (eg. 4/4S) in par with nokia lumia 5XX and some cheap androids. Thats win for apple.

    • Ricky

      The iphone 4 is very slugish like who want to use it anymore? Cheaper iphone is the solution to win the market in india. With this report i think that the cheap iphone will hit the market in developing countries however not in a big rich country like the U.S

      • n0ahcruz3

        Its suppose to be affordable. Cheaper iphone = low cost materials, plastic casing, older processor, low res display(ipad mini). And they might not even include some software features like siri. Or worst no camera lol like what they did with low cost ipod touch. I would rather buy the iphone 4/4S.

      • Ricky

        The cheap iphone should have retina display,camera A5 chip but just made of plastic but people who are in developing country will chose it coz its the “latest” phone so they didnt care much

      • n0ahcruz3

        Well you have point. I just hope they give it a retina display.

      • Guest

        actually iPhone 4 is not not that bad.

      • Akshay Waitforit Doiphode

        actually iPhone 4 is not that bad.

    • http://www.facebook.com/mykelxmonroe Mykel Monroe

      I see your point… And for a while I agreed. BUT we are talking about Apple here. They are marketing spiritual gurus. They win by always having something new. And people react in always wanting something new.

      That plan may work here in the U.S., but I fear that most people do not want something old that may be cheaper. They want something new so people around them will know it’s new.

      It’s all about beating others. That may sound disgusting but I fear it’s true. And it works. Wonders.

  • Boss

    Can get a 64GB iPhone 5 for free here in the UK for £27 / $40 a month with unlimited mins / unlimited texts / Unlimited data.

    • Kurt

      nice plans

    • Adrian C

      A 64gb iPhone 5 for free? Where’s that? Defo not Carphone Warehouse or Phones4U :s

    • mrloko

      Lol buy one and give it to me.. I will pay you 27£ n will unlock it..lmao

    • yuvraj

      That’s a great deal!

  • Gorgonphone

    yeah um duh apples only obstacle to more sales is high prices