due to the high price of the iPhone, apple opened up new market barriers. Therefore it devised a new strategy, and has produced results in India market. The strategy is carrying out the old iPhone, let the indians to buy both excellent equipment to process, and make enough face in front of all the relatives and friends.
in India, we can not only buy the release of the iPhone 4 in June 2010, the United States, also can buy iPhone 4 s listed in October 2011.
to switch from the Nexus 4 to the 4 s the 42-year-old vice President of a digital media company Punit Mathur, said: “you can use the iPhone to flaunt oneself, but can’t show off in the Android.” Cost 53500 roubles ($874), he thought, the iPhone 5 s too expensive, “buying a cheaper iPhone 4 s is a good choice.”
apple sales doubled in India market, growth is fast than China and the United States market, reduced with samsung, India domestic producers Micromax and Karbonn gap. Two-thirds of the population in India, cost less than $2 a day, this strategy is critical to the success of apple in India, also may become the development of a template for other emerging markets.
“once apple completely implement this model in India, it will also be used in other markets,” north Carolina strategy analyst Ken Hyers said, “especially as Brazil, Russia, Indonesia and other big emerging markets, they all want to share in the market.”
London sales enterprise Mediacells CEO Brad Rees, points out that apple with Indian strategy based on market, this year is expected to sell 225 million smartphones. Investigators said Canalys, apple as India’s fifth largest handset sales business, it sold 325000 iphones in the first quarter, this is the same period last year sales more than doubled.
climax of Indian market competition. Set up four years of millet company in China to sell cheap mobile phones, sales more than apple, it for the price of 13999 roubles ($228.7) on Flipkart.com to sell Mi3 mobile phones. In three separate limited network transactions, 35000 mobile phones were snapped up.
in the past, apple with brand rather than price to attract consumers. Part of his success is the result of operators, however, they offer discounted equipment, allowing consumers by instalment to buy mobile phones for years.
new Delhi Forrester research analyst Katyayan Gupta said: “apple understand India is particularly sensitive to the price. India people like to show off status, so they choose to apple. Even with two years of mobile phone also doesn’t matter, as long as it is apple.”
unlocked, no contract, 16 gb iPhone 5 s on apple’s website to sell $649 in the United States, and to agree with 2 years contract user, Verizon Wireless for the same device offers only a third of the $649; China mobile company for these users provide rebates per month.
China mobile is the world’s most users telecoms firms, it is the April release information, will reduce its profits from quarter to quarter again subsidies iPhone and build web sites. Japan’s biggest wireless operator NTT Docomo company in September for the first time to use the iPhone to attract users, but did not achieve the expected full-year profit in March.
apple spokeswoman Bethan — who Lloyd refused to comment on the company’s sales strategy in India.
Indian operators have always does not carry on new subsidies, because most users do not sign a contract for years. India’s mobile operators association general manager Rajan Matthews points out that the reason is that cannot be learned that if people keep promise whether or execution of the contract.
Matthews points out that most of the Indian consumers from retail stores rather than the operators with a prepaid card to buy mobile phones. An average of two dollars per person per month earnings wireless carriers, it is Indian operators don’t like in the United States subsidies phone for another reason.
Matthews says: “at this rate to become profitable within two years, it’s too difficult.”
Bharti Airtel, India’s biggest operator, is the only one to sell the iPhone in the top three operators. Company spokesman Ashutosh Sharma, refused to comment on the sales of apple.
Singapore Canalys analyst Jessica Kwee, said the iPhone 4 has been stationed in India in May.
in southern India UniverCell electronics retail chains, the founder of South India said that he received the iPhone 4 January production orders. He said: “this is not a junk.”
42, Suresh Subbian in June for the price of 19500 roubles ($318.78) for his wife bought a iPhone 4.
“we don’t want to risk buy new phones.” He told us by telephone in chennai, “I’d like to buy her a simple mobile phone, important is I only spent 5 s half of the money.”
Kwee pointed out that apple is India’s attempt to push the performance of different practices.
“but the main reason is apple is trying to sell old phone is cheaper in India.” She said.
Kwee, points out that because of the old phone drive prices, for an average of $450 of India’s iPhone. With the iPhone in contrast average price of $600 to $700.
this strategy to attract users to apple’s website to buy application, music and movies, of course, also can buy iPhne 4 s.
according to Hyers strategy analysis, apple’s strategy seems to include launch iPhone refurbished machines imported from mature markets.
“our ability to retain the customer is very strong, to buy apple product family show other products ability is very strong.” Apple CEO Tim Cook on the earnings call on April 23, said, “if we can apply it to the entry-level iPhone, it will produce great valuable products, and bring them into the sales ecosystem.”
IDC7 month said in a statement, apple in Brazil, Russia, India and China in the second quarter sales success, this marks the company a foothold in emerging markets.
India some stores to use a credit card to buy the iPhone offer installment plan and achieve success.
India moving retail chain store group CEO Himanshu Chakrawarti a year ago, played a full page AD in the major cities, promote the iPhone’s installment plan.
“in India, you have to pay all the upfront costs.” Forrester Gupta said, “not many people can pay $800 to buy a mobile phone. The money can buy a notebook. But as long as 24 months to pay off $800, the phone will be able to sell.”
reliance communications co., LTD., India’s fourth largest operators began in November for credit card users provide the iPhone, the user must constantly fixed monthly payments, two years to pay off. Company spokesman Rajeev Narayan declined to comment on the sales or strategy.
Mediacells Rees said, mature product lines, sales old phone will become the apple India plans. Apple plans to market, including Vietnam and Brazil, may replicate India sales model.
“apple will launch more old more market worldwide phone.” Hyers said. “it is helpful to build mental acceptance and be included in the sales of their ecological system. That is to say, the low-end buyers of apple devices when conditions permit you want to upgrade to the next generation.”