Where Apple Dropped the iPhone 5 Price from $840 to $93
During his visit to China, Tim Cook called the country the second most important market for Apple. The company’s strategy in Asia has been Greater China, including Taiwan and Hong Kong, where revenue grew 60% in the holiday quarter to $7.3 billion. These are great numbers, but what about India, which has a potential of 900 million mobile connections?
Despite carrying an immense potential, Apple somehow failed to pay attention to India, which, along with being the world’s second largest mobile market, became the land of Android, with Samsung retaining the top positions for the most sought-after high-end devices.
But let’s see the numbers. Samsung obviously leads the way, but market analysts say Apple has seen a tremendous growth during the past few months, selling 252,000 iPhones in the country. Seriously? A little above 250,000 in the world’s second largest mobile market? From our perspective, this doesn’t really reinforce that Apple is performing well in the country.
According to Canalys, a market research company, there will be about 26.6 million subscribers in 2013, and that number will skyrocket to reach 108 million by 2016. That’s close to the number of active mobile subscribers recorded in the US today.
The fact is that Apple is adopting new strategies in India, which could hint at its new marketing strategy in emerging countries, where carriers don’t subsidize handsets. First thing: Most people in India cannot afford a dollar-priced phone, as their salaries are in rupees. Still, the desire for high-end devices is the same.
Apple has begun to advertise its new pricing for the iPhone 5. Instead of $840 – its initial launch price – the most sought after device is now available for $93 (5,056 rupees). There are two ways to achieve this price: Either Apple has managed to convince carriers to subsidize the iPhone or carriers sell the handset in monthly installments. However, this is only until the cheaper iPhone hits the market.