Apple Adopts New Strategy for Sales in India

By: Zain Nabi  |   February 25th, 2013   |   Apple, Smartphones

Apple has reportedly adopted a new strategy to promote its products in India after it was observed that iPhone 5 had been available for grab on an instalment plan, according to Reuters.

 

Apple, which is well known for targeting high-end consumers, has changed its strategy of late, giving indications that it might explore new markets that could increase its number of users. However, the main problem for Apple remains the cost of its products. The markets where Apple could have secured dominance are dominated by other smartphone manufacturers, especially Samsung, because they offer better and cheaper rates.

 

Nevertheless, the trend seems to be changing now and Apple chief Tim Cook has also said a number of times that the company would explore new markets. India is one of the biggest smartphone markets as far as number of users is concerned, but these users prefer phones at cheaper rates. We have been receiving reports that Apple would introduce a budget phone this year to capture markets of the developing countries, but the company has not confirmed this report. But if it comes out with a budget phone it could go on to secure huge profits.

 

As far as the recent move to offer its products on instalment is concerned, Apple has not reduced the prices, but the company has somewhat targeted the consumers who would normally not prefer this brand because of high prices. Since the consumers will initially not have to pay the entire amount to buy an iPhone they might get inclined towards buying it. Still, it can be seen as a strategic move from Apple’s part, which goes to show that the company could come up with something more, even better, to offer for the developing countries.

 

In India, Samsung’s smartphones are very popular and although Apple as a brand is also very popular, its market penetration is pretty lower as compared to Samsung. Apple can give a tough time to its rival in the Indian market as well if it comes out with a budget phone. Meanwhile, Apple could also prove to be a tough competitor for BlackBerry that has recently launched its new Z10 smartphone in India. The Canadian-based smartphone manufacturer is gradually reaching many big markets but everywhere it is facing a stiff competition.