IPhone Outpaced in Surging India by Less Costly Rivals
Sales of Apple’s premier product are being beat in India, but not by their usual competitor Samsung. Rather, the Indian market has quickly picked up cheaper brands of local competitors. Really, it all boils down to the price of the phone and, according to Karbonn executive director Shashin Devsare, the price of data. Karbonn has offered extra data incentives if customers buy certain handsets. Another brand, Micromax Informatics, is taking the same approach as Karbonn, and offering phones at a fraction of the prices that are placed on iPhones and Galaxies.
“India will become the third-largest smartphone market by 2017, according to the Framingham, Massachusetts-based researcher IDC, after China and the U.S,” which means current global phone makers will have to readjust their plans in order to stay relevant in the emerging markets. Apple has been at the focus of the issue of price for a long time, as their stock continues to tumble midst worries that the company will not be able to hold onto such large profit margins. As the local brands in India continue to steal market share, it becomes even more apparent that the smart phone market is quickly becoming saturated, and the competition between companies is only going to intensify, especially in markets where income levels are much lower and the importance of price is much higher.