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  • Apple Losing Ground to 'Cheap' Phones in India


    It's no secret that India is a high-priority emerging market for Apple. But the latest industry data shows that both Apple and Samsung are losing ground - and fast - to the makers of substantially more affordable devices.

    Sales growth at Bangalore-based Karbonn Mobiles India Pvt. and Micromax Informatics Ltd. (MICRO) is being fueled by Indians buying their first smartphone to surf the Internet, which will be accessed by more than 300 million people by 2017. Their secret: the price.
    Bloomberg reported Friday that 800 million people in India live on less than $2 a day. As a result, it's easy to understand why Karbonn handsets, which cost approximately $66, are outselling Apple and Samsung handsets, which are three to six times more expensive depending on the models.

    “India is poised for a smartphone boom; just look at the Internet penetration and potential,” Deepak Mehrotra, CEO of Micromax, tells Bloomberg. “But we don’t see any point to offering a Ferrari.”

    As MMi reported at the close of 2012, Apple is now authorizing the use of payment plans to help prospective iPhone buyers more easily secure the smartphone inside of India.

    Source: Bloomberg
    This article was originally published in forum thread: Apple Losing Ground to 'Cheap' Phones in India started by Michael Essany View original post
    Comments 21 Comments
    1. runey71's Avatar
      runey71 -
      Well der... Of course they are...
    1. ellersbee's Avatar
      ellersbee -
      That's really nice of them. But what about us? Why do we get the shaft on prices?
    1. montybhai's Avatar
      montybhai -
      Indians are smarter they will wait for Chinese phones that have same and/or more features that cost 10% of the price and purchase those. Average Indians realised that apple phones were just cosmetic and not functional therefore have no need for them
    1. Norb's Avatar
      Norb -
      Indians are the only people that would walk up to a register with a cart full of 'Free After Rebate' cordless phones. They have a reputation in my book, but I doubt I'm the only one like this. Money is not the most important thing in life but they tend to live like that, so I'm not sure smart is the right word.

      Now I know not all are the same but in my retail experience, this is the impression many have left upon me.
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by Norb View Post
      Indians are the only people that would walk up to a register with a cart full of 'Free After Rebate' cordless phones. They have a reputation in my book, but I doubt I'm the only one like this. Money is not the most important thing in life but they tend to live like that, so I'm not sure smart is the right word.

      Now I know not all are the same but in my retail experience, this is the impression many have left upon me.
      Try living for $2 a day for a month (or even a week) and then I'll ask you if money is the most important thing or not.
    1. Norb's Avatar
      Norb -
      Quote Originally Posted by vinaygoel2000 View Post
      Try living for $2 a day for a month (or even a week) and then I'll ask you if money is the most important thing or not.
      Yeah, obviously people live in silicon valley make $2 a week or month. I mean at the time I was paying $470 for a small room and that was considered cheap.

      Obviously $2 a month goes a lot further in India than it does here. My grandma in Poland can buy a lot more with $2 than I can buy here... There is something called impossible and possible. If it's possible to even survive on $2 then it's obvious that the value of $2 is a lot different, you know... "Cost of living". These people were well off, but just being cheap and inconsiderate. They even asked for individual transactions because the rebate had a limit. Sorry that kind of thriftiness is disgusting and I don't care where you lived before.

      Sh1t, I was born in Poland and remember being in line with my grandma for bread while people were pushing and shoving me when I was 5 years old, I'm also no stranger to being poor as fuk.
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by Norb View Post
      Yeah, obviously people live in silicon valley make $2 a week or month. I mean at the time I was paying $470 for a small room and that was considered cheap.

      Obviously $2 a month goes a lot further in India than it does here. My grandma in Poland can buy a lot more with $2 than I can buy here... There is something called impossible and possible. If it's possible to even survive on $2 then it's obvious that the value of $2 is a lot different, you know... "Cost of living". These people were well off, but just being cheap and inconsiderate. They even asked for individual transactions because the rebate had a limit. Sorry that kind of thriftiness is disgusting and I don't care where you lived before.

      Sh1t, I was born in Poland and remember being in line with my grandma for bread while people were pushing and shoving me when I was 5 years old, I'm also no stranger to being poor as fuk.
      Did u had an iPhone or any phone back in Poland? Exactly. So people in India are buying cheap phones. That's all I'm saying. For us iPhone might be a necessity but for them it's beyond luxury. Trust me there are also rich people in India that drive Mercedes and BMWs and have iPhones. India is not all poor.
    1. Norb's Avatar
      Norb -
      Quote Originally Posted by vinaygoel2000 View Post
      Did u had an iPhone or any phone back in Poland? Exactly. So people in India are buying cheap phones. That's all I'm saying. For us iPhone might be a necessity but for them it's beyond luxury. Trust me there are also rich people in India that drive Mercedes and BMWs and have iPhones. India is not all poor.
      Ahh ok, we were arguing about two different things... Carry on!
    1. RyoSaeba's Avatar
      RyoSaeba -
      If you make $2 a day, perhaps having a cell phone (and paying for service) shouldn't be in your budget.
    1. Amishasdf's Avatar
      Amishasdf -
      I live in india and the thing is cost of living in india is less because the quality of live is poor. Most people who live on $2 a day would find living in a us prison luxurious. (Not kidding) For them a bed is a luxury forget about an air conditioner. The topic of an iphone for them is completely pointless
    1. nik138's Avatar
      nik138 -
      Quote Originally Posted by RyoSaeba View Post
      If you make $2 a day, perhaps having a cell phone (and paying for service) shouldn't be in your budget.
      Well India is a big country and im an Indian and living in Mumbai . Iphones do sell a lot and there a lot of people here that have iPhones . i have 2 so the point is that there are rich Indians that can afford to buy it and there are Indians that cant . So if you get similar features of an iphone at a much lower cost it opens doors for users who can access technology at a much lower cost .And I feel technology should not be only for the rich but for the common man too. I my self would never buy a Micro max phone but i know the maid or the security guy has a micro max. You cant expect them to have an iphone . 700usd is alot of money and that's how much an unlocked iPhone 5 cost . that's like a year pay for the average worker here. How can u expect the common man to afford that ? i remember way back in 2008 when the iPhone 2G was launched in US they were selling here for 2000usd locked and a few people had it . So there are filthy rich people in India too but apple is not targeting them they are looking at the average joe because that's where the main market is about 45% is upper middle class that can afford to buy the iPhone but aren't because Micromax and Karboon is giving Apple a run for their money. Well This my 2 cents worth ( or should i say 2 paisa) .
    1. Nikhil Gorwani's Avatar
      Nikhil Gorwani -
      Quote Originally Posted by Michael Essany View Post


      It's no secret that India is a high-priority emerging market for Apple. But the latest industry data shows that both Apple and Samsung are losing ground - and fast - to the makers of substantially more affordable devices.


      Bloomberg reported Friday that 800 million people in India live on less than $2 a day. As a result, it's easy to understand why Karbonn handsets, which cost approximately $66, are outselling Apple and Samsung handsets, which are three to six times more expensive depending on the models.

      “India is poised for a smartphone boom; just look at the Internet penetration and potential,” Deepak Mehrotra, CEO of Micromax, tells Bloomberg. “But we don’t see any point to offering a Ferrari.”

      As MMi reported at the close of 2012, Apple is now authorizing the use of payment plans to help prospective iPhone buyers more easily secure the smartphone inside of India.

      Source: Bloomberg
      That is true, especially Micromax seems to be becoming popular with the masses.
    1. hogcia's Avatar
      hogcia -
      Just bring back the iPhone 3GS for $49.95 & sell that in India off contract. Done.
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by hogcia View Post
      Just bring back the iPhone 3GS for $49.95 & sell that in India off contract. Done.
      Or even the 4. Retina display and all.
    1. usa_mostwanted007's Avatar
      usa_mostwanted007 -
      Your Book? Wat r u? And who u think ur comparing ur self 2? U don't know anything abt the country and u r judging cus u faced few people in us ? Did u ask them why they were doing rebate ? well atleast they dont live on food stamps. U talk like ur *** don't stink . Don't make comments abt countries u don't know. Keep ur **** to u ..

      Quote Originally Posted by Norb View Post
      Indians are the only people that would walk up to a register with a cart full of 'Free After Rebate' cordless phones. They have a reputation in my book, but I doubt I'm the only one like this. Money is not the most important thing in life but they tend to live like that, so I'm not sure smart is the right word.

      Now I know not all are the same but in my retail experience, this is the impression many have left upon me.

      Your Book? Wat r u? And who u think ur comparing ur self 2? U don't know anything abt the country and u r judging cus u faced few people in us ? Did u ask them why they were doing rebate ? well atleast they dont live on food stamps. U talk like ur *** don't stink . Don't make comments abt countries u don't know. Keep ur **** to u ..
    1. vickysworld9's Avatar
      vickysworld9 -
      Quote Originally Posted by runey71 View Post
      Well der... Of course they are...
      Believe me with the price of iphone offered in india when compared to USA or UK... There are many iPhones carried by people.. Many is like SUBSTANTIALLY HUGE... If the same price is offered in USA or UK.. I really doubt that there won't be more iphones sold than in India..
    1. Norb's Avatar
      Norb -
      delete this.
    1. kalpesh78's Avatar
      kalpesh78 -
      Quote Originally Posted by RyoSaeba View Post
      If you make $2 a day, perhaps having a cell phone (and paying for service) shouldn't be in your budget.
      well we have Vodafone and other service providers who give deals like never before. If you're in India you could talk to someone for over an hour with just 50 cents as talk time. cellphone is such a big hit here no wonder apple wants to be here. its the 2nd largest economy after china. Afew years back cellphones were with a privileged few. Now its with everyone.
    1. coolaks's Avatar
      coolaks -
      Quote Originally Posted by Norb View Post
      Indians are the only people that would walk up to a register with a cart full of 'Free After Rebate' cordless phones. They have a reputation in my book, but I doubt I'm the only one like this. Money is not the most important thing in life but they tend to live like that, so I'm not sure smart is the right word.

      Now I know not all are the same but in my retail experience, this is the impression many have left upon me.
      The reason why Apple is losing ground in India is because they treat it as a dumping ground. They're selling iPhone 4 here at 500 USD when converted. On the other hand, cheaper cellphone manufacturers are selling a better configuration Android device at less than half the price. Everyone knows that iPhone doesn't offer anything more where functionality is concerned.

      What is wrong with being careful with spending money? I think it is wise to not waste money on a phone that is launched 6 months after its release in the US and when everyone knows that the next model is only another six months away. Here people don't have disposable income like you people in the US.

      They have a reputation in your book? Just because you can waste money on expensive gadgets makes you better than people in India? Go ahead and waste your money on expensive overpriced stuff. And when you get axed, live off your welfare cheque. Ignorant fool.

      Keep your stereotypes to yourself. We all know several Polish stereotypes and believe me you don't want me to start!
    1. ventodivino's Avatar
      ventodivino -
      I have never seen a "replica" iPhone or iPhone imitator. However, I have seen very nice versions of Android handsets.
      If I could I would buy an imitation Galaxy Note. Ive seen some great ones.