Wednesday, September 11, 2013

Too pricey: Apple 5C likely to cost Rs 35K-40K; won't gain market share in India


Over the past few quarters, Apple has been losing market share outside the US with first-time smartphone buyers in countries such as India, Brazil and Indonesia opting for Samsung and other cheaper handsets running on Google’s Android software.
Over the past few quarters, Apple has been losing market share outside the US with first-time smartphone buyers in countries such as India, Brazil and Indonesia opting for Samsung and other cheaper handsets running on Google’s Android software.
BANGALORE/KOLKATA: Apple's latest iteration of iPhones — 5S and 5C — will expand the company's portfolio but do little to help increase its share of the world's fastest-growing smartphone market, analysts and industry executives said. With no indication from Apple that it is keen on becoming a significant player in India just yet — its share of the smartphone market by volume is less than 2 per cent, according to market researcher Canalys — the new phones are expected to draw interest mainly from well-heeled aficionados.

"The two new iPhones will attract a niche audience like affluent youngsters and die-hard Apple fans as they are priced high and come in different colours," said Himanshu Chakrawarti, CEO of Mobile Store. Mobile Store is India's largest mobile phone retail chain.

India has not been a critical market for Apple as majority of the smartphones sold in the country fall in the Rs 7,000-12,000 price range. Telecom analysts and retailers said the iPhone 5S and 5C are priced much higher than they expected and are unlikely to find many takers here even as thousands of mobile users migrate from basic handsets to smartphones each day.

Chakrawarti said he expects the iPhone 5S, which comes with a built-in finger-print scanner, to be priced between Rs 45,000 and Rs 50,000. The 5C, he said, could be sold between Rs 35,000 and Rs 40,000. The iPhone 5 is sold in India for around Rs 45,000. An Apple India spokesman said the company has not yet decided on the price of the devices or when they will be launched here.

Over the past few quarters, Apple has been losing market share outside the US with first-time smartphone buyers in countries such as India, Brazil and Indonesia opting for Samsung and other cheaper handsets running on Google's Android software. In India, Canalys estimates that Samsung accounted for 36 per cent of all smartphones sold in the country between April and June. In terms of value, Apple's market share was 5 per cent compared with Samsung's 46 per cent. 
shailendar kumar 
pgdm 1st year 

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