Rolling out the new iPhone (News - Alert) 5 has proven to bring out not only the competitive side of customers, but also of retailers who are beginning to take pre-orders, such as those in India. In light of this, one iPhone retailer is anticipating this heavy volume of orders by slashing the price to one-up the stiff competition.
This “change in Apple’s (News - Alert) retail strategy could result in differential pricing and a possible price war in iPhone 5 prices in the weeks to come,” recently reports Times of India. The 16 GB iPhone 5 will cost Rs 45,500 in India, at least according to companies such as Airtel (News - Alert), Infibeam and Saholic, who all took advance bookings at that same price.
One seller, however, is looking to bump the price down by Rs 600, selling the product at an estimated Rs 44,900. While when converted this is only a difference of $11, it’s enough to make an impact.
“Though the difference is not much, it signals that resellers are already getting aggressive about Apple products as well,” TOI adds. “Apple iPhones and iPads usually sell at a premium in India and the country has a very small, niche market for the company's products due to high pricing. The year-old iPhone 4S still costs more than Samsung and HTC's (News - Alert) flagship smartphones in India.”
This “price war’”can apparently be attributed to Apple’s change in retail strategy.
“With retailers across the country now having access to iPhones, it is likely that they will undercut the prices in order to boost volumes, exactly what HS Distributors has done. By sacrificing their margins in order to gain volumes, such retailers will push down the selling price of the device and make it slightly more accessible to the buyers. However, until a well-known volume retailer does not start such a price war, it will have no bearing on overall sales and Apple's market share in the country,” TOI concludes.
This just goes to show how incredibly prevalent Apple technology has become across the entire world – a solid reflection of both consumer demands and retailers’ responses to it.
Edited by Rachel Ramsey