Opinion Smart-sell
We don't mind pricey phones,as long as it is under Rs 20,000 - the average Indian user's glass ceiling.
India was blessed last week with two top draw smartphones: the iPhone4 and the Samsung Galaxy SII.
However,the prices of the two phones,undoubtedly among the best in the market these days,will seem otherworldly for most ‘poor’ Indians. We love our phones to be state-of-the-art and dont mind them being a bit pricey,as long as it is under Rs 20,000 — that is the glass ceiling for the average Indian phone buyer.
But that is not the story elsewhere. An iPhone is pretty much basic in countries like the US and Australia. Yeah,the phone is cheaper there,you might argue. The answer is no. The phone costs almost the same. But it is available much cheaper,thanks to package deals offered by service providers. AT&T,for instance,will give you an iPhone4 for as low as $199,about Rs 9,000,provided you sign up for at least a one-year contract. Tell me,who wouldnt want to buy an iPhone for Rs 9,000.
This neat marketing strategy has fuelled iPhones growth around the world,except a handful of countries like India. No wonder,the phone has sold over 100 million units worldwide.
But why havent we seen such a strategy being used in a vast market like India? I think a lot of it is to do with trust. Not many companies will trust an Indian customer going home with a Rs 40,000 phone on Rs 10,000 down payment. When reliance launched its CDMA services in the early part of last decade,they urged customers to go home with a mobile phone by paying just around Rs 500. Most of them went home with the phones,made lots of calls,and never turned up.
But over the years Indian companies as well as customers seem to have matured. A good indicator of this fact is a new scheme by MTS. The company is giving its customers the MTS Pulse,a HTC Android phone,for free,provided they sign a 12-month usage contract which will mean a Rs 1,500 monthly bill. But the bill will pay for 1,500 minutes,1,500 SMSs & 1,500 MB data usage every month as well as the phone,which would otherwise cost Rs 18,000. Not a bad deal.
Looking at the initial response received by MTS,the chances are other companies will also follow suit. Heres hoping you will see more smartphones in Indian hands in the not so distant future.
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