The two-year-old iPhone 4 is outselling the recently launched iPhone 5 in India. This is due to a buyback scheme launched by Apple in the country. Apple is offering users a discount of at least Rs. 7,000 in exchange for your old smartphone.
In India, the sub-Rs. 20k price point is very attractive and is the segment that sees the maximum sale of smartphones in India. This segment is dominated with smartphones from manufactures like Samsung, Sony, Xolo, Nokia, Micromax and more.
The iPhone 4 is priced at Rs. 26,500 in India and after the discount scheme; the smartphone falls in the sub-Rs. 20k price point making it an attractive deal. “Apple follows a single pricing policy across the world and the company or its distributors have resorted to indirect discounting to improve penetration of iPhones in India. Smartphone volumes in India either come from the entry-level or the Rs 12,000-22,000 segment, which is where Apple wants to position the iPhone 4,” said an official working with an Apple premium reseller to TOI.
This is the first time that we have heard Apple offer a smartphone buyback scheme for the iPhone. In the US you get gift cards, discounts and a ‘back to school’ deal which gives users an attractive deal on Apple products ranging from the iPhone, iPod, iPad and the Mac family. India too has seen some schemes and discounts on Apple products but never a buyback scheme.
Retail chains such as Reliance Digital, The Mobile Store and more say that sales of the iPhone 4 have increased tremendously after the launch of the scheme. For those of you interested, this is how it works. A customer will get a discount of Rs. 7,000 on his old phone. If the value of his phone is higher than Rs. 7,000 in the second hand market, say Rs. 8,000 or so, the customer will get the entire amount of his second hand phones valuation deducted from the price of the iPhone 4.
The TOI report on the story goes to say, “The retailer, in turn, is getting reimbursed by Apple’s distributors through a Rs 5,000 credit note. In addition, the retailer will pocket the money earned from selling the customer’s old phone in the second-hand market.”
Since Samsung is one of the market leaders in the sub-Rs. 20k price bracket in India, they were quick to respond to Apple’s discount scheme. The Korean electronics giant is offering a discount of up to Rs. 5,600 on its mid to high-end Galaxy phones and tablet lineup. This discount is available to you if you purchase the device through your debit or credit card. The devices included in this deal are the Samsung Galaxy Tab, Samsung Galaxy S III, Samsung Galaxy Note II and more.
After falling into the sub-Rs. 20k segment, the iPhone 4 is competing with the likes of the Xolo X1000, Samsung Galaxy Grand Duos, Sony Xperia P, Sony Xperia Ion, LG Optimus L9 and many more.
The fall in the price of the smartphones in India is good news for the consumer as it gives them access to fantastic products at affordable prices. The TOI report goes on to say, “A premium reseller executive said Apple would continue to make profits on iPhone 4 handsets in India, despite the buyback scheme, because of high margins. Another leading Apple dealer said the company was offering the discounted price because the demand for the iPhone 4 had waned in the US and Europe as a new model was expected in the near future.”
Source: Times Of India