“According to a new report out today, equal monthly installments (EMI) and cash back schemes have worked wonders for Apple in India as iPhone’s monthly sales have risen by 300% to 400% over the last few months,” Jack Purcher reports for Patently Apple.
“Compared to average monthly sales of 70,000-80,000 smartphones before the EMI schemes were offered to consumers in India iPhone sales have zoomed up to stratospheric levels, analysts at Credit Suisse said,” Purcher reports. “In a note to their clients, Credit Suisse’s research analyst Sunil Tirumalai stated that from their channel checks, they believe that Apple’s iPhone sales are nearing 400,000 units per month in India. That represents close to 3% market share of handset sales for a single top-end product in a market that has long been dominated by low-end feature phones.”
Purcher reports, “About four months ago, Apple began its EMI scheme that offered potential buyers to make a partial payment of iPhone 4 and 4S models upfront and pay the rest of the amount in installments over 6 to 12 months without paying any interest.”
Read more in the full article here.
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Only 300% or 400%! The talking heads are expecting 3,000% to 400,000%. And where is Apple going to get all that loose cash from? There are a lot of people in India that would love a zero percent loan. Maybe having a few billion in the oversea bank is a good thing!
All that cash overseas is for all the server farms they’re building.
FINALLY
It’s about time Apple got serious about expanding its user base.
This push represents an investment that costs far less than stock buybacks and Aerobie office buildings, but will do far more to ensure Apple’s future prosperity. Cook may be smart, but he sure is a slow learner.
Baloney. Apple tries various sales tactics in different countries based on what the local economics warrant. Apple has hit on something in India, and for all we know this is how most smart phones are sold in India (much like most smart phones are sold via subsidized 2 year contracts in the U.S.).
And I seriously doubt Tim Cook is developing the marketing strategy for India. That’s what Apple hires marketing people to do. Cook may sign off on their recommendations, but more likely it’s a regional VP who has that authority.
Unfortunately, Apple’s India gains are going to be compared to Samsung’s India gains and they’ll undoubtedly make iPhone sales look pathetic in comparison. Apple has $100 billion in cash overseas and I think it would be a good idea for Apple to offer those consumers ultra low-cost financing. Apple should be able to afford to offer its own subsidies in BRIC nations.
Either Apple wants to put iPhones in those people’s hands or not. I’m certainly not telling Apple to change whatever goals it has. They can still offer BRIC nations quality products as long as those consumers can pay back the higher cost of an iPhone a little at a time. Wall Street continues to say Apple has to expand its user base and to me it doesn’t seem like a bad thing to extend it down to a new mid-level iPhone. I know Apple is well out of any market share race at this point. Now it’s just a matter of slowing down the losses.
Apple’s India sales have been so low that a 400% increase could be just 20,000 iPhone sales.
Ouch!
Loos like its working great. Good job!