Smartphones Dropping Prices: A New Challenge For The Global Brands


Till last year, popular smartphones available in the market were all priced between rupees 40,000 to 50,000. In order to fulfil the highly sophisticated and ever demanding specifications of the market, the flagships were easily touching high prices. But with the advent of new brands in the market, growing challenge has been emerging for international brands. The development of exciting features brings with it a major concern regarding the price of these emerging products.

Micromax and Karbonn mobiles are the first smartphone brands that realised the importance of competent pricing apart from attractive features. In the last 12 months, Motorola has also launched Moto E and Moto G; smartphones with competent prices.  Following these trends in the market, Nokia launched Lumia-520 its most successful window’s phone, priced close to rupees 10000.

Asus Zenfone series and China’s Xiaomi, which provide cutting edge features at competent prices, have entered the Indian market as well. Within four days after its devices went on sale, Asus sold 40,000 pieces.

The Indian smart phone market has grown by 186 percent in 2014, and 78 percent of the total increase is contributed by the phones ranging approximately up to rupees 12000; pointing towards the choice of consumers i.e. less priced gadgets.

The smart phones that Indian brands have to offer are equally good as the international brands. Most of the global smartphone companies come with certain amount of credibility as international brands. But the growing popularity of the emerging local brands that provide similar products as international companies at one-third of the price is likely to pose a big challenge to global smartphone companies. As a result, foreign companies are now seeking new ways to maintain its ground in the Indian market. For instance, Apple launched buy back schemes and kept iPhone 4 at a discounted price in India to boost the sale of the product in the Indian market.

Though the prices of the big brands trip down considerably at the online sales portals, they are still thrice the price than what the entry level brands have to offer.

Even in Europe and the United States of America, the entry level brands are welcomed because of the competent prices and features that they have to offer.

The top brands that offer pricey flagships of over rupees 50,000 are few. No doubt these products are made using the best components and offer the best of innovations. But they usually do not have a huge turnout, since the best of quality is every consumer’s priority.

It will be interesting to see how the market behaves with the growing emergence of new brands that are technologically advanced and have a wide variety of products to offer at a reasonable price. Whatever the case may be, the buyer has a range of phones to choose from at a price which suits their pockets.

Ratanpriya Sharma

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