Feb 24, 2013: What do you do as a marketer, when you find that there is less traction for your high end smartphones? The challenge becomes manifold when you cannot reduce your prices as well. How do you make your smarthphones more affordable? It is by selling these high end phones by running equated monthly installment (EMI) schemes. Smartphone makers are increasingly coming out with EMI based schemes so as to boost up their sales and the companies which have taken the lead and are really making some waves are Apple, Nokia and Samsung.
Customers are seen lapping up this EMI offers since it allows them to own a high end gadget by not burning a hole in their pockets. The advantage that the customers get is that they need not spend on the smartphone in one go. According to Asim Warsi, Vice President, Samsung Mobile, “Consumers are happy with such schemes and there are positive responses from them”.
Apple has come out with a scheme wherein their Apple iPhone4, which costs Rs.26,500 is available for Rs.2,300 a month EMI for 12 months and iPhone5, which costs Rs.45,500 is available for an EMI of Rs.3,000 a month. The monthly down payment starts from Rs.9,990 and changes according to the model. The customers can buy the phone on EMI at zero per cent interest rate. Samsung has also come out with a similar scheme for its high end smartphones, Galaxy Note 2, SIII and Galaxy Grand and the uniqueness of their scheme is that there is no down payment.
Companies are aggressively looking to increase sales by offering EMI schemes and for this are tying up with Banks and Credit Card companies. The industry expects that this move is likely to get more acceptance among the customers as the phones have become now more affordable and we can see more traction in the smartphone market in coming months.