RCOM to offer iPhone 5S and 5C at subsidised rates
Reliance will be offering the iPhone 5C and iPhone 5S at subsidised rates for 2 years with unlimited benefits for Rs 2,599 and Rs 2,999 and they seem like a pretty good deal
Its been a pretty small wait for Apple’s latest launches, i.e. the iPhone 5C and the iPhone 5S to hit the Indian shores. Both the devices will be in the Indian market in less than 24 hours. A couple of years ago, Apple never took the highly potent Indian smartphone market seriously because it never really fit into their scheme of things. In its American and European backyard, the company indulges in contract selling where the phone is sold on a subsidized price, believing that the user will bring in revenues by consumer services. In this business model, switching from one operator is very costly and hence, the operator gets loyal subscribers.
This time however, Apple has made arrangements to replicate its tried and tested business model in India. While a regular 5C and 5S will come for a whooping price of Rs 41,900 and Rs 53,500 respectively. However, if you buy these devices with RCom’s subscription on a 2 year contract , it will cost you between Rs 2,599 and Rs 2,999 per month.
For the 32GB and 64GB 5S variants, you’ll have to shell out Rs 10,992 and Rs 19,992 additionally. For the 32GB iPhone 5C variant, you’ll have to pay Rs 11,600 additionally up front. In lieu of this commitment, you will get unlimited voice calls, SMS and 3G data. You are expected to explore various apps and related content on Apple’s Itunes store. Hence, inducing consumers to further interact with the brand and spend money.
If you thought you could sell the phone after the expiry of contract, RCom has learnt well from its past lessons and you can buy the subsidized handset only if you hold an ICICI or HDFC bank credit card. Hence, the credit card works as an insurance for the company. The scheme seems win-win for all, the seller, the operator and the subscriber. However, such a business model has not taken off well in the country, considering the unique consumer behaviour. Let’s us see if Apple can change the whole dynamics.
