Here’s how Amazon plans to make premium smartphones ‘affordable’ for you
NEW DELHI: Amazon is working towards making premium smartphones more affordable for Indian customers by partnering with banks, financial institutions and credit rating companies to offer buyers credit options to pay for the devices at their convenience.
These steps, along with efforts to constantly bring on board a broader selection of smartphone brands, are aimed at widening and expanding Amazon’s footprint in this category.
“We’ve noticed the moment we provide some of the affordability initiatives to customers, we see an uptick in adoption and sales of the brand,” Noor Patel, director, category management, Amazon India, told ET.
Most mobile-phone companies have started funding these affordability plans because they see better returns on investment.
On average, one in three customers buys a smartphone on a nocost EMI basis and one in five purchases a smartphone on exchange, Patel said.
“Marrying affordability with aspiration is the biggest insight that we have got and we’re doubling down on this one,” he said.
Demand in the premium smartphone category (costing Rs 25,000 and above) on Amazon India grew close to 33% in January-March from a year earlier compared with 40% growth in demand for mass phones (costing between Rs 10,000 and Rs 25,000) in the same period.
The average sale price of smartphones in India is expected to rise by over 18% to $190-$210 (Rs 13,000- Rs 15,000) by this year-end amid increasing demand for mid-segment devices with premium features, according to analysts from Counterpoint Technology Market Research, International Data Corporation and techARC.
“We’ve seen a shift in ASPs of smartphones. To meet the aspirations of the Indian consumers, we need to target affordability of smartphones,” said Patel.