How To Sell An Expensive Smartphone In The Emerging World

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The Economics Of Selling An Expensive Phone To Rich People In Poor Countries (Quartz)
The iPhone 5S recently debuted in India at the beginning of the November at the expensive retail price of $841. Somehow, it sold out within 24 hours.

gold iphone 5s

Megan Rose Dickey/Business Insider

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For the year, analysts in the country predict close to $157 million in iPhone 5S sales, which would be double over last year's iPhone 5 sales.

So how, in a poverty-stricken nation like India, can Apple successfully carve out a portion of the mobile market with its premium-priced devices?

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According to Indian tech journalist Rajeev Makhni, claims many smartphone companies set the smartphone price bar high, then knock it down drastically as time goes on. Yet Apple keeps its prices high, largely to preserve its image as a premium product.

So, Apple has instituted some buy-backs and zero-interest financing plans in order to lure customers to the iPhone while keeping the handset, and it's high price, desirable.

Apple only needs to sell about 200,000 units to meet its revenue goal, which constitutes a minimal portion of the Indian smartphone market. Given Apple's struggles at the opposite end of the market, aiming for a small share of the burgeoning Indian mobile market in order to preserve premium pricing seems a bit shortsighted. Read >

In other news...

IDC announced Android smartphone shipments for the third quarter were above 211 million units, which amounts to roughly 81% market share. (IDC)

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According to Strand Consulting, many mobile operators have the wrong impression about their prepaid business. (Strand)

U.S. carrier T-Mobile is looking to raise close to $2 billion to expand its network coverage areas. (Reuters)

Here is proof that Americans really are cutting the cable TV cord. (Quartz)

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Horace Dediu of Asymco questions the value an active user on iOS to Apple. (Asymco)