iPhone Sales Skyrocket in India Following Launch of New Payment Plan
iPhone sales in India have skyrocketed between 300% to 400% following the launch of an equal monthly installments payment plan and cash back promotions in the country, reports the Economic Times.
Analysts at Credit Suisse note that before Apple offered these EMI schemes to customers, iPhone sales were around 70,000-80,000 a month.
"From our channel checks we believe that iPhone sales are nearing 400,000 units per month in India - that is nearly 3% share of handset sales for a single top-end product in a market that has long been dominated by low-end feature phones," Credit Suisse's research analyst Sunil Tirumalai said.
Apple began its EMI scheme about four months ago, offering buyers the ability to make a partial payment on the iPhone 4 and 4S and then pay the rest of the amount in installments over 6 - 12 months with no interest.
"The 4-9% implicit discount coupled with the option of easy EMIs spread over 6-12 months became popular. Within a few months, our discussions with handset retailers indicated that iPhone sales went up 3-4x, forcing companies to respond," Tirumalai said.
It's widely rumored that Apple plans to release a low cost iPhone to better address emerging markets such as India.